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Asiri Surgical Hospital PLC: research report

Fairly valuedneutralAug 7, 2026

AMSL fell 39% in three months with no fresh company news; at 9.7x earnings and 1.0x book it screens cheap, with cash generation the key check.

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Why balanced

  • Latest quarter net profit rose 11.6% year-on-year with an 11.1% net margin.
  • Valuation is undemanding at 9.7x P/E (P/B ~1.0).

Against this. Interest cover was 1.97x in FY2025, leaving little cushion if costs rise.

Net margin
11.1%sector 10.9%
from 10.7% a year earlier, revenue +7.4%
Return on equity
11.5%
twelve months to Jun 30, 2026, unaudited
P/E
8.0sector 10.8
earnings Rs 1.61 per share
P/B
0.92sector 1.41
book Rs 13.99 per share
Dividend yield
0.00%sector 0.00%
trailing twelve months

Current figures, updated daily from filings to Jun 30, 2026. The report below was written on Aug 7, 2026. Sector figures are the median of 6 listed companies in the same sector.

Overview

Asiri Surgical Hospital is a leading private surgical hospital in Sri Lanka, offering a wide range of specialties supported by modern operating theatres and diagnostics. The notable change is not in operations but in the market: the share price has sold off sharply without new company disclosures, while filings show steady like-for-like growth.

Price performance

As at 7 Aug 2026 the share closed at LKR 15.10. The stock fell 39.2% over three months versus the ASPI’s -7.1%, but is up 11.8% over one year versus the index’s 9.5%. It trades 44.9% below its 52‑week high and sits low in its range. Volume has cooled and short-term volatility is below its own 1‑year norm.

Valuation

P/E is 9.7 and P/B is roughly 1.0, both below typical healthcare sector medians. Return on equity is 4.1%. Dividend yield is 0.0, and the payout has been uneven: FY2025 DPS was LKR 0.30 versus LKR 2.10 in FY2022, with no dividend recorded for FY2023-FY2024.

News and sentiment

Direct coverage is thin. In the past 90 days there was 1 material article with positive sentiment, and there has been no company news in the last 30 days despite the sharp price move. Earlier, two CSE enforcement-action notices were filed on 13 Mar 2026. The last confirmed corporate action was a first interim dividend (ex 26 Sep 2024).

Financials

June quarter revenue and profit grew year-on-year, with net profit up 11.6% to LKR 226 million. Net margin was 11.1% versus 10.7% a year earlier, and gross margin printed 43.2%, near the top of its recent June records.

Full-year FY2025 was softer: net profit fell 49.9% year-on-year and ROE was 4.1%. Operating detail for the latest quarter is limited in the dataset, but finance costs in recent quarters have trended lower against FY2024 levels.

Risks

The tightest constraint is financing headroom: FY2025 interest cover was 1.97x. Cash quality was weak, with cash conversion at -0.18x and free cash flow of LKR -435 million. Liquidity is modest (current ratio 1.25). Leverage is moderate, with gearing at 37.1% of owners’ equity and total debt of LKR 2.40 billion. Minority interests are material (28.9% of group net profit), so group earnings overstate what accrues to AMSL shareholders.

Outlook

Next figures are due for the quarter to 30 Sep 2026, expected to be filed between 28 Oct 2026 and 26 Jan 2027. As at 7 Aug 2026, the key swing factors to watch are whether the recent margin gains persist and whether operating cash flow improves; easing market rates provide a backdrop that is consistent with lower finance costs, but the filing will show if that is arriving in AMSL’s numbers.

About this report. Generated on Aug 7, 2026 from market data up to Aug 7, 2026, 1 material news articles over 90 days and financials to Jun 30, 2026. Every figure is drawn from EquityLK's own data on this company. AI research can contain errors, so treat it as a starting point, not investment advice.

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