Overview
ACL Plastics manufactures cable-grade PVC compounds for the cable and electrical industry. The most important change is operational: the March 2026 quarter delivered record profitability and sharply higher profits, with only a modest drag from finance costs and tax. This is an operating story rather than a below-the-line one.
Price performance
Over one year the share rose 103.2% versus the ASPI’s 9.3%. Over six months it fell 17.6% against the index’s -11.3%. A 1:10 share split on 2025-12-29 restates history; the divergence between restated and as-traded returns reflects mechanics, not dilution.
Valuation
P/E is 7.63, at the 5th percentile within manufacturing (sector median 12.75). P/B is 1.41 versus a sector median 1.8. ROE for FY2025 was 12.7%. Together these suggest the current multiple sits well below peers despite improved profitability; a re-rating case exists if execution holds.
News and sentiment
Coverage is thin: 1 material article in the past 90 days, and it was positive. A first interim dividend of LKR 3.75 per share goes ex on 2026-08-12 and pays on 2026-09-02. No other company-specific developments were reported.
Financials
In the March 2026 quarter revenue rose 21.4% year-on-year to LKR 802 million. Operating margin reached 34.9%, the best of 12. Below-the-line items were a modest LKR 24.2 million drag, underscoring that the profit step-up was operational. Per-share figures are not comparable across the December 2025 1:10 split, so judge performance on absolute amounts. For the last full year (FY2025), net margin was 19.0% and operating margin 25.1%, with net profit up 2.0% year-on-year, indicating that the latest quarter’s margins are a marked improvement versus the recent annual baseline.
Risks
The share fell 17.6% over six months, indicating sensitivity to sentiment even after strong prints. Income appeal is modest at present given recent dividend signals and a sector median yield of 3.3% that sits above many manufacturers. News flow is thin, so surprises may move the stock more than usual.
Outlook
Two dated catalysts are ahead as at 2026-08-06: the ex-dividend on 2026-08-12 and the next results for the June 2026 quarter, due by 2026-10-28. The filing will show whether March’s record operating margin translates into sustained earnings momentum in the new financial year.