Press Release

VIS Reaffirms Entity Rating of Shirazi Investments (Private) Limited

Karachi, January 13, 2025: VIS Credit Rating Company Limited (VIS) has reaffirmed the entity ratings of Shirazi Investments (Private) Limited (‘SIL’ or the ‘Company’) at ‘AA/A1+’ (Double A/ A one plus). Medium to long term rating of 'AA' indicates High credit quality; Protection factors are strong. Risk is modest but may vary slightly from time to time because of economic conditions. Short term rating of 'A1+' indicates Strongest likelihood of timely repayment of short-term obligations with outstanding liquidity factors. Outlook on the assigned ratings remains Stable. Previous Rating action was announced on January 24, 2024.

Incorporated in 1962, SIL serves as the holding company of the Atlas Group, one of Pakistan’s leading conglomerates, with a legacy spanning over six decades. The Company has established a diversified investment portfolio, with key stakes in automotive, power generation, trading, and financial services. The shareholding of SIL is controlled by the Shirazi family. Its headquarters are in Karachi, with regional offices in Lahore and Islamabad.

A significant portion of SIL's asset base is derived from its investment portfolio, which is strategically balanced between long-term and short-term assets. The long-term portfolio consists of strategic investments in 15 companies, including 9 unlisted subsidiaries, 3 listed subsidiaries, 1 listed associate company, and 2 unlisted entities. Notable investments in the long-term portfolio include Atlas Honda Limited, Atlas Power Limited, and Honda Atlas Cars Pakistan Limited, which together account for a major share of its value. Additionally, the Company manages a short-term investment portfolio, primarily composed of listed securities and mutual funds, with a substantial allocation in listed equities. While the increase in short-term equity exposure has heightened market risk, SIL's investment committee rigorously monitors and manages the associated risks to ensure alignment with market dynamics.

In FY24, SIL saw a notable rise in profitability, driven by increased dividend income and unrealized gains from the revaluation of its investments, supported by exceptional returns in the stock market. The Company adheres to a conservative financing strategy, with zero bank borrowings as at end-FY24 and prioritizing effective cash flow management. SIL’s strong capitalization profile is bolstered by its prudent financial management, with ratings closely tied to its ability to manage portfolio risks, while maintaining robust liquidity and capitalization levels.

For further information on this ratings announcement, please contact on 021-35311861-64 or email at info@vis.com.pk.




Applicable Rating Criteria:

Industrial Corporates
https://docs.vis.com.pk/docs/CorporateMethodology.pdf

VIS Issue/Issuer Rating Scale
https://docs.vis.com.pk/docs/VISRatingScales.pdf

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