1. At a Glance
A 56-year-old conglomerate with businesses spanning petrochemicals, closures, marine logistics, and real estate — Oricon Enterprises is like that uncle with 5 businesses, none of which you understand. Once a cash cow, now more like a confused camel with bad margins and other income doing all the heavy lifting.
2. Introduction with Hook
If Oricon were a cricket team, it would be a 1990s Pakistan squad: unpredictable, explosive in patches, and capable of collapsing under its own weight.
- 5-year sales growth: -28%
- Return on equity (ROE): 0.46% (basically a savings account)
But wait, there’s drama: it’s selling legacy businesses, hoarding real estate, and raking in “other income” like a tax-saving uncle in March.
3. Business Model (WTF Do They Even Do?)
Oricon = diversified chaos:
- Real Estate: Sitting on prime Mumbai land like a dragon guarding treasure.
- Marine Logistics: 100% ownership of United Shippers Limited, a profitable subsidiary.
- Packaging: Plastic closures and preforms (now sold to Manjushree Technopack in April 2024).
- Petrochemicals: Also selling off this unit.
Translation? They’re liquidating old businesses and morphing into a real estate play wrapped in packaging paper.
4. Financials Overview
Consolidated FY25 P&L
- Sales: ₹173 Cr
- Operating Profit: ₹-29 Cr (Negative. Again.)
- OPM: -17% (Ouch.)
- Other Income: ₹183 Cr (Actual hero of the film)
- Net Profit: ₹139 Cr
- EPS: ₹8.86
Growth (YoY):
- Sales: Flat
- Net profit: Up (thanks to other income)
- Core operations: Still allergic to profits
5. Valuation
CMP: ₹45
Book Value: ₹79.7
P/BV: 0.56x
P/E: 126x (on net profit largely driven by other income)
Valuation Angle:
If you consider only operating earnings, this stock is massively overvalued.
But if you bet on:
- Monetization of land assets
- United Shippers’ hidden value
- Debt-free status post asset sales
Then fair value could be:
- Bear Case: ₹20
- Base Case: ₹55
- Bull Case: ₹80+ (on sum-of-parts + real estate optionality)
6. What’s Cooking – News, Triggers, Drama
- April 2024: Sold plastic closures business for ₹520 Cr
- July 2024: Transferring manufacturing biz to Manjushree
- Sept 2023: Sold Petrochemical unit
- Cash In Hand: Rising. Smells like a special dividend or buyback?
- CRISIL: Assigned “Negative Watch” on some facilities (debatable rating, given low debt)
7. Balance Sheet
| Item | FY25 (₹ Cr) |
|---|---|
| Equity Capital | 31 |
| Reserves | 1221 |
| Borrowings | 11 |
| Other Liabilities | 74 |
| Total Liabilities | 1338 |
| Fixed Assets | 363 |
| Investments | 599 |
| Other Assets | 358 |
Key Points:
- Debt almost wiped out
- Heavy on investments & land assets
- Could become an NBFC if this trend continues.
8. Cash Flow – Sab Number Game Hai
| Year | CFO | CFI | CFF | Net CF |
|---|---|---|---|---|
| FY25 | -32 | +160 | -106 | +23 |
| FY24 | +58 | -69 | +1 | -10 |
| FY23 | +25 | +74 | -91 | +7 |
Key Points:
- Operating cash flow negative due to loss-making operations
- Investing cash flow positive = they’re selling assets
- Cash pile rising — use case TBD
9. Ratios – Sexy or Stressy?
| Metric | FY25 |
|---|---|
| ROCE | 1% |
| ROE | 0.46% |
| OPM | -17% |
| Interest Coverage | 20x (Only because interest is almost zero) |
| Debtor Days | 93 |
| Inventory Days | 101 |
| Cash Conversion Cycle | 86 |
Verdict: Boring ratios, but improving on liquidity and collection front. ROE is so low, it might need a motivational speaker.
10. P&L Breakdown – Show Me the Money
| Year | Sales | Op Profit | OPM | Other Income | Net Profit |
|---|---|---|---|---|---|
| FY23 | ₹146 | -₹33 | -23% | ₹56 Cr | ₹15 Cr |
| FY24 | ₹146 | -₹32 | -22% | ₹69 Cr | ₹30 Cr |
| FY25 | ₹173 | -₹29 | -17% | ₹183 Cr | ₹139 Cr |
Note: This is a “Other Income Pvt. Ltd.” situation
11. Peer Comparison
| Company | P/E | ROE | OPM | Div Yld | P/B |
|---|---|---|---|---|---|
| EPL Ltd | 20.88 | 16.28% | 19.84% | 1.88% | 3.21x |
| TCPL Packaging | 24.14 | 23.84% | 16.93% | 0.80% | 5.22x |
| Uflex | 18.91 | 3.11% | 11.11% | 0.50% | 0.58x |
| Oricon Ent. | 126.28 | 0.46% | -17% | 1.11% | 0.56x |
Conclusion: Operationally weak. Only appealing if you believe in the asset monetization thesis.
12. Miscellaneous – Shareholding, Promoters
| Holder | Mar ’25 |
|---|---|
| Promoters | 65.70% |
| FIIs | 0.01% |
| DIIs | 0.32% |
| Public | 33.89% |
| Shareholders | 40,951 |
Observations:
- Promoters selling slightly but still strong control
- High retail participation – possibly chasing dividend or asset value
- No mutual fund action yet — take that how you want.
13. EduInvesting Verdict™
Oricon Enterprises is like an aging wrestler — done with the fight, but still collecting royalty cheques from past glory.
The packaging and petrochemical divisions? Gone. What remains is a logistics company and some Mumbai real estate with enough “other income” to keep shareholders awake.
You’re not betting on operations here. You’re betting on:
- Special dividends
- Unlocking land value
- Or a one-day turnaround in United Shippers Ltd.
Oricon isn’t for everyone. But for deep-value believers who enjoy reading BSE announcements like daily soaps — this one’s worth keeping on your radar.
Metadata
– Written by EduInvesting Research | 12 July 2025
– Tags: Oricon Enterprises, Asset Sale, Value Unlock, Packaging, Real Estate Play, Other Income Stocks
