Thursday, June 21, 2012

DIAL-Data Driven-21June2012 - BUY

 
DIAL-Data Driven-21 June 2012 –BUY
CAL’s 2013E price target is LKR 9.6 based on a 34% recurrent 2012-14E EPS CAGR and a 8.2x PER (+54%)
 
 
·  CAL’s 2012E fair value for DIAL is LKR 8.6 (+41%) based on a DCF valuation


·  DIAL: A one-stop shop in Sri Lanka…

· …a market primed for mobile broadband uptake

· Ideally positioning it to benefit from Sri Lanka data growth (fixed 4% + mobile 55% 2012-14E CAGR)…

· …off the back of its large mobile subscriber base (c.7.4mn in 1Q2012)

· DIAL’s telecom SBU continues to be the backbone for growth (c.84% of revenues in 2014E)

·Foreign currency earnings offset potential impact from further LKR depreciation
 
source - CAL Research


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