Karachi, March 22, 2016: JCR-VIS Credit Rating Company Ltd. (JCR-VIS) has assigned initial entity ratings to Topline Securities (Private) Limited (TSPL) of ‘A-/A-2’ (Single A-Minus/A-Two). Outlook on the assigned ratings is ‘Stable’.
TSPL, incorporated in 2001, is engaged in provision of equity brokerage services along with corporate finance & advisory. Shareholding structure of the company is split between individuals including the CEO/Chairman himself. Organizational infrastructure is expected to improve as the company seeks to list itself on the local bourse.
The company serves high net worth individuals, domestic and foreign institutions with client base largely being institutional in nature. Revenue has showcased growth over past half-decade on the back of greater proportion of income from higher margin foreign institutions. Sustainability of foreign business will be tested over time. Going forward, management foresees greater revenues to emanate from corporate finance & advisory activities.
Accumulation of retained earnings has enabled the company to build its equity base. Risk profile of the institution quantified by factors such as gearing, extent of margin financing through margin trading system and level of proprietary book being managed is considered favorable vis-à-vis peers.
For further information on this rating announcement, please contact the undersigned (Ext: 508) or Mr. Jamal Abbas Zaidi (Ext: 516) at 021-35311861-71 or fax to 021-35311872-3.
Mohammed Khalid Ali
Applicable rating criteria: Methodology - Securities Firms Rating (May 2015)
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