CARG
Cargills CeylonLAST · LKR
52W RANGE
Source: CSE, First Asia Securities Research. Data as of 20 Jun 2026, EOD.
- Market cap
- 167bn
- P/E (ttm)
- 15.8×
- EPS (ttm)
- 41.18
- Dividend yield
- 2.9%
- Return on equity
- 25.6%
- Beta
- 0.17
- Free float
- 36%
- 52W high
- 850.63
- 52W low
- 619.24
- 1D change
- −0.86%
- YTD return
- −17.0%
Cargills Ceylon is a constituent of the Colombo Stock Exchange. Preview data — live CSE feed pending.
FAS DESK · FIRST ASIA SECURITIES RESEARCH · 23 JUN 2026 · EOD
Consumer-recovery growth, premium multiple
- 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.
- 02
Modern-trade expansion and a recovering consumer drive double-digit earnings growth.
- 03
The quality and growth are real, but the multiple already credits them.
- 04
At ~15× FY26E our LKR 700 target is modest; we would add on a pull-back to play the consumer recovery.
| Metric | FY25A | FY26E | FY27E |
|---|---|---|---|
| Net profitLKR bn | 11.0 | 12.0 | 13.0 |
| EPSLKR | 41.1 | 46.0 | 51.5 |
| DPSLKR | 18.5 | 20.0 | 21.6 |
| P/E× | 15.8× | 14.1× | 12.6× |
| EPS growth% | — | +12.0% | +12.0% |
A = REPORTED · E = FAS ESTIMATE
Consumer relapse; margins squeezed.
11× stressed EPS
Consumer recovery; modern-trade share gains.
15× FY26E
Growth re-accelerates; operating leverage.
17× FY26E
Does growth justify 15.8×?
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.
Is the consumer recovery durable?
Real incomes are still recovering.
Modern-trade share gains compound the recovery; durable but priced.
A consumer-spending relapse.
Margin pressure from expansion?
Store rollout drags near-term margins.
Operating leverage improves margins as the network matures.
Margins failing to expand with scale.
| Assumption | Value | Basis |
|---|---|---|
| FY26E EPS | LKR 46.1 | FY25 base +12% |
| Target multiple | ~15× FY26E | premium, broadly in line |
| Dividend yield | 2.9% | modest; growth is the case |
| 12-month target | LKR 700 | ≈15 × 46.1, rounded |
- 01Consumer-spending recoveryWATCH · Retail volumes, real incomes
- 02Valuation / premiumWATCH · Multiple vs history
- 03Expansion margin dragWATCH · Store economics, margins
- 04Rupee / input costsWATCH · LKR/USD, food prices
— GENERATED BY FIRST ASIA SECURITIES · NOT INVESTMENT ADVICE