Sri Lanka Telecom - Earnings Review Q2FY2017
We are currently of the view that the competitive position of SLT has been at threat from the industry; nevertheless the entity yet remains a major player in the industry. Our expectation for the company is to experience fluctuations from these competitive threats which we expect will reflect in the top lines and the profitability of the company. The group’s multiples, given its trading significantly (24%) below net book value and P/E multiples as a result of depressed share price, do appear to offer a potential opportunity, but we are cautious about the optimism of the group given the competitive nature of the industry and the operational cost and technological investment requirement. As such we estimate a short term price target for the entity of LKR 30.00 and therefore carry a hold recommendation on the counter at current price levels.
Candor Equities Limited is licensed and regulated by the Securities Exchange Commission (SEC) of Sri Lanka and is a Trading Member of the Colombo Stock Exchange (CSE). We assist both local and foreign individual and institutional investors with their listed Equity and Debt trading on the Colombo Stock Exchange.
We are a fully fledged financial services group of companies based in Colombo. The newly branded Candor came into commercial existence in May 2013 with EPIL’s acquisition of Heraymila Group Sri Lanka which was in operation since 2010. Candor’s immediate parent is the Dubai International Financial Centre (DIFC) based Eagle Proprietary Investments Limited (EPIL). Our ultimate parent is the National Industries Group (NIG), one of the largest listed companies on the Kuwait Stock Exchange. Candor’s business domain is strengthened with operating licenses comprising of Stock Broking, Asset Management, Investment Management and Corporate Financing, all vital cogs in Sri Lanka’s service sector driven macro economy.
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