Overview
Three Acre Farms is a vertically integrated poultry producer spanning breeder, hatchery and broiler operations under the Prima brand. The latest quarter showed robust operating profitability with minimal below-the-line drag, while the share price has slipped in recent months despite no fresh company news.
Price performance
At LKR 604 as of 7 Aug 2026, TAFL has lagged the ASPI over 3 months. Returns were -12.4% versus -7.1. Over 1 year it fell -7.7% while the index rose 9.5. It sits at 32.5% of the 52-week band. Volatility and volumes are both running lighter than the company’s own one-year norms.
Valuation
TAFL trades on 7.1x TTM earnings, around the 11th percentile versus consumer retail peers. The dividend yield is 6.6%, at the 89th sector percentile. The payout stepped down from LKR 55 in FY2024 to LKR 40 in FY2025, though coverage on trailing earnings remains comfortable.
News and sentiment
Direct coverage is thin, with 0 material articles in the last 90 days. The share fell 12.4% recently, with no company news in the last 30 days. The most recent corporate event was a final dividend of LKR 40, ex 9 Feb 2026.
Financials
In the June 2026 quarter, net profit was LKR 511 million. Gross margin was 29.9%. Operating margin was 29.4%. Net margin was 27.4%. Finance costs and tax took only LKR 36 million below the operating line. Year-on-year comparisons for this quarter are not available in this feed. For FY2025, net profit fell 9.5% year-on-year.
Risks
The key risk is earnings and payout variability: DPS fell to LKR 40 in FY2025 from LKR 55. Operating leverage is visible, with gross margin swinging from 2.4% in Jun 2025 to 41.5% in Dec 2025. Trading liquidity is thin, with average daily volume around 3,833 shares. Balance-sheet risk is low given a current ratio of 5.35.
Outlook
As at 7 Aug 2026, the next filing is expected from 28 Oct 2026. The exchange typically runs out to 26 Jan 2027. That print will show whether recent margin strength persisted as consumer costs rose, with headline inflation at 7.3% and fuel prices up 47% in July. With T-bill yields easing, finance costs are not the swing factor today.