Press Release

VIS Reaffirms Entity Ratings of Topline Securities Limited

Karachi, July 24, 2023: VIS Credit Rating Company Ltd. (VIS) has reaffirmed entity ratings of Topline Securities Limited (TSL) at ‘A/A-1’ (A/A-One). Short-term rating of A-1 denotes high certainty of timely payment, excellent liquidity factors supported by good fundamental protection factors and minor risk factors. Long-term rating of ‘A’ signifies good credit quality with adequate protection factors. Risk factors may vary with possible changes in the economy. Outlook on the assigned ratings is ‘Stable’. Previous rating action was announced on April 12, 2022.

TSL is engaged in the business of stock brokerage, commodity brokerage, underwriting, consultancy, book building, and advisory services. The majority Shareholding of the Company is primarily vested with Mr. Mohammad Sohail, who also serves as the Chief Executive Officer (CEO) of the company. The company provides both online and physical trading services to local and foreign clients. Ratings incorporates TSL’s modest improvement in market shares amid notable contraction in industry volumes. Ratings also takes note of TSL’s client base with individual clients dominating the client mix. Moreover, TSL’s client mix depicts a moderate concentration.

In line with the industry trends, TSL’s brokerage income has shown a decline in FY22 followed by a further reduction in H’FY23. However, notably higher income from advisory operations has compensated for operating revenues for FY22. This has also resulted in an increased diversification of the revenue base, boding well from the ratings perspective. Efficiency of the Company continues to be at moderate levels. The management employs a variable remuneration structure wherein it provides support in controlling cost during lean times.

Assigned ratings factor in the sound financial risk profile of the Company. TSL’s short term investments are majorly parked in mutual funds, specifically in money market funds, and government securities, which primarily consist of treasury bills, thereby mitigating the market risk of these holdings. Ratings also take into account the sound capitalization profile given low gearing and leverage ratios. Maintenance of the same, together with the augmentation of its client base, will remain important for the ratings.

For further information on this rating announcement, please contact Mr. Shaheryar Khan (Ext: 209) or the undersigned (Ext: 207) at (021) 35311861-64 or email at

Sara Ahmed

Applicable Rating Criteria: Securities Firm (July 2020)

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 2023 VIS Credit Rating Company Limited . All rights reserved. Contents may be used by news media with credit to VIS .