Overview
C M Holdings PLC is a Sri Lankan diversified group spanning motor retail and services, an investment portfolio, and commercial property. The notable recent change is a weak March quarter after a profitable year, with operating profit slipping into loss and the net result turning negative.
Price performance
As of 2026-08-07 the share closed at LKR 38.80. It fell 20.8% over three months versus the ASPI's -7.1%.
The price sits 49.6% below its 52-week high and 605.5% above the low. Its range position is 46.6%. Recent volatility and trading volume are both quieter than this stock's own year.
Returns are restated for a share split in October 2025; the unadjusted one-year screen move reflects the split rather than fundamentals.
Valuation
The shares trade at 9.06x P/E and 0.98x P/B. Within diversified holdings they sit at the 29th percentile on P/E and 24th on P/B.
ROE for FY2026 was 10.7%. The dividend yield is 1.0%, and the payout has been broadly steady with a small dip in FY2026.
News and sentiment
Coverage was normal, with three material items in the last 90 days. A cash dividend of LKR 0.4 per share is confirmed. Ex-date is 2026-09-11 and payment is 2026-09-30.
The company also announced board changes and reconstituted board sub-committees.
Financials
March quarter revenue growth was strong year-on-year, but profitability deteriorated. Gross margin fell to 29.5% from 63.4% a year ago. Operating margin dropped to -16.8% from 59.1%. Net margin moved to -29.1% from -26.9%.
Against past March quarters, gross margin was among its worst, while operating and net margins were mid-pack. The quarter moved from profit to loss versus March 2025, and items below the line were a drag. For FY2026, wide full-year margins and strong top-line growth reflect the mix of investment and property income; ROE and payout are discussed in Valuation.
Risks
Cash generation is the lead risk: FY2026 cash conversion was -0.4x and free cash flow was LKR 310 million negative. Leverage is moderate, with gearing at 21.4% of equity and interest cover at 6.83x.
Exposure is skewed to consumer retail at 81%, while June vehicle import spend fell 27% month-on-month, a softer backdrop for motor-related activity.
Outlook
The next figure set is due now, with the June 2026 quarter expected by 2026-10-26. A first and final dividend goes ex on 2026-09-11.
As at 2026-08-07, T-bill yields had been falling for several weeks; if that persists, a softer rate backdrop would help ease the interest burden. The immediate swing factor is whether the upcoming print shows a return to operating profitability and better cash conversion.