Press Release
VIS Reaffirms Broker Management Rating to DJM Securities Limited
Karachi, May 29, 2024: VIS Credit Rating Company Ltd. has reaffirmed Broker Management Rating of DJM Securities Limited (DJMSL) at ‘BMR3+’. Outlook on the assigned rating is ‘Stable’. Previous rating action was announced on January 27, 2023.
The rating denotes sound external controls while ownership and governance, client services, internal controls, regulatory compliance and business and financial sustainability are considered adequate.
DJM Securities Limited is a public unlisted company incorporated in 2002, providing equity brokerage services to institutional as well as individual clients, in both local and international equity and future markets. Major shareholding of the Company is vested with four individuals including the CEO. The company operates from Karachi and provides both online and assisted trading services to its clients. The Company holds Trading Rights Entitlement Certificate (TREC) granted by Pakistan Stock Exchange (PSX), and is registered with SECP to provide Trading & Self Clearing Services. External auditors of the Company are BDO Ebrahim & Co, which belong to category ‘A’ on the approved list of auditors published by the State Bank of Pakistan (SBP).
Assigned rating takes into account DJMSL’s adequate ownership and governance framework, Internal control framework, Client relationship and fairplay, HR and Infrastructure and Compliance and risk management. The External control framework is considered sound.
Assessment of the Company’s financial profile depicts improvement in the Company’s earning profile in HFY24. Resultantly, the operational efficiency of the Company witnessed a notable improvement. Market risk of the Company is considered on the higher side given the sizeable proprietary book maintained by the Company. Liquid assets of the Company provides adequate coverage against its total liabilities while gearing and leverage indicators are at manageable levels. Going forward, enhancing revenue base while diversifying revenue streams and maintaining low cost to income ratio will be important along with managing market risk within reasonable levels.
For further information on this rating announcement, please contact at 021-35311861-64 or email at info@vis.com.pk.
Applicable Rating Criteria: Broker Management Ratings:
https://docs.vis.com.pk/Methodologies%202024/Broker-Management.pdf
VIS Rating Scale
https://docs.vis.com.pk/docs/VISRatingScales.pdf