Overview
CIC Holdings is a diversified Sri Lankan group spanning crop solutions, agri produce, livestock, industrial solutions and health and personal care. The latest quarter showed healthier operations, and CIC was added to the S&P SL20 in late June, raising its profile. The main tension today is that operating improvement has arrived while the share has sagged in recent months.
Price performance
The share fell 8.3% over three months and 18.9% over six months, trailing the ASPI’s -6.5% and -11.3%. Over one year CIC is up 7.7% versus the ASPI’s 9.3%. A 1:5 share subdivision on 22 Oct 2025 changed the share basis; use the restated returns for comparability, as as-traded history diverges due to the split rather than performance.
Valuation
CIC trades at 7.86x earnings, placing it at the 12th percentile versus diversified peers, i.e., toward the cheaper end. P/B is 1.18 and broadly mid-sector, while FY26 ROE was 14.9%. The dividend yield is 3.4%, supported by a moderate 26.4% payout and 3.79x cover.
News and sentiment
Coverage has been unusually heavy relative to CIC’s own baseline, with 10 material articles in 90 days at roughly 2.0x its norm. Press reports on 3-4 Aug highlighted 1Q FY27 revenue of LKR 22.03 billion and group PAT of LKR 1.81 billion, citing strength in Livestock, Industrial and Health & Personal Care. CIC was added to the S&P SL20 effective 22 June. A final dividend of LKR 0.50 per share went ex on 1 July 2026 and was paid on 20 July. Overall sentiment in the window was mixed-to-positive.
Financials
June-quarter margins improved year-on-year: gross margin was 27.3% versus 25.4% a year ago; operating margin was 14.5% versus 12.9%; net margin was 8.2% versus 7.0%. Revenue and net profit both grew year-on-year, with operating profit rising faster than sales. Below-the-line costs remained a notable drag. Against CIC’s own history, gross and net margins were middling for a June quarter, while operating margin was among its stronger recent prints. Balance sheet scale remained solid at over LKR 100 billion in assets and mid-50s billions in equity at June-end. Note that a 1:5 share subdivision on 22 Oct 2025 multiplied the share count, so per-share trends across that date must be adjusted.
Risks
Exposure is tilted to plantations and agriculture (about 76.5% of segment revenue per sector backdrop), where export-facing units face a 10% US tariff regime and weather can disrupt harvests. July inflation rose to 7.3%, flagging potential pressure on logistics and input costs. Finance and tax below the line remain a swing factor for earnings conversion.
Outlook
The next numbers are the Sep-2026 quarter, expected to be filed between 28 Oct 2026 and 28 Jan 2027. As at 6 August there are no other pending corporate actions disclosed. With market rates easing in recent weeks, watch whether the next filing shows any relief in below-the-line costs and whether top-line growth re-accelerates from a soft prior print.