Overview
ACL Plastics manufactures cable-grade PVC compounds for domestic and external cable and electrical markets, operating within the ACL Group. The June quarter marked a broad operating improvement: gross, operating and net margins were each the best recorded for a comparable June quarter, while operating profit and net profit both grew year-on-year.
Price performance
The price sits around the middle of its 52-week range, at 52.3% of the distance from the low to the high. Recent volatility has run below the company's own annual norm and trading volume has also been below its recent average. A 1:10 share subdivision became effective on 2025-12-29, so adjusted returns are the relevant measure rather than the unadjusted screen-price change.
Valuation
The 2.7% dividend yield is at the 35th sector percentile. The payout has been rising, from LKR 2.00 per share in FY2024 to LKR 2.50 in FY2025 and LKR 3.75 in FY2026, although the latest payout is covered 5.9 times by earnings.
News and sentiment
Coverage is thin: only one material company article appeared in the 90-day window, and it was positive, concerning the LKR 3.75 per-share first interim dividend. The dividend went ex on 2026-08-12 and is payable on 2026-09-02; the 1:10 share subdivision had already taken effect on 2025-12-29.
Financials
The operating-to-net profit bridge was positive by LKR 49 million below the operating line, rather than a drag, helping explain why net profit outpaced operating profit. Group equity attributable to owners reached LKR 4.71 billion at June, while the share count was 42.13 million versus 4.21 million before the 1:10 subdivision, so historical EPS changes are mechanically affected by the corporate action.
Risks
Balance-sheet leverage is currently low, with gearing at 0.0% of owners' equity and interest cover at 1,008 times. Liquidity is strong at a 16.49 current ratio, and no profit is attributed to minority shareholders. Manufacturing conditions were expanding in July, but the sector backdrop also includes export compliance pressures and elevated energy-driven inflation of 7.2%.
Outlook
The latest data cannot establish whether the cash-conversion weakness was temporary or whether it will recur. Lower market interest rates are a supportive backdrop, but ACL Plastics already reports minimal debt, so the next filing's cash flow and operating result matter more than a potential finance-cost benefit.