SLTL
Sri Lanka TelecomLAST · LKR
52W RANGE
Source: CSE, First Asia Securities Research. Data as of 20 Jun 2026, EOD.
- Market cap
- 155bn
- P/E (ttm)
- 14.0×
- EPS (ttm)
- 6.14
- Dividend yield
- 0.9%
- Return on equity
- 11.2%
- Beta
- 0.15
- Free float
- 22%
- 52W high
- 108.83
- 52W low
- 81.71
- 1D change
- −0.75%
- YTD return
- −10.6%
Sri Lanka Telecom is a constituent of the Colombo Stock Exchange. Preview data — live CSE feed pending.
FAS DESK · FIRST ASIA SECURITIES RESEARCH · 23 JUN 2026 · EOD
Privatisation optionality against a structural drag
- 01
Neutral, LKR 92 target: SLTL trades at 14× with a sub-1% yield and an 11% ROE — fairly valued, with the call hinging on the long-mooted privatisation.
- 02
The fixed-line legacy is a structural drag; mobile and broadband growth only partly offset it.
- 03
State ownership and a thin yield limit the appeal absent a stake sale.
- 04
At ~14× FY26E our LKR 92 target is modest; the optionality is real but unpredictable.
| Metric | FY25A | FY26E | FY27E |
|---|---|---|---|
| Net profitLKR bn | 11.0 | 12.0 | 13.0 |
| EPSLKR | 6.1 | 6.6 | 7.1 |
| DPSLKR | 0.7 | 0.7 | 0.7 |
| P/E× | 14.1× | 13.0× | 12.1× |
| EPS growth% | — | +8.0% | +8.0% |
A = REPORTED · E = FAS ESTIMATE
Privatisation stalls; fixed-line drag deepens.
11× stressed EPS
Steady growth; optionality embedded.
14× FY26E
A stake sale crystallises a strategic premium.
re-rate on privatisation
Will privatisation happen?
An IMF-linked stake sale re-rates it.
It is the key upside, but timing is uncertain and politically fraught — not a base case.
A concrete, signed divestment process.
Can growth offset fixed-line decline?
Broadband saves the story.
It cushions, but does not fully offset the legacy drag.
Broadband growth clearly outrunning fixed-line erosion.
Is the multiple fair?
14× is high for an 11% ROE state telco.
Fair, with privatisation optionality embedded; without it, full.
A de-rating as the privatisation premium fades.
| Assumption | Value | Basis |
|---|---|---|
| FY26E EPS | LKR 6.6 | FY25 base +8% |
| Target multiple | ~14× FY26E | in line, privatisation optionality |
| Dividend yield | 0.9% | thin |
| 12-month target | LKR 92 | ≈14 × 6.6, rounded |
- 01Privatisation timing (catalyst)WATCH · Government divestment process
- 02Fixed-line structural declineWATCH · Segment revenue mix
- 03Capex / 5GWATCH · Capex intensity
- 04State-ownership overhangWATCH · Government stake, governance
— GENERATED BY FIRST ASIA SECURITIES · NOT INVESTMENT ADVICE
| Symbol | Last | Chg % | P/E | M. Cap | 1Y |
|---|---|---|---|---|---|
| DIALDialog Axiata | 45.92 | −1.73% | 16.3× | 422bn | |
| SLTLSri Lanka Telecom— THIS PAGE | 86.08 | −0.75% | 14.0× | 155bn |
Source: CSE, First Asia Securities Research. Data as of 20 Jun 2026, EOD.