Press Release

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

Lahore, January 30, 2024: VIS Credit Rating Company Limited (VIS) has reaffirmed entity ratings of Ali Gohar & Company (Private) Limited (AG&C) at ‘A/A-2’ (Single A/A-Two). 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. Outlook on the assigned rating is ‘Stable’. Previous rating action was announced on October 06, 2022.
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. The management is focused on adding marketing function of its pharma products and also enhancing cold storage. The company plans to rationalize costs by using solar power.
Net sales increased during the reporting period on account of higher customer demand and pricing. Gross margin fluctuation mainly stems from variability in sales mix. This along with higher charges for fuel, freight and electricity and higher incidence of taxation resulted in lower net income. The management expects improvement in margins in the ongoing year primarily on the basis of addition of new partners along with organic growth and cost rationalization efforts. Liquidity and coverages, though impacted, have remained sound. Gearing remained low and the management intends to maintain a low leveraged capital structure. The ratings remain dependent on maintenance of the overall financial risk profile of the company.

For further information on this rating announcement, please contact the undersigned at 042-35723411-12 (8008) or email at

Maimoon Rasheed

Applicable Rating Criteria: Industrial Corporates (May 2023)

VIS Issue/Issuer Rating Scale

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