PACRA Maintains Entity Ratings of JS Investments Limited

Lahore, December 22, 2017 (PPI-OT):The ratings reflect JSIL’s strong risk absorption capacity emanating from sound equity base and a debt free capital structure. The rating incorporates JSIL’s association with a strong commercial bank (JS Bank Limited) and Jahangir Siddiqui Company Limited which is the holding company of the underlying company. Lately the company has managed to improve its AUMs and stabilize the revenue stream. During the year Mr. Hasnain Raza Nensey took the leader ship role as CEO of the company. The new management has embarked upon a plan to beef up its system share by increasing the AUM base by collaborating with JS Bank. Integration into the parent bank (JS Bank) may support the company’s intrinsic growth plans.

To achieve this strategy, the company has developed products that will be beneficial for bank to sell. The company also plans to focus on SMA segment to capture the growing demand from provident and endowment funds. Furthermore, the company devices to focus on retail clients and to revive significant number of inactive accounts. The success of these initiatives is crucial though the desired outcome may stretch over a longer horizon. The company’s strong financial position permits gradual advancement towards its target.

The ratings remain dependent, alongside a debt-free capital structure, upon management’s ability to effectively execute its business strategy for growth in AUMs, in turn, augmenting competitive positioning in the industry. Herein, the challenge would be diversity of funds including contribution from the retail segment along with sustained improvement in fund’s performance. The company enjoys low financial risk due to deleveraged structure; any debt acquisition should be planned carefully.

For more information, contact:
Analyst
The Pakistan Credit Rating Agency Limited (PACRA)
Awami Complex, FB1, Usman Block New Garden Town,
Lahore – Pakistan
Tel: +9242 586 9504 -6
Fax: +9242 583 0425
Email: hammad.rashid@pacra.com
Web: www.pacra.com

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