Overview
Acme Printing and Packaging PLC manufactures flexible packaging for tea, cigarettes, confectionery, milk powder, pharmaceuticals and other consumer products, serving local and export clients. The Group highlights quality and food-safety certifications including ISO 9001:2015, ISO 22000:2018 and FSSC 22000 v5.1, alongside initiatives in compostable packaging, ink reduction, lean manufacturing and training. Recent corporate actions point to an active balance sheet cleanup and footprint reset. A 6-for-1 rights issue on 5 February 2026 multiplied the share count, and ACME agreed to sell its Piliyandala factory for LKR 630 million on 28 April 2026 as part of restructuring. The company also announced a plan to cut stated capital by LKR 1.6 billion, from LKR 2.26 billion to LKR 665 million, to offset accumulated losses, subject to shareholder approval.
Price performance
The share closed at LKR 4.50. On a restated basis, returns are 1 week up 7.14 percent, 1 month down 15.09 percent, 3 months down 27.42 percent, 6 months up 46.91 percent and 1 year up 267.28 percent, within a 52 week range of LKR 1.18 to LKR 14.20. Unadjusted screen-price returns diverge, with 1 year down 13.46 percent. The gap is mechanical, driven by the 6-for-1 rights issue at LKR 2.50 on 5 February 2026, which multiplied the share count and diluted the per-share history. Average 20 day volume is 423,052 shares. Against the ASPI, which is up 12.46 percent over 1 year and down 5.27 percent over 1 month, ACME has been far more volatile, reflecting corporate actions and ongoing restructuring.
Valuation
At LKR 4.50, market capitalisation is LKR 2.99 billion. Earnings are negative, so P E is not meaningful, with EPS at -1.76. Price to book is 0.67 times based on a book value per share of LKR 6.758 in the valuation dataset, a large discount to the manufacturing group median P B of 1.77 and with peers trading around a median P E of 12.87. Dividend yield is 0.00 percent versus the peer median of 3.14 percent, consistent with balance sheet repair and losses. Beta to the ASPI is 0.40, implying relatively low market sensitivity. The discount likely signals investor caution about sustained losses and recent dilution rather than a clear margin of safety without evidence of operating recovery.
News and sentiment
News flow over the last quarter has been dominated by restructuring steps and corporate housekeeping. ACME disclosed a plan to cut stated capital by LKR 1.6 billion to LKR 665 million to eliminate retained losses, pending EGM approval (12 May 2026). The company signed a sale purchase agreement to sell its Piliyandala factory for LKR 630 million on 28 April 2026 as part of its restructuring. Trading in ACME was halted on 13 March 2026 pending disclosure around the rights process, and a deviation in public holding was noted on 24 March 2026. The monitored 90 day window shows 3 material articles, all neutral. A director appointment at an unrelated company references ACME but has limited operational impact.
Financials
Results remain volatile with persistent losses. For the year to 31 March 2025, revenue was LKR 1,196.4 million and the net loss was LKR 405.9 million, with total equity negative at LKR 518.5 million. Quarterly performance weakened through 2025, with a brief net profit of LKR 16.1 million in the December 2025 quarter. In the quarter to 31 March 2026, revenue was LKR 209.3 million, gross profit turned to a loss of LKR 16.4 million, operating loss was LKR 253.1 million and the net loss was LKR 313.5 million, with EPS at -1.39. Notably, total equity improved to LKR 508.2 million by 31 March 2026, while shares outstanding jumped to 665.0 million from 95.0 million, reflecting the rights issue. Given this share-count change, judge trends on absolute revenue and profit, not per-share figures.
Risks
Key risks include loss-making operations and margin pressure, evidenced by a gross loss in the March 2026 quarter and a net loss of LKR 313.5 million. The 6-for-1 rights issue materially diluted existing holders and signals dependence on external capital. The planned LKR 1.6 billion capital reduction highlights accumulated losses, while the sale of the Piliyandala factory for LKR 630 million may reduce capacity or add execution complexity during restructuring. Dividend capacity is absent at a 0.00 percent yield. Governance and liquidity signals include a trading halt on 13 March 2026 and a deviation in public holding disclosed on 24 March 2026. Price volatility is high, with a LKR 1.18 to LKR 14.20 52 week range.
Outlook
ACME’s near term trajectory hinges on executing its restructuring and restoring operating margins. The rights issue has repaired equity to LKR 508.2 million and increased shares to 665.0 million, and the agreed LKR 630 million asset sale could strengthen liquidity once completed. However, the latest quarter shows a gross loss and a net loss of LKR 313.5 million, so operational turnaround remains to be demonstrated. Valuation at 0.67 times book and a low beta of 0.40 suggest scope for rerating if margins and cash generation improve, but the absence of dividends and recent dilution temper sentiment. Evidence of sustained gross margin recovery and successful capital restructuring would be the primary catalysts to shift the balance of risks positively.