Press Release
VIS Reaffirms Broker Fiduciary Rating of Alpha Capital (Pvt) Limited
Karachi, April 03, 2026: VIS Credit Rating Company Ltd. (VIS) has reaffirmed the Broker Fiduciary Rating of Alpha Capital Pvt Limited (‘ACPL’ or ‘the Company’) at ‘BFR3’. Rating of ‘BFR3’ denotes good fiduciary standards. Outlook on the assigned rating is ‘Stable’. Last rating action was announced on March 11, 2025.
The rating signifies sound management and client services, while ownership and governance, business and financial stability, and internal control and regulatory compliance are considered adequate.
Incorporated in November 1994, Alpha Capital is a private limited company principally engaged in the brokerage of shares, commodities, money market instruments and consultancy. The Company is a corporate member of the Pakistan Stock Exchange (PSX) Limited and Pakistan Mercantile Exchange Limited (PMEX). Catering to retail and institutional clients, the Company provides online and assisted trading services from its registered offices in Karachi. The Company holds Trading Rights Entitlement Certificate (TREC) granted by Pakistan Stock Exchange Limited (PSX) to provide Trading & Self Clearing Services. External auditors of the Company are category ‘A’ auditors as per the approved list of auditors published by the State Bank of Pakistan (SBP).
Assigned rating signifies the Company’s governance framework, with five members on the board of directors along with four board committees, albeit repetition of members is observed across these committees. Further increasing the board size, along with adding independent and certified directors and thereby ensuring a more diversified composition of board committees, may further strengthen the governance framework of the Company. Rating also takes into account the sound management and client services of the Company, which may be further enhanced through ensuring greater visibility of investor grievance procedures on the website. While contingency measures of the Company are in place, it needs to be further strengthened. Internal control framework of the Company may be further strengthened through expanding the scope of internal policies as well as increasing frequency of reviewing order recording systems. Rating also takes note of the non-compliances highlighted by PSX and the penalty imposed thereon. Going forward, ensuring compliance with all applicable regulations will be important from the rating’s perspective.
Assessment of financial profile of the Company reflects continued growth in the Company’s brokerage revenue during FY25 and 1HFY26, in line with positive industry trends. Consequently, cost-to-income ratio of the Company improved, while the liquidity profile remained adequate. The Company carry no market risk in absence of proprietary investments. While the equity base is small and leverage ratio is on the higher side, the minimal debt levels provide support to the capitalization profile of the Company. Going forward, revenue growth, sustained improvement in profitability, maintenance of low market risk, and improvement in the leverage metric will remain important for the rating.
For further information on this rating announcement, please contact at (021) 35311861-64 or email at info@vis.com.pk.
Applicable Rating Criteria: Broker Fiduciary Ratings:
https://docs.vis.com.pk/Methodologies-2025/BrokerFiduciaryRating-Nov25.pdf
VIS Rating Scale
https://docs.vis.com.pk/docs/VISRatingScales.pdf