Overview
ACL Cables PLC is a leading Sri Lanka manufacturer of electrical cables and conductors founded in 1962, supplying LV power cables, control and telecommunication cables, and medium HV conductors. It serves institutional projects and a nationwide retail network, and is expanding branded switches and MCB offerings alongside product innovations such as the Super PVC range focused on safety and energy efficiency. The business operates with an integrated manufacturing platform and has group subsidiaries, including Cable Solutions PLC listed on the CSE. The company emphasizes product quality, customer satisfaction and sustainability, and has earned recognition for export performance and ethical trading. Its position across institutional and retail channels provides diversified demand exposure to both government or large private projects and consumer end markets.
Price performance
ACL.N0000 closed at LKR 96.00 on 2026-07-28, within a 52-week range of LKR 52.42 to LKR 107.00, on average 20-day volume of 176,648 shares. Restated returns are 1 week 1.59%, 1 month -4.0%, 3 months -2.44%, 6 months -8.57%, and 1 year 84.62%. As traded, the 1-year return is -38.46%. The divergence is mechanical due to a 1:3 share split effective 2025-12-29, which tripled shares outstanding from 239.57 million to 718.72 million. Against the ASPI, ACL outperformed over 1 year versus 12.46% but moved broadly in line over 6 months versus -10.14%. Beta to the ASPI is 1.0495, implying market-like volatility. ACL’s addition to the S&P SL20 effective 22 June may support liquidity and index-linked flows.
Valuation
At LKR 96.00, ACL’s market cap is LKR 69.00 billion. Trailing EPS is LKR 9.13, implying a P/E of 10.51 versus the manufacturing group median of 12.95. Book value per share is LKR 128.58 for a P/B of 0.75, a wide discount to the sector median P/B of 1.77. The indicated dividend yield is 0.52%, below the median of 3.39%. Relative to several large peers in manufacturing that trade around P/E multiples near or above this level, ACL’s combination of below-median P/E and P/B suggests the market discounts either cyclical risks or margin sustainability. Inclusion in the S&P SL20 could narrow the discount if earnings resilience persists. Overall, the multiple set prices in caution but leaves room for re-rating if margins stabilize.
News and sentiment
Over the last 90 days, there were 7 material ACL-related articles with 1 positive, 4 negative and 2 neutral. A clear positive was the CSE’s addition of ACL Cables to the S&P SL20 effective 22 June. Several market-wide down days cited ACL among active or contributing names, reflecting broad risk-off episodes tied to Middle East tensions and higher oil, with foreign net selling reported on multiple sessions such as about Rs 56 million on 2026-07-14 and Rs 154.6 million on 2026-06-23. On 2026-04-28, ACL contributed Rs 91.8 million to turnover as the market firmed intraday. The overall tone has been mixed to slightly negative, driven more by macro headlines than company-specific issues, suggesting sentiment headwinds rather than fundamental deterioration.
Financials
Group revenue continued to scale from LKR 9.45 billion in 2024-09 to LKR 12.22 billion in 2026-03. Quarterly net profit moved from LKR 1.87 billion in 2025-06 to LKR 1.73 billion in 2025-09, LKR 2.11 billion in 2025-12, and LKR 1.84 billion in 2026-03. The latest quarter showed margin compression: gross profit fell to LKR 2.27 billion from LKR 3.27 billion and operating profit to LKR 2.22 billion from LKR 2.56 billion, on broadly flat revenue. For the year ended 2025-03-31, net profit was LKR 5.42 billion. The four most recent quarters sum to LKR 7.55 billion in net profit. Total assets were LKR 51.88 billion and equity LKR 43.22 billion at 2026-03. A 1:3 share split on 2025-12-29 lifted shares outstanding to 718.72 million, reducing reported EPS per quarter despite stable cash earnings.
Risks
Recent quarterly margin compression, with gross profit down from LKR 3.27 billion to LKR 2.27 billion and operating profit down from LKR 2.56 billion to LKR 2.22 billion, highlights input-cost or pricing pressure risk. News flow skewed negative in the last 90 days, with 4 negative articles versus 1 positive, amid macro shocks linked to Middle East tensions and oil moves, which also coincided with foreign net selling episodes. The 6-month share return of -8.57% and a beta of 1.0495 indicate market-sensitive trading. Dividend income support is modest at a 0.52% yield, and past per-share comparisons are clouded by the 1:3 split. Demand cyclicality across institutional projects and retail channels could amplify earnings volatility if macro conditions weaken.
Outlook
Momentum in revenue from LKR 9.45 billion in 2024-09 to LKR 12.22 billion in 2026-03, together with the LKR 7.55 billion sum of net profit across the latest four quarters, underscores earnings capacity. The near-term watchpoint is restoring margins after the 2026-03 compression, with resilience in operating profit critical if input costs remain elevated. Valuation support is notable at a P/E of 10.51 and P/B of 0.75 versus sector medians of 12.95 and 1.77. S&P SL20 inclusion from 22 June should aid liquidity and visibility. Strategically, ACL’s integrated manufacturing base and expansion in switches and MCBs complement its core cables franchise. If margins stabilize while revenue remains firm, the current discount could narrow; if pressure persists, the market may keep the multiple subdued.