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

MELS

Melstacorp
CONGLOMERATE

LAST · LKR

195.27
+2.08 ▲ +1.08%
P/E 11.3× · YIELD 3.5% · ROE 12.1%

52W RANGE

179.39224.31
35% OF RANGE · YTD −8.4%
01 / MELS — 1 YearAS OF 20 JUN 2026 · EOD
PERIOD 1Y · 250 SESSIONS▼
The Call
NEUTRAL+8%
210.00LKR · 12-MO
11.5× FY26E

Steady core; discount holds.

Risks to our view
02 /

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

Holdco discount on a spirits-anchored portfolio

  1. 01

    Neutral, LKR 210 target: Melstacorp is a holdco anchored by the Distilleries spirits business, with beverages, telecoms and plantations alongside — fairly valued at 11.3×.

  2. 02

    The defensive spirits core provides ballast while the diversified arms gear to the recovery.

  3. 03

    A persistent holdco discount to the sum of the parts caps the re-rate absent a catalyst.

  4. 04

    At ~11.5× FY26E our LKR 210 target is modest; we would need a value-unlock to turn constructive.

Where we differ from the street
Street viewOur viewWe change our mind if
Simplification unlocks NAV.Possible, but the discount has persisted; it needs a concrete catalyst.A divestment or restructuring that crystallises value.
Defensive core, cyclical arms — balanced.Yes, but balance means steady, not a re-rate.A diversified arm turning into a growth driver.
Holdco capital risks value erosion.Track record is reasonable; the discount already reflects skepticism.Capital into low-return ventures.

— FIRST ASIA SECURITIES RESEARCH · NOT INVESTMENT ADVICE