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

LOLC

LOLC Holdings
DIVERSIFIED FINANCIALS

LAST · LKR

528.00
+3.99 ▲ +0.76%
P/E 8.1× · YIELD 0.0% · ROE 3.8%

52W RANGE

504.00640.00
18% OF RANGE · YTD −5.2%
01 / LOLC — 1 YearAS OF 20 JUN 2026 · EOD
PERIOD 1Y · 250 SESSIONS▼
The Call
NEUTRAL+6%
560.00LKR · 12-MO
8.6× FY26E

Gradual ROE recovery; no payout yet.

Risks to our view
02 /

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

Cheap on paper, but returns must recover first

  1. 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.

  2. 02

    The diversified-financials and overseas-microfinance footprint is a recovery play on lower rates and improving credit.

  3. 03

    Until ROE rebuilds and the payout resumes, there is no income to wait on.

  4. 04

    At ~8.6× FY26E our LKR 560 target is modest; we want evidence of a return to double-digit ROE before turning constructive.

Where we differ from the street
Street viewOur viewWe change our mind if
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.
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.
No payout signals stress.It reflects capital rebuild post-crisis; resumption would be the re-rating catalyst.A clear payout-resumption signal.

— FIRST ASIA SECURITIES RESEARCH · NOT INVESTMENT ADVICE