March 30, 2025 Colombo Sri Lanka (LankaBIZ) – Asia Capital PLC on of the oldest listed companies in Sri Lanka established in 1991 is set for a remarkable financial turnaround in the upcoming fiscal year, buoyed by a significant Rs 783 million capital inflow from the sale of minority shareholdings in three companies. This strategic divestment, alongside a robust leadership team led by Chairman Yudy Kanagasabai and Managing Director Raju Raadha, positions the company for strong recovery in FY 2025/26.
The Colombo Stock Exchange (CSE) filing confirms that Asia Capital divested 10% stakes in Galle Heritage Lanka (Private) Limited, Marine Drive Hotels (Private) Limited, and Miriandhoo Maldives Resorts (Private) Limited. The Rs 783 million inflow has already begun to reflect positively on the company’s financial outlook. Earnings for the quarter ended March 31, 2025, are projected at Rs 560 million (EPS Rs 4.26), marking a sharp rebound from previous losses. For the full FY 2024/25, net earnings are forecast at Rs 126.06 million (EPS Rs 0.96), representing an impressive 153% year-on-year growth.
Despite a historically negative net asset value (NAV), Asia Capital’s NAV is set to improve significantly from negative Rs 10.39 to negative Rs 6.12—a 41% improvement. Market confidence is also evident in the stock’s trading trajectory, currently valued at Rs 3.70, with analysts projecting a potential range between Rs 4.80 and Rs 7.68 at a modest price-to-earnings (PE) ratio of 5-8x.
Asia Capital’s new leadership team is expected to drive aggressive strategic initiatives to fortify its financial base. Chairman Yudy Kanagasabai brings decades of experience in investment and corporate governance, while Managing Director Raju Radha is anticipated to spearhead growth through operational efficiency and capital restructuring. Their leadership is expected to be instrumental in steering the company toward profitability and shareholder value enhancement.
Further strengthening the company’s governance framework, Asia Capital has appointed three new Independent Non-Executive Directors as per its latest CSE disclosure. Effective March 25, 2025, the board welcomed Mr. Adrian Perera, Mr. Robert Bradley Rajapoopalan Emerson, and Mr. Ganesh Shanmugam. These appointments bring extensive experience in banking, finance, corporate strategy, and operational management, reinforcing the company’s commitment to improved oversight and strategic execution.
With the anticipated cash inflow strengthening liquidity and leadership laying out a clear roadmap for sustainable growth, Asia Capital PLC is poised for a promising turnaround in FY 2025/26. Investors and market watchers will keenly observe the firm’s next strategic moves as it aims to solidify its financial stability and unlock new growth opportunities.
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