Press Release

VIS Assigns Initial Entity Rating to Image Pakistan Limited

Karachi, April 15, 2025: VIS Credit Rating Company Limited (VIS) has assigned an initial entity ratings of ‘A-/A2’ (Single A minus/A two) to Image Pakistan Limited. Medium to long term rating of ‘A-’ indicates Good credit quality; Protection factors are adequate. Risk factors may vary with possible changes in the economy. Short term rating of 'A2' indicates Good likelihood of timely repayment of short-term obligations with sound short-term liquidity factors. Outlook on the assigned ratings is Stable.

Image Pakistan Limited (‘Image’ or ‘the Company’) is a public limited company incorporated in November, 1990, formerly known as Tri-Star Polyester Limited. The Company was previously engaged in production and sale of polyester filament yarn. In 2016, Company undertook a strategic shift, moving into the fashion retail sector under the brand name ‘Image’. As a result, the Company was renamed ‘Image Pakistan Limited’ in 2021. Image specializes in manufacturing and sale of premium, value-added embroidered garments for females. Significant shareholding of the Company is vested with the sole sponsor family.

The assigned ratings take into account the robust capital structure of the company, characterized by an almost complete absence of gearing alongside availability of sponsor support. In addition, the company has developed a strong niche for itself in the embroidered clothing niche which is visible in its strong sales growth since FY2021 combined with above-market gross margins.

However, the retail segment in Pakistan continues to face strong headwinds, as high inflation over the past few years has eroded purchasing power while the informal sector continues to put pressure on the organized sector through lower pricing. Going forward, Image’s rating will be influenced by its ability to tackle the macro-challenges while continuing its growth rate and maintaining a conservative gearing profile. The company will also have to improve its inventory management systems as finished good stock remains high with respect to sales.

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

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 .