Press Release

VIS Reaffirms Entity Ratings of Mannan Shahid Forgings Limited

Karachi, July 9, 2026: VIS Credit Rating Company Limited (VIS) has reaffirmed the entity ratings of Mannan Shahid Forgings Limited at ‘A/A2’ (Single A /Single A Two). 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 rating remains ‘Stable’. Previous rating action was announced on June 13, 2025.

Mannan Shahid Forgings Limited (‘MSFL’ or ‘the Company’) was incorporated in Pakistan in 1989 as a private limited company. It was converted into an unquoted public limited company in 2005. The Company is principally engaged in the manufacturing and sale of forged, machined and heat-treated automotive and engineering components catering to local and European and US markets. Product applications primarily include automobile segment, industrial and engineering sectors. The Company’s manufacturing facilities are located in Lahore. Shareholding is concentrated with the sponsoring family.

Assigned ratings are underpinned by the Company’s robust financial profile, experienced management team, and a unique closed-die forging capacity locally. MSFL has diversified its product portfolio and customer base, shifting its focus from the local tractor sector toward export markets where it maintains long-standing relationships with international OEMs and faces limited domestic competition. Despite lower revenue and subdued margins in FY25 due to weak export volumes and pricing, financial profile remained stable. A conservative capitalization profile with low leverage and negligible net gearing, provide comfort to the ratings. A notable recovery occurred in 9MFY26, driven by a favorable sales mix, higher margins, increased profitability, and improved cash flow generation. Moving forward, the ratings remain dependent on Company's ability to sustain the improvement in financial parameters, including maintaining limited reliance on borrowings and long-term plans to expand its operating capacities.

For further information on this ratings announcement, please contact at 021-35311861-64 or email at info@vis.com.pk

Applicable Rating Criteria:

Industrial Corporates
https://docs.vis.com.pk/docs/CorporateMethodology.pdf

VIS Issue/Issuer Rating Scale
https://docs.vis.com.pk/docs/VISRatingScales.pdf

Information herein was obtained from sources believed to be accurate and reliable; however, VIS Credit Rating Company Limited (VIS) does not guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information. VIS, the analysts involved in the rating process and members of its rating committee do not have any conflict of interest relating to the rating(s)/ranking(s) mentioned in this report. VIS is paid a fee for most rating assignments. This rating/ranking is an opinion and is not a recommendation to buy or sell any securities. Copyright July 10, 2026 VIS Credit Rating Company Limited. All rights reserved. Contents may be used by news media with credit to VIS.