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

DIST

Distilleries Company
BEVERAGE

LAST · LKR

56.89
−0.57 ▼ −0.99%
P/E 15.6× · YIELD 5.3% · ROE 102.5%

52W RANGE

53.3763.55
35% OF RANGE · YTD +3.5%
01 / DIST — 1 YearAS OF 20 JUN 2026 · EOD
PERIOD 1Y · 250 SESSIONS▼
The Call
NEUTRAL+5%
60.00LKR · 12-MO
15.5× FY26E

Volumes stabilise; yield carries it.

Risks to our view
02 /

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

Defensive spirits leader, full price

  1. 01

    Neutral, LKR 60 target: Distilleries dominates Sri Lankan spirits with an extraordinary ROE and a 5.3% yield, but at 15.6× the defensive quality is priced.

  2. 02

    An inelastic product and pricing power deliver resilient cash flows; recovering real incomes support volumes.

  3. 03

    The multiple already credits the quality, leaving the yield as the return.

  4. 04

    At ~15.5× FY26E our LKR 60 target is modest; a defensive hold, not a re-rate.

Where we differ from the street
Street viewOur viewWe change our mind if
Rich for a domestic beverage.Earns a premium, but it is full; the return is the dividend.A pull-back, or excise relief lifting volumes.
Alcohol taxes are an easy revenue lever.Pricing power passes most through, but tax shocks dent volumes near-term.A punitive excise hike.
Down-trading and illicit alcohol pressure legal volumes.Recovering incomes support stabilisation off a low base.Continued legal-volume decline.

— FIRST ASIA SECURITIES RESEARCH · NOT INVESTMENT ADVICE