Press Release

VIS Reaffirms Entity Ratings of Adam Securities Limited

Karachi, February 21, 2025: VIS Credit Rating Company Ltd. (VIS) has reaffirmed entity ratings of Adam Securities Limited (ASL) at ‘A-/A2’ (Single A Minus/A Two). Long-term rating of ‘A-’ signifies good credit quality with adequate protection factors. Risk factors may vary with possible changes in the economy. Short-term rating of ‘A2’ depicts good likelihood of timely repayment of short-term obligations with sound short-term liquidity factors. Outlook on the assigned ratings remain ‘Positive’. Previous rating action was announced on December 28, 2023.

Adam Securities Limited (ASL) is engaged in provision of equity brokerage services mainly to domestic retail and institutional clients. Shareholding of the Company is primarily vested within the family represented by one individual. The Company operates through its head office in Karachi. ASL holds a Trading Right Entitlement Certificate (TREC) for Trading & Self Clearing Services issued by Pakistan Stock Exchange. The Company is also a Member of Pakistan Mercantile Exchange Limited (PMEX). External auditors are M/s Baker Tilly Mehmood Idrees Qamar Chartered Accountants. Auditors belong to category ‘A’ on the approved list of auditors published by the State Bank of Pakistan (SBP).

Assigned ratings incorporate the business and financial profile of the Company. During FY24, the Company’s brokerage revenue experienced a strong rebound, driven by higher industry volumes, supported by favorable market dynamics, and improved macroeconomic indicators, which extended in 6MFY25. Income from capital gains remains the major contributor to the revenue base, largely stemming from ready future transactions. With the increase in overall revenue, the operational efficiency witnessed an improvement. While the profitability of the Company dropped in FY24, it recovered significantly in 6MFY25, therefore maintaining positive outlook. Liquidity profile of the Company is considered sound while market risk is considered manageable, given the investment in equity securities relative to its equity base. Capitalization profile is supported by a low leveraged balance sheet along with higher equity base which has grown in line with the Company’s profitability over the years. Going forward, continued enhancement in profitability along with managing market risk as well as maintenance of liquidity and capitalization profile will remain important for the ratings.

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



Applicable Rating Criteria: Securities Firms:
https://docs.vis.com.pk/docs/SecuritiesFirm202007.pdf
VIS Issue/Issuer Rating Scale:
https://docs.vis.com.pk/docs/VISRatingScales.pdf

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 2025 VIS Credit Rating Company Limited . All rights reserved. Contents may be used by news media with credit to VIS .