Press Release
VIS Assigns Initial Ratings to Saakh Pharma (Pvt.) Limited
Karachi, August 29, 2025: VIS Credit Rating Company Limited (VIS) has assigned initial entity ratings of ‘A-/A2’ (Single A minus/A Two) to Saakh Pharma (Pvt.) Limited (‘SAAKH’ or the ‘Company’). 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 ‘A2’ indicates good likelihood of timely repayment of short-term obligations with sound short-term liquidity factors. Outlook on the assigned ratings is ‘Stable.’
SAAKH was incorporated on June 9, 2014 in Pakistan under the Companies Ordinance, 1984 (repealed by Companies Act, 2017). It is a family-owned and controlled entity, wholly held by Ms. Syeda Sardar Bano, with operations managed by her sons, Syed Mujtaba Hussain Kazmi (Director) and Syed Mustafa Hussain Kazmi (CEO). The Company is engaged in manufacturing and sale of Active Pharmaceutical Ingredients (APIs). SAAKH operates across three segments: Antibiotics APIs, General APIs, and Pelletization & Taste Masking. The Antibiotics segment comprises two subclasses—Penicillin and Cephalosporins. Within the General segment, the product portfolio includes APIs for Paracetamol, Ciprofloxacin, and Sitagliptin. The Pelletization & Taste Masking segment covers products such as Esomeprazole, Omeprazole, Lansoprazole, Itraconazole, and Diclofenac Sodium.
The assigned ratings reflect the significant capitalization of the Company by the sponsors, aimed at mitigating liquidity risks in an industry where prevailing prices are determined by market forces and raw material prices fluctuate heavily due to import dependency. Being a volume driven industry, it also requires heavy investment in working capital. The sponsors have injected PKR 410 mn in FY25 and a further PKR 450 mn in August 2025 and has enabled the Company to rationalize its borrowings and maintain adequate working capital to support volume generation. The production team has also enhanced productivity by addressing bottlenecks, leveraging their learning curve to achieve sustained margin improvements driven by increased volumes.
With improved capitalization and liquidity, higher margins, and greater capacity utilization contributing to a stronger bottom line, the Company is expected to gain enhanced access to working capital lines, enabling continued growth. The recent downward trend in interest rates has further strengthened the Company’s financial position.
For further information on this ratings announcement, please contact at 021-35311861-64 or email at info@vis.com.pk.
Applicable Rating Criteria: Corporates
https://docs.vis.com.pk/docs/CorporateMethodology.pdf
VIS Issue/Issuer Rating Scale
https://docs.vis.com.pk/docs/VISRatingScales.pdf