All analyses
AI analysis

Gestetner of Ceylon Plc: research report

Moderately undervaluedneutralAug 26, 2026

Gestetner’s latest reported quarter lifted net profit 23.3% year-on-year, but revenue and margins were not disclosed, leaving the quality of that improvement difficult to assess.

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 balanced

  • The trailing P/E is 9.76, placing the stock at the 31st sector percentile.
  • Annual revenue grew 11.1% to LKR 1.95 billion, showing continued top-line expansion.
  • The latest quarter reported net profit growth of 23.3%, although the filing did not provide revenue.

Against this. Annual net profit fell 0.3% despite revenue growth, indicating that expansion has not yet translated into higher full-year earnings.

Return on equity
22.1%
twelve months to Jun 30, 2026, unaudited
P/E
8.0sector 13.3
earnings Rs 38.78 per share
P/B
1.26sector 1.66
book Rs 246.43 per share
Dividend yield
1.26%sector 1.46%
10.1% of earnings paid out

Current figures, updated daily from filings to Jun 30, 2026. The report below was written on Aug 26, 2026. Sector figures are the median of 35 listed companies in the same sector.

Overview

Gestetner supplies and rents office automation, printing, scanning and projection equipment, while its subsidiaries provide managed document and digital printing services across Sri Lanka and the Maldives. The latest filing shows profit continuing to grow, but the absence of quarterly revenue and operating data makes the underlying improvement harder to judge.

Price performance

The price sits midway through its 52-week range, 27.5% below the high and 62.7% above the low. Recent trading has been quieter than the company’s own prior year: 60-day annualised volatility was 45.0% versus 77.9% over one year, while 20-day average volume was 75.8% below its 60-day average.

Valuation

No dividend yield is displayed, but the payout direction is positive across the latest recorded years, with DPS rising from LKR 3.25 in FY2025 to LKR 3.9 in FY2026. The upcoming first and final dividend is therefore a cash return, but not yet reflected in the displayed yield.

News and sentiment

Coverage is thin, with only two material company articles in the last 90 days: one positive dividend notice and one neutral board-committee disclosure. The confirmed dividend has an ex-date of 2026-09-22 and a payment date of 2026-10-08.

Financials

For the year ended 2026-03-31, revenue rose 11.1% to LKR 1.95 billion, while operating profit increased to LKR 184.7 million and net profit slipped 0.3% to LKR 103.1 million. The twelve months to 2026-06-30 generated revenue of LKR 1.58 billion, down 12.2% year-on-year, but this reconstructed period is historical and does not replace the missing June-quarter revenue disclosure.

Risks

Liquidity was adequate but not abundant, with a current ratio of 1.71. Interest cover was not disclosed for the latest annual period, limiting visibility on the company’s ability to absorb higher borrowing costs. The June quarter also included LKR 2.1 million attributable to minority shareholders, so group net profit and the earnings accruing to listed owners are not identical.

Outlook

That filing is the next event that can resolve the current uncertainty, because the June release established profit growth but omitted the revenue and operating lines needed to test its quality. The available data cannot yet distinguish stronger operations from changes below the operating line.

About this report. Generated on Aug 26, 2026 from market data up to Aug 25, 2026, 2 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