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

DIAL

Dialog Axiata
TELECOM

LAST · LKR

45.92
−0.81 ▼ −1.73%
P/E 16.3× · YIELD 3.3% · ROE 28.4%

52W RANGE

41.7548.57
61% OF RANGE · YTD +3.7%
01 / DIAL — 1 YearAS OF 20 JUN 2026 · EOD
PERIOD 1Y · 250 SESSIONS▲
The Call
NEUTRAL+9%
50.00LKR · 12-MO
16× FY26E

Steady data growth; fairly valued.

Risks to our view
02 /

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

Market leader, priced for its quality

  1. 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.

  2. 02

    Data growth, a consolidated market and falling rates support steady earnings; the recovery is well understood.

  3. 03

    A 3.3% yield is adequate but not the case at this multiple.

  4. 04

    At ~16× FY26E our LKR 50 target is modest; we would add on a pull-back.

Where we differ from the street
Street viewOur viewWe change our mind if
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.
Fewer players, better pricing.Yes — rational competition supports margins, but it is already priced.A price war or a new entrant.
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.

— FIRST ASIA SECURITIES RESEARCH · NOT INVESTMENT ADVICE