MELS
MelstacorpLAST · LKR
52W RANGE
Source: CSE, First Asia Securities Research. Data as of 20 Jun 2026, EOD.
- Market cap
- 217bn
- P/E (ttm)
- 11.3×
- EPS (ttm)
- 17.22
- Dividend yield
- 3.5%
- Return on equity
- 12.1%
- Beta
- 0.55
- Free float
- 53%
- 52W high
- 224.31
- 52W low
- 179.39
- 1D change
- +1.08%
- YTD return
- −8.4%
Melstacorp is a constituent of the Colombo Stock Exchange. Preview data — live CSE feed pending.
FAS DESK · FIRST ASIA SECURITIES RESEARCH · 23 JUN 2026 · EOD
Holdco discount on a spirits-anchored portfolio
- 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×.
- 02
The defensive spirits core provides ballast while the diversified arms gear to the recovery.
- 03
A persistent holdco discount to the sum of the parts caps the re-rate absent a catalyst.
- 04
At ~11.5× FY26E our LKR 210 target is modest; we would need a value-unlock to turn constructive.
| Metric | FY25A | FY26E | FY27E |
|---|---|---|---|
| Net profitLKR bn | 19.0 | 21.0 | 23.0 |
| EPSLKR | 17.3 | 18.7 | 20.2 |
| DPSLKR | 6.7 | 7.1 | 7.5 |
| P/E× | 11.3× | 10.4× | 9.7× |
| EPS growth% | — | +8.0% | +8.0% |
A = REPORTED · E = FAS ESTIMATE
Discount widens; excise hits the core.
9× stressed EPS
Steady core; discount holds.
11.5× FY26E
Value-unlock narrows the discount.
13× FY26E
Will the holdco discount close?
Simplification unlocks NAV.
Possible, but the discount has persisted; it needs a concrete catalyst.
A divestment or restructuring that crystallises value.
Is the spirits ballast enough?
Defensive core, cyclical arms — balanced.
Yes, but balance means steady, not a re-rate.
A diversified arm turning into a growth driver.
Capital allocation?
Holdco capital risks value erosion.
Track record is reasonable; the discount already reflects skepticism.
Capital into low-return ventures.
| Assumption | Value | Basis |
|---|---|---|
| FY26E EPS | LKR 18.6 | FY25 base +8% |
| Target multiple | ~11.5× FY26E | holdco discount persists |
| Dividend yield | 3.5% | supports a modest return |
| 12-month target | LKR 210 | ≈11.5 × 18.6, rounded |
- 01Holdco discountWATCH · NAV gap, capital allocation
- 02Excise on spirits coreWATCH · Alcohol tax policy
- 03Diversified-arm executionWATCH · Segment results
- 04Rupee / inputsWATCH · LKR/USD
— GENERATED BY FIRST ASIA SECURITIES · NOT INVESTMENT ADVICE
| Symbol | Last | Chg % | P/E | M. Cap | 1Y |
|---|---|---|---|---|---|
| JKHJohn Keells Holdings | 22.60 | +0.09% | 29.4× | 358bn | |
| MELSMelstacorp— THIS PAGE | 195.27 | +1.08% | 11.3× | 217bn |
Source: CSE, First Asia Securities Research. Data as of 20 Jun 2026, EOD.