Overview
Dipped Products PLC is a Hayleys Group subsidiary and a global supplier of industrial and household rubber gloves, with supporting plantation interests. The most material recent changes are a May 2026 commissioning of new high-value, automated glove lines at Kottawa and a softer March-quarter bottom line despite a solid gross margin print.
Price performance
The share lagged over the past year, falling 8.2% against the ASPI’s 9.3% gain. Near term it has outperformed: over three months DIPD fell 2.3% versus the ASPI’s 6.5% drop. It trades within a 52-week range of LKR 49.4 to LKR 71.5, with the last close at LKR 56.20.
Valuation
On 9.56 times earnings and 0.97 times book, the stock screens inexpensive; its P/B sits at the 18th sector percentile while the dividend yield of 4.0% is in the 82nd percentile. Full-year ROE was 10.1%, which helps reconcile the below-book multiple as cautious rather than obviously mispriced pending proof of profit traction.
News and sentiment
Coverage is normal, with 5 material articles in 90 days (3 positive, 1 negative, 1 neutral). On 18 May 2026 the company announced a Rs 2.3 billion expansion adding automated high-value glove capacity, ETP and a high-efficiency boiler. A first interim dividend of LKR 0.37 per share for FY 2026/27 went ex on 2026-07-09; a fourth interim of LKR 0.76 for FY 2025/26 went ex on 2026-04-15.
Financials
The March 2026 quarter was mixed: revenue declined 3.5% year-on-year; gross margin improved to 24.0% from 23.5%, but net margin fell to 5.6% from 9.0% as net profit dropped 39.9% year-on-year. Operating margin was not disclosed for this quarter in the database, and below-the-line detail was unavailable, but the net margin rank was among its worst March quarters (6 of 7). For the full year to March 2026, revenue grew 3.5% while net profit fell 8.2%. Shares outstanding were unchanged through the year, so per-share moves reflect absolute performance rather than dilution.
Risks
Profit conversion has been inconsistent: a strong gross margin did not translate to the bottom line in the latest quarter, exposing sensitivity to operating costs, finance and tax. Macro exposure remains material: glove demand is cyclical, export receipts face FX translation risk, and trade policy shifts can bite even if the current US tariff rate is set at 10%. A beta to the ASPI above 1 (1.29) also signals higher co-movement with market swings.
Outlook
As at 6 August 2026, the next figures are the June 2026 quarter, due now and expected by 2026-10-28. That filing will show whether the May 2026 capacity addition begins to lift revenue mix and restores year-on-year profit growth; a positive print would strengthen the case that today’s below-book valuation is temporary, while another weak quarter would argue the discount remains warranted.