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Digital Mobility Solutions Lanka PLC: research report

Moderately overvaluedbullishSep 3, 2026

PickMe's June-quarter net profit grew 45% year-on-year. Strong platform earnings are set against a 11.9x P/B multiple.

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Why bullish

  • June-quarter revenue increased 39.9% year-on-year while net margin improved to 25.1%.
  • Audited ROE was 57.5%, supported by a 1.12x cash-conversion ratio.
  • Debt was only 9.5% of owners' equity and interest cover was 65.27x.

Against this. The 11.91x P/B multiple is far above the sector median of 3.66x.

Operating margin
33.2%sector 16.5%
from 33.5% a year earlier
Net margin
25.1%sector 12.5%
from 24.3% a year earlier, revenue +39.9%
Return on equity
53.7%
twelve months to Jun 30, 2026, unaudited
P/E
21.5sector 21.5
earnings Rs 7.19 per share
P/B
11.52sector 4.03
book Rs 13.39 per share
Dividend yield
2.79%sector 0.88%
59.8% of earnings paid out

Current figures, updated daily from filings to Jun 30, 2026. The report below was written on Sep 3, 2026. Sector figures are the median of 6 listed companies in the same sector.

Overview

Digital Mobility Solutions Lanka operates the PickMe platform, connecting consumers with independent drivers, merchants and courier partners across mobility, delivery and commerce. The key change is that the platform has continued to convert revenue growth into expanding earnings while retaining a net-cash balance sheet.

Price performance

The share closed at LKR 160.00 on 3 September 2026. It fell 5.0% over three months against a 3.5% decline in the ASPI, but gained 36.5% over one year versus the index's 3.3% rise.

The price stood 74.5% of the way through its 52-week range. Recent annualised volatility was below its own one-year norm, while 20-day trading volume was modestly above the 60-day average.

Valuation

At 22.21x earnings, PKME trades below the telecom and IT peer median of 33.66x. Its 11.91x P/B is well above the sector median, but this is partly reconciled by the audited 57.5% ROE.

The dividend yield is 2.7%, below the sector median, although the recorded payout more than doubled in FY2026 from the preceding financial year. Sector percentile data are not supplied, so the data do not show PKME's exact position within the peer distribution.

News and sentiment

Direct coverage was normal rather than unusually elevated, with two articles in the past 30 days. The five material articles over 90 days were mostly positive, led by reported June-quarter growth and the FY2026 dividend declaration; the balance concerned board and trading disclosures.

The final LKR 2.60 dividend went ex on 1 July 2026 and was paid on 20 July 2026. The latest disclosures concern a board appointment and reconstitution of board subcommittees, with no reported operating change.

Financials

In the June 2026 quarter, revenue rose 39.9% year-on-year and net profit increased faster than revenue. Operating margin was 33.2%, marginally below 33.5% a year earlier, while net margin improved to 25.1% from 24.3%. Gross margin was not disclosed in either June comparison.

The LKR 202 million gap between operating and net profit remained a material drag from finance costs, tax and other below-the-line items. Operating margin was middling against the eight comparable group quarters on record, whereas net margin ranked among the company's best. Equity rose year-on-year and the share count was effectively unchanged, so the improvement in per-share earnings was not driven by dilution or a share-count change.

Risks

The main operating risk is exposure to transport-related cost pressure and consumer demand: fuel costs were reported to have surged in the market backdrop while August inflation reached 8.0%. The June-quarter news cited temporary fuel supply disruptions, although the company still reported growth.

Financial risk is comparatively limited. Gearing was 9.5% of owners' equity, interest cover was 65.27x, the current ratio was 2.39x and annual cash conversion was 1.12x. As at 3 September 2026, sector-wide PDPA provisions were set to become operational on 1 January 2027, raising compliance demands around data handling for digital platforms.

Outlook

As at 3 September 2026, the next scheduled catalyst is the filing for the quarter ending 30 September 2026, expected between 12 November 2026 and 2 March 2027. It will supersede the historical June figures and show whether platform growth continued through the reported fuel disruption backdrop.

The available data do not disclose segment-level profitability, customer retention, driver economics or merchant economics, so they cannot determine which PickMe vertical is responsible for the group's earnings growth.

About this report. Generated on Sep 3, 2026 from market data up to Sep 3, 2026, 5 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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