DIAL
Dialog AxiataLAST · LKR
52W RANGE
Source: CSE, First Asia Securities Research. Data as of 20 Jun 2026, EOD.
- Market cap
- 422bn
- P/E (ttm)
- 16.3×
- EPS (ttm)
- 2.81
- Dividend yield
- 3.3%
- Return on equity
- 28.4%
- Beta
- 0.82
- Free float
- 41%
- 52W high
- 48.57
- 52W low
- 41.75
- 1D change
- −1.73%
- YTD return
- +3.7%
Dialog Axiata is a constituent of the Colombo Stock Exchange. Preview data — live CSE feed pending.
FAS DESK · FIRST ASIA SECURITIES RESEARCH · 23 JUN 2026 · EOD
Market leader, priced for its quality
- 01
Neutral, LKR 50 target: Dialog is the telecom leader with a 28% ROE, but at 16× — the largest cap on the board — the quality is in the price.
- 02
Data growth, a consolidated market and falling rates support steady earnings; the recovery is well understood.
- 03
A 3.3% yield is adequate but not the case at this multiple.
- 04
At ~16× FY26E our LKR 50 target is modest; we would add on a pull-back.
| Metric | FY25A | FY26E | FY27E |
|---|---|---|---|
| Net profitLKR bn | 26.0 | 29.0 | 32.0 |
| EPSLKR | 2.8 | 3.1 | 3.4 |
| DPSLKR | 1.5 | 1.6 | 1.7 |
| P/E× | 16.4× | 14.8× | 13.5× |
| EPS growth% | — | +10.0% | +10.0% |
A = REPORTED · E = FAS ESTIMATE
Price war or capex step-up; multiple de-rates.
12× stressed EPS
Steady data growth; fairly valued.
16× FY26E
Growth re-accelerates; premium expands.
18× FY26E
Does a 28% ROE justify 16×?
The premium to the market is steep.
The franchise earns a premium, but 16× is full — hence Neutral.
A pull-back, or data-led growth re-accelerating.
Is market consolidation a tailwind?
Fewer players, better pricing.
Yes — rational competition supports margins, but it is already priced.
A price war or a new entrant.
Capex versus cash returns?
5G and network capex drain cash.
Capex is manageable against strong cash flow; the payout is sustainable.
A capex step-up that cuts the payout.
| Assumption | Value | Basis |
|---|---|---|
| FY26E EPS | LKR 3.1 | FY25 base +10% |
| Target multiple | ~16× FY26E | premium, broadly in line |
| Dividend yield | 3.3% | adequate, not the case |
| 12-month target | LKR 50 | ≈16 × 3.1, rounded |
- 01Valuation / premiumWATCH · Multiple vs history
- 02Competition / pricingWATCH · ARPU, market structure
- 03Capex / 5GWATCH · Capex intensity, free cash flow
- 04Rupee / imported equipmentWATCH · LKR/USD
— GENERATED BY FIRST ASIA SECURITIES · NOT INVESTMENT ADVICE
| Symbol | Last | Chg % | P/E | M. Cap | 1Y |
|---|---|---|---|---|---|
| DIALDialog Axiata— THIS PAGE | 45.92 | −1.73% | 16.3× | 422bn | |
| SLTLSri Lanka Telecom | 86.08 | −0.75% | 14.0× | 155bn |
Source: CSE, First Asia Securities Research. Data as of 20 Jun 2026, EOD.