Press Release
VIS Reaffirms Entity Ratings of Javedan Corporation Limited
Karachi, January 01, 2026: VIS Credit Rating Company Limited (VIS) has reaffirmed the entity ratings of Javedan Corporation Limited (‘JVDC’ or the ‘Company’) at ‘A+/A1’ (‘Single A Plus/A One’). Medium to long term rating of ‘A+’ indicates good credit quality; protection factors are adequate. Risk factors may vary with possible changes in the economy. Short term rating of ‘A1’ indicates strong likelihood of timely repayment of short-term obligations with excellent liquidity factors. Outlook on the assigned ratings remains ‘Stable’. Previous rating action was announced on October 09, 2024. Rating of Sukuk has also been reaffirmed at ‘AA-’.
The Company was incorporated in Pakistan on June 08, 1961, as a public limited company under the repealed Companies Act, 1913 (now Companies Act, 2017) and is listed on Pakistan Stock Exchange Limited. The registered office of the Company is located at Arif Habib Centre, 23, M.T Khan Road, Karachi. The Company has ceased its cement business since July 01, 2010 and the management has developed business diversification strategy for utilizing the Company’s land having area of 1,367 acres for developing a housing scheme, “Naya Nazimabad”, that includes bungalows, open plots, flat sites and commercial sites.
JVDC ratings reflect its established market position within a large-scale, master-planned urban development, supported by strong sponsor lineage under the Arif Habib Group. The Company continues to benefit from diversified real estate offerings, steady secondary market activity and progress across multiple phases of Naya Nazimabad. Cash flow visibility is underpinned by upcoming ongoing commercial plot monetization. Despite operating within Pakistan’s cyclical and liquidity-constrained real estate sector, The Company continues to demonstrate resilient operational performance. Revenue grew sharply in FY25, Future performance will depend on timely execution of planned phases, stability in demand, and successful monetization of inventory. The Company’s capital structure strengthened as total debt declined and gearing improved. Liquidity is supported by satisfactory receivable recoveries, available working capital lines, and adequate CFFO-based coverage metrics. Key rating constraints include the sector’s inherent volatility, reliance on steady sales and project-driven cash flows, and execution risks tied to upcoming large-scale phases. Nonetheless, draw comfort from sponsors’ continued support.
For further information on this rating announcement, please contact at 021-35311861-64 or email at info@vis.com.pk.
Applicable Rating Criteria:
Corporate Rating
https://docs.vis.com.pk/docs/CorporateMethodology.pdf
VIS Issue/Issuer Rating Scale
https://docs.vis.com.pk/docs/VISRatingScales.pdf