DIST
Distilleries CompanyLAST · LKR
52W RANGE
Source: CSE, First Asia Securities Research. Data as of 20 Jun 2026, EOD.
- Market cap
- 262bn
- P/E (ttm)
- 15.6×
- EPS (ttm)
- 3.64
- Dividend yield
- 5.3%
- Return on equity
- 102.5%
- Beta
- 0.27
- Free float
- 48%
- 52W high
- 63.55
- 52W low
- 53.37
- 1D change
- −0.99%
- YTD return
- +3.5%
Distilleries Company is a constituent of the Colombo Stock Exchange. Preview data — live CSE feed pending.
FAS DESK · FIRST ASIA SECURITIES RESEARCH · 23 JUN 2026 · EOD
Defensive spirits leader, full price
- 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.
- 02
An inelastic product and pricing power deliver resilient cash flows; recovering real incomes support volumes.
- 03
The multiple already credits the quality, leaving the yield as the return.
- 04
At ~15.5× FY26E our LKR 60 target is modest; a defensive hold, not a re-rate.
| Metric | FY25A | FY26E | FY27E |
|---|---|---|---|
| Net profitLKR bn | 17.0 | 18.0 | 19.0 |
| EPSLKR | 3.6 | 3.8 | 4.0 |
| DPSLKR | 3.0 | 3.2 | 3.4 |
| P/E× | 15.8× | 15.0× | 14.2× |
| EPS growth% | — | +6.0% | +6.0% |
A = REPORTED · E = FAS ESTIMATE
Excise shock; volumes fall.
12× stressed EPS
Volumes stabilise; yield carries it.
15.5× FY26E
Income recovery lifts volumes.
17× FY26E
Does the quality justify 15.6×?
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.
Excise risk?
Alcohol taxes are an easy revenue lever.
Pricing power passes most through, but tax shocks dent volumes near-term.
A punitive excise hike.
Volume trajectory?
Down-trading and illicit alcohol pressure legal volumes.
Recovering incomes support stabilisation off a low base.
Continued legal-volume decline.
| Assumption | Value | Basis |
|---|---|---|
| FY26E EPS | LKR 3.9 | FY25 base +6% |
| Target multiple | ~15.5× FY26E | premium, in line |
| Dividend yield | 5.3% | supports the total return |
| 12-month target | LKR 60 | ≈15.5 × 3.9, rounded |
- 01Excise / regulationWATCH · Alcohol tax policy
- 02Illicit alcoholWATCH · Legal-volume share
- 03Valuation / premiumWATCH · Multiple vs history
- 04Real-income recoveryWATCH · Consumer spending
— GENERATED BY FIRST ASIA SECURITIES · NOT INVESTMENT ADVICE