FIRST ASIA SECURITIES
PakistanSri LankaPREV
EquitiesFixed Income
DATA AS OF 20 JUN 2026 · EOD

CARG

Cargills Ceylon
FOOD & RETAIL

LAST · LKR

649.41
−5.61 ▼ −0.86%
P/E 15.8× · YIELD 2.9% · ROE 25.6%

52W RANGE

619.24850.63
13% OF RANGE · YTD −17.0%
01 / CARG — 1 YearAS OF 20 JUN 2026 · EOD
PERIOD 1Y · 250 SESSIONS▼
The Call
NEUTRAL+8%
700.00LKR · 12-MO
15× FY26E

Consumer recovery; modern-trade share gains.

Risks to our view
02 /

FAS DESK · FIRST ASIA SECURITIES RESEARCH · 23 JUN 2026 · EOD

Consumer-recovery growth, premium multiple

  1. 01

    Neutral, LKR 700 target: Cargills is the leading food-and-retail play with a 26% ROE, geared to the consumer recovery — but at 15.8× the growth is priced.

  2. 02

    Modern-trade expansion and a recovering consumer drive double-digit earnings growth.

  3. 03

    The quality and growth are real, but the multiple already credits them.

  4. 04

    At ~15× FY26E our LKR 700 target is modest; we would add on a pull-back to play the consumer recovery.

Where we differ from the street
Street viewOur viewWe change our mind if
Rich for a domestic retailer.Growth and a 26% ROE earn a premium, but it is full at 15.8×.A pull-back, or growth re-accelerating beyond expectations.
Real incomes are still recovering.Modern-trade share gains compound the recovery; durable but priced.A consumer-spending relapse.
Store rollout drags near-term margins.Operating leverage improves margins as the network matures.Margins failing to expand with scale.

— FIRST ASIA SECURITIES RESEARCH · NOT INVESTMENT ADVICE