Distilleries Company of Sri Lanka [DIST : LKR122.00], the leader in Sri Lanka’s locally manufactured hard liquor market is likely to witness growth in beverage sector earnings led by stable margins and a CAGR of 4% in volume growth. The increased stake in SPEN makes it a significant contributor to the bottom line which is expected to grow at a CAGR of 13% FY13-14E. We assign a target price of LKR191.0 with a total return of 62% with dividends on a 18 month period. BUY
Softlogic Research
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