Dialog Axiata PLC (DIAL.N0000) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

Dialog Axiata PLC

Why is Dialog Axiata PLC ?

Poor long term growth as Operating profit has grown by an annual rate 19.73% of over the last 5 years

Positive results in Dec 25

OPERATING CASH FLOW(Y) Highest at LKR 65,527.32 MM
DIVIDEND PAYOUT RATIO(Y) Highest at 234.38%
RAW MATERIAL COST(Y) Fallen by -16.75% (YoY)

With ROE of 28.71%, it has a expensive valuation with a 3.41 Price to Book Value

The stock is trading at a discount compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of 138.41%, its profits have risen by 127.1% ; the PEG ratio of the company is 0.1

Market Beating performance in long term as well as near term

Along with generating 138.41% returns in the last 1 year, the stock has outperformed Sri Lanka CSE All Share in the last 3 years, 1 year and 3 months

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Dialog Axiata PLC should be less than 10%
Overall Portfolio exposure to Telecom - Equipment & Accessories should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Telecom - Equipment & Accessories)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is Dialog Axiata PLC for you?

Low Risk, High Return

Absolute

Risk Adjusted

Volatility

Dialog Axiata PLC

138.41%

7.97

23.99%

Sri Lanka CSE All Share

41.16%

2.63

15.67%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

8.38%

EBIT Growth (5y)

19.73%

EBIT to Interest (avg)

4.65

Debt to EBITDA (avg)

0.99

Net Debt to Equity (avg)

0.83

Sales to Capital Employed (avg)

0.97

Tax Ratio

24.64%

Dividend Payout Ratio

66.37%

Pledged Shares

Institutional Holding

ROCE (avg)

14.47%

ROE (avg)

11.23%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

3.41

EV to EBIT

9.82

EV to EBITDA

5.15

EV to Capital Employed

2.24

EV to Sales

1.93

PEG Ratio

0.11

Dividend Yield

0.03%

ROCE (Latest)

22.83%

ROE (Latest)

28.71%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bearish

Bollinger Bands

Bullish

Moving Averages

Bullish (Daily)

KST

Mildly Bearish

Bullish

Dow Theory

No Trend

OBV

No Trend

Mildly Bullish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

11What is working for the Company

OPERATING CASH FLOW(Y)

Highest at LKR 65,527.32 MM

DIVIDEND PAYOUT RATIO(Y)

Highest at 234.38%

RAW MATERIAL COST(Y)

Fallen by -16.75% (YoY

NET PROFIT(9M)

Higher at LKR 18,801.86 MM

DEBT-EQUITY RATIO (HY)

Lowest at 67.34 %

INVENTORY TURNOVER RATIO(HY)

Highest at 46.98 times

DIVIDEND PER SHARE(HY)

Highest at LKR 4.14

NET SALES(Q)

Highest at LKR 46,531.4 MM

PRE-TAX PROFIT(Q)

Highest at LKR 8,858.34 MM

-2What is not working for the Company

INTEREST(HY)

At LKR 6,378.03 MM has Grown at 64.68%

Here's what is working for Dialog Axiata PLC

Operating Cash Flow

Highest at LKR 65,527.32 MM and Grown

In each year in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (LKR MM)

Net Sales

Highest at LKR 46,531.4 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (LKR MM)

Pre-Tax Profit

Highest at LKR 8,858.34 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (LKR MM)

Debt-Equity Ratio

Lowest at 67.34 %

in the last five Semi-Annual periods

MOJO Watch

The company has been reducing its borrowing as compared to equity capital

Debt-Equity Ratio

Inventory Turnover Ratio

Highest at 46.98 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Dividend per share

Highest at LKR 4.14

in the last five years

MOJO Watch

Company is distributing higher dividend from profits generated

DPS (LKR)

Net Profit

Higher at LKR 18,801.86 MM

than preceding 12 month period ended Dec 2025

MOJO Watch

In the nine month period the company has already crossed sales of the previous twelve months

Net Profit (LKR MM)

Dividend Payout Ratio

Highest at 234.38%

in the last five years

MOJO Watch

Company is distributing higher proportion of profits generated as dividend

DPR (%)

Raw Material Cost

Fallen by -16.75% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has improved; this may lead to a rise in profit margin

Raw Material Cost as a percentage of Sales

Here's what is not working for Dialog Axiata PLC

Interest

At LKR 6,378.03 MM has Grown at 64.68%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (LKR MM)