LOLC
LOLC HoldingsLAST · LKR
52W RANGE
Source: CSE, First Asia Securities Research. Data as of 20 Jun 2026, EOD.
- Market cap
- 249bn
- P/E (ttm)
- 8.1×
- EPS (ttm)
- 65.02
- Dividend yield
- 0.0%
- Return on equity
- 3.8%
- Beta
- 0.72
- Free float
- 33%
- 52W high
- 640.00
- 52W low
- 504.00
- 1D change
- +0.76%
- YTD return
- −5.2%
LOLC Holdings is a constituent of the Colombo Stock Exchange. Preview data — live CSE feed pending.
FAS DESK · FIRST ASIA SECURITIES RESEARCH · 23 JUN 2026 · EOD
Cheap on paper, but returns must recover first
- 01
Neutral, LKR 560 target: at 8.1× LOLC looks cheap, but a 3.8% ROE and no dividend mean the value is only real if returns recover.
- 02
The diversified-financials and overseas-microfinance footprint is a recovery play on lower rates and improving credit.
- 03
Until ROE rebuilds and the payout resumes, there is no income to wait on.
- 04
At ~8.6× FY26E our LKR 560 target is modest; we want evidence of a return to double-digit ROE before turning constructive.
| Metric | FY25A | FY26E | FY27E |
|---|---|---|---|
| Net profitLKR bn | 31.0 | 34.0 | 37.0 |
| EPSLKR | 65.2 | 71.7 | 78.9 |
| DPSLKR | 0.0 | 0.0 | 0.0 |
| P/E× | 8.1× | 7.4× | 6.7× |
| EPS growth% | — | +10.0% | +10.0% |
A = REPORTED · E = FAS ESTIMATE
ROE stays low; overseas credit deteriorates.
7.2× stressed EPS
Gradual ROE recovery; no payout yet.
8.6× FY26E
ROE rebuilds; dividend resumes.
9.5× FY27E
Is 8× a value opportunity?
A diversified financial at 8× is cheap.
Only if the 3.8% ROE recovers; on current returns it is fairly valued.
Two quarters of clearly rebuilding ROE.
Does the overseas book help or hurt?
Foreign microfinance adds risk and volatility.
It is both the growth engine and the risk; execution is the swing factor.
Credit costs spiking in the overseas book.
When does the dividend return?
No payout signals stress.
It reflects capital rebuild post-crisis; resumption would be the re-rating catalyst.
A clear payout-resumption signal.
| Assumption | Value | Basis |
|---|---|---|
| FY26E EPS | LKR 71.5 | FY25 base +10% |
| Target multiple | ~8.6× FY26E | modest re-rate from 8.1× |
| Dividend | none | return is ROE recovery + re-rate |
| 12-month target | LKR 560 | ≈8.6 × 71.5, rounded |
- 01ROE recoveryWATCH · Quarterly ROE, NIM
- 02Overseas credit qualityWATCH · Foreign-book NPLs
- 03No dividendWATCH · Payout policy
- 04Rupee / fundingWATCH · LKR/USD, funding costs
— GENERATED BY FIRST ASIA SECURITIES · NOT INVESTMENT ADVICE