ORICONENT - Oricon Enterpris

📊 NSE: ORICONENT 🏢 Packaging 📅 Last Updated: 12/14/2025 10:45

💰 Financial Performance

Revenue Growth by Segment

Consolidated revenue for FY 2024-25 was INR 168.46 Cr, representing a 15% growth compared to INR 146.5 Cr in FY 2023-24. However, FY 2023-24 revenue had declined 75.7% from INR 604.4 Cr in FY 2022-23 due to the sale of business undertakings. Standalone packaging revenue for the continuing operations was INR 125.91 Cr, while discontinuing packaging operations contributed INR 154.51 Cr prior to the slump sale.

Geographic Revenue Split

Not disclosed in available documents, though the company notes exposure to both Indian and global markets with uncertainties in the global environment impacting growth.

Profitability Margins

Net Profit Ratio surged to 36.8% in FY 2024-25 from 2.4% in the previous year, primarily driven by a profit of INR 123.14 Cr from the slump sale of discontinued operations. Historical PAT margin was 0.3% in FY 2024 compared to 2.4% in FY 2023, reflecting the impact of the business transition.

EBITDA Margin

Return on Capital Employed (ROCE) improved to 13.9% in FY 2024-25 from 2.1% in the prior year, a 557.6% increase driven by the realization of gains from the business sale and debt repayment.

Capital Expenditure

The company has planned capital expenditure of approximately INR 10 Cr to be funded through internal accruals and available liquidity. This follows the receipt of INR 530 Cr from the sale of a plant, which was primarily used to repay debt and invested in liquid mutual funds.

Credit Rating & Borrowing

CRISIL withdrew its ratings of 'CRISIL BBB/Stable' and 'CRISIL A2' in August 2025 following the company's request and 'no dues certificate' from lenders. Previously, the company maintained a low gearing of sub 0.1 times on a net worth base exceeding INR 1,000 Cr.

⚙️ Operational Drivers

Raw Materials

Specific raw materials include metals (aluminum and steel for caps/closures) and chemicals (for mixed pentane production), which are susceptible to price volatility that can constrain pricing power and profitability.

Import Sources

Not specifically disclosed, though the company mentions susceptibility to forex risk, implying international sourcing for certain metal or chemical components.

Capacity Expansion

Current capacity is not specified in units; however, the company is actively evaluating new opportunities for the deployment of its INR 530 Cr cash surplus to expand its operational scale which moderated following the business sale.

Raw Material Costs

Raw material price volatility is cited as a primary weakness; fluctuations in metal prices directly impact the cost of manufacturing crowns and closures, which can squeeze margins if not passed to customers in the fragmented packaging industry.

Manufacturing Efficiency

Net Capital Turnover Ratio decreased 33.99% (from 3.30 to 2.18) due to the decrease in revenue following the divestment of business units.

📈 Strategic Growth

Expected Growth Rate

15%

Growth Strategy

Growth will be achieved through the 'optimal deployment' of the INR 530 Cr cash surplus received from business sales. The strategy involves evaluating new investment avenues and supportive government policies to diversify or scale existing operations in packaging and petrochemicals.

Products & Services

Metal caps, closures, plastic closures, PET preforms, roll-on pilfer-proof (ROPP) caps, chamfered closures, crowns, aluminum collapsible tubes, printed metal sheets, and mixed pentane (petrochemical).

Brand Portfolio

Oricon, Oriental Containers, and United Shippers (100% ownership).

New Products/Services

The company is exploring new avenues for investment following its capital strength boost, though specific new product lines are currently under evaluation by the Board.

Market Expansion

The company is targeting growth in the global market to sustain its established position, though it acknowledges higher uncertainties in international expansion.

Market Share & Ranking

Established market position as a leading manufacturer of metal closures in India.

Strategic Alliances

The company is part of the Parijat Group and holds 100% ownership in United Shippers Limited.

🌍 External Factors

Industry Trends

The packaging industry is seeing a trend toward product substitution; Oricon is positioning itself by maintaining a diversified portfolio including plastic and metal closures to mitigate the risk of shifts in end-user preferences.

Competitive Landscape

The industry is highly fragmented with intense competition, which limits the pricing power of established players like Oricon.

Competitive Moat

The moat is built on an established market position and longstanding customer relationships developed over decades. This is sustainable due to the high capital requirements for precision metal printing and closure manufacturing.

Macro Economic Sensitivity

The company is sensitive to India's GDP growth, which was 6.5% in FY 2024-25; higher economic activity drives demand for consumer packaging and industrial chemicals.

Consumer Behavior

Shifts in end-user industries (beverages, pharma) toward different packaging formats like sachets or tetra packs affect demand for traditional metal crowns.

Geopolitical Risks

Uncertainties in the global market are identified as a risk to sustaining growth, particularly regarding trade barriers or economic shifts abroad.

⚖️ Regulatory & Governance

Industry Regulations

Operations are governed by IND-AS 108 for segment reporting and SEBI (LODR) Regulations 2015 for corporate disclosures.

Taxation Policy Impact

The company's strategy is impacted by changing laws relating to taxation on investments and the tax implications of slump sales.

Legal Contingencies

The company is managing claims related to an agreement for sale dated July 26, 1985, involving Lavanya Prints and property interests, though specific INR values for these historical legal claims are not detailed.

⚠️ Risk Analysis

Key Uncertainties

The primary uncertainty is the 'Opportunity Cost' of delayed fund redeployment, which could impact potential returns by 5-10% if funds remain in low-yield liquid assets.

Geographic Concentration Risk

The company has a significant presence in Mumbai, Maharashtra (Registered Office and operations).

Third Party Dependencies

Dependency on metal and chemical suppliers is high, as raw material volatility is a noted weakness.

Technology Obsolescence Risk

Risk related to product substitution suggests a moderate risk of technology obsolescence if the company does not pivot toward emerging packaging materials.