VIS reaffirms entity ratings of Topline Securities Limited

November 25, 2024 (MLN): VIS Credit Rating Company Ltd. (VIS) has reaffirmed entity ratings of Topline Securities Limited at ‘A/A1’, according to the press release.

A long-term rating of ‘A’ signifies good credit quality, with adequate protection factors.

Risk factors may vary with possible changes in the economy. The short-term rating of A1 denotes a strong likelihood of timely repayment of short-term obligations with excellent liquidity factors.

The outlook on the assigned ratings is ‘Stable’. The previous rating action was announced on July 24, 2023.

Topline Securities Limited holding a Trading and Self-Clearing license, is engaged in the business of stock brokerage, commodity brokerage, underwriting, consultancy, book bidding, and advisory services.

The market risk of the company is largely muted as the majority of investments are held in money market funds.

The capitalization profile of the company draws support from its low-leveraged balance sheet, while the equity base has shown consistent growth in line with its profitability.

During FY24, the earning profile of the company experienced a rebound, driven primarily by strong growth in the brokerage revenue, while income from advisory operations was similar to that of last year.

Consequently, the operating efficiency of the company depicted improvement. The liquidity profile of the company is considered sound.

Going forward, maintenance of operational efficiency, liquidity, and capitalization profile will remain important for ratings.

External auditors of the company are M/s Naveed Zafar Ashfaq Jaffery & Co. – Chartered Accountants, which are “A” rated on the SBP’s panel of auditors.

Shareholding of Topline Securities Limited is primarily vested with Mr. Mohammad Sohail, who also serves as the CEO of the company.

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