Press Release

VIS reaffirms Entity Ratings of Ali Gohar & Company (Private) Limited

Karachi, October 06, 2022: VIS Credit Rating Company Ltd. has reaffirmed entity ratings of Ali Gohar & Company (Private) Limited (AG&C) at ‘A/A-2’ (Single A/A-Two). Outlook on the assigned rating is ‘Stable’. The medium to long-term rating of ‘A’ signifies good credit quality; protection factors are adequate. Risk factors may vary with possible changes in the economy. The short-term rating of ‘A-2’ signifies good certainty of timely payment. Liquidity factors and company fundamentals are sound. Access to capital markets is good. Risk factors are small. The previous rating action was announced on August 09, 2021.

AG&C is principally engaged in distribution of goods and services in three segments including pharmaceutical, medical devices and consumer goods. The assigned ratings take into account AG&C’s position amongst one of the leading national level distribution companies in the country coupled with low business risk profile and a well-established distribution infrastructure. Ratings also incorporate the Company’s sound financial profile as evident by a conservative capital structure and strong liquidity profile.

Assessment of financial risk profile incorporates double-digit revenue growth attributable to organic growth from existing principals along with addition of two new principals in the outgoing year. Growth across all business segments was recorded in the outgoing year with proportion of FMCG segment increasing on a timeline basis. Gross margins remained stable due to the long-term nature of contracts, as margins usually remain fixed over the period of the contract. With the management’s focus on cost rationalization, manageable operating expenses, lower finance costs and higher other income positively supported net profitability of the company. However, given thin net margins, maintaining profitability profile in the backdrop of inflationary pressures will remain important.

For further information on this rating announcement, please contact Ms. Asfia Aziz (Ext: 212) or the undersigned (Ext: 207) at (021) 35311861-66 or email at

Sara Ahmed

Applicable Rating Criteria: Industrial Corporates (August 2021 )

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 2022 VIS Credit Rating Company Limited . All rights reserved. Contents may be used by news media with credit to VIS .

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