All analyses
AI analysis

CT Land Development Plc: research report

Fairly valuedbearishSep 3, 2026

CT Land's June quarter recorded a widened net loss, despite revenue growth. The low P/B is offset by a stretched earnings multiple and rising debt.

Reports without a focus are public, one per stock per day. Generation usually takes about 15 minutes, and we'll notify you when it's ready.

Why bearish

  • The June 2026 net loss widened by LKR 78.5 million year-on-year to LKR 93.6 million.
  • Total debt reached LKR 2.42 billion at June 2026, while operating cash flow was negative LKR 190.3 million.
  • The latest audited year had negative cash conversion of -0.42x and gearing of 35.6%.

Against this. The shares trade at 0.55x book value, placing CT Land in the 7th percentile of its sector.

Operating margin
-42.3%sector 13.6%
from -14.9% a year earlier
Net margin
-92.1%sector 10.9%
from -17.2% a year earlier, revenue +15.9%
Return on equity
12.4%sector 9.5%
full year to Mar 31, 2026
P/E
21.6sector 10.2
earnings Rs 1.71 per share
P/B
0.55sector 1.09
book Rs 67.01 per share
Dividend yield
0.00%sector 2.39%
trailing twelve months

Current figures, updated daily from filings to Jun 30, 2026. The report below was written on Sep 3, 2026. Sector figures are the median of 32 listed companies in the same sector.

Overview

CT Land Development owns, manages and develops commercial property, centred on the Majestic City shopping complex. The key change is a return to deeper quarterly operating and net losses, following an audited year in which reported profit was heavily influenced by items outside recurring rental revenue.

Price performance

At LKR 36.80 on 2 September 2026, CTLD fell 1.5% over one month while the ASPI gained 1.3%. Its 17.6% one-year gain exceeded the ASPI's 3.3% return.

The price sat midway through its 52-week range at 51.1%. Trading volume was sharply below its recent norm, while 60-day volatility was marginally below CTLD's own one-year level.

Valuation

CTLD trades on 21.5x earnings, in the 92nd percentile among 26 property and construction peers with P/E data, despite a 12.4% ROE in the latest audited year. This makes the earnings multiple demanding relative to the sector.

In contrast, its 0.55x P/B places it in the 7th percentile of 31 peers, broadly consistent with the market price sitting well below stated net assets. The dividend yield is zero; the available record shows the last recorded payout was in FY2020, following a higher payout in FY2019.

News and sentiment

Direct coverage is thin: one material article in the past 90 days was neutral. The latest item reported Joseph Page's appointment as Non-Executive Chairman and Indira Malwatte's appointment as an independent director.

No confirmed or pending corporate actions are recorded.

Financials

June 2026 revenue rose 15.9% year-on-year to LKR 101.7 million, but operating loss widened by LKR 29.9 million to LKR 43.0 million and net loss widened by LKR 78.5 million to LKR 93.6 million. The LKR 50.6 million below-the-line drag added to the operating loss.

Gross margin was not reported. Operating margin deteriorated from -14.9% to -42.3%, while net margin fell from -17.2% to -92.1%; both were the worst of CTLD's three comparable June quarters, with net margin also the worst of seven comparable company-basis quarters.

Equity increased from LKR 4.83 billion a year earlier to LKR 5.44 billion, while the share count remained 81.25 million. The latest audited year ended March 2026 is historical relative to the June filing: revenue fell 46.0% while net profit rose 251.2%, a divergence that underscores the importance of non-operating and valuation-related items.

Risks

The principal risk is rising leverage alongside weak operating cash generation. Debt increased to LKR 2.42 billion at June 2026 from LKR 635 million a year earlier, while the latest audited year showed gearing of 35.6% and negative free cash flow of LKR 530.9 million.

Liquidity is also tight, with a 0.81x current ratio in the latest audited year. Interest cover was strong at 53.72x then, but it was measured before the June quarter returned to an operating loss.

Sector conditions are mixed: construction activity expanded in July, but material prices, labour gaps and supply constraints remain reported sector pressures. These developments are sector context rather than company-specific news.

Outlook

As at 3 September 2026, the next material event is the filing for the quarter ending 30 September 2026, expected between 12 November 2026 and 2 March 2027. It will show whether the June loss was followed by a further deterioration or an improvement in the underlying property operation.

The available data cannot establish the contribution of Majestic City refurbishment, tenant mix changes or property revaluations to future earnings.

About this report. Generated on Sep 3, 2026 from market data up to Sep 2, 2026, 1 material news articles over 90 days and financials to Jun 30, 2026. Every figure is drawn from EquityLK's own data on this company. AI research can contain errors, so treat it as a starting point, not investment advice.

Previous reports