Oricon Enterprises Limited

Consumer Cyclical — Packaging & Containers · NSE

₹52.55+₹1.22 (+2.38%)

DalalBaazaar Score

58 / 100

🟡 Moderate

Verdict

CAUTION

Risk

Moderate

Driven by negative free cash flow, micro-cap size, which brings thin liquidity, a very high earnings multiple, which leaves little margin for disappointment.

In simple words: The business is earning a fairly low return on the money invested in it, but sales are shrinking. Cash generation is currently the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 7:46 pm

Understanding the Business

Company site ↗

The 60-second version of Oricon Enterprises Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

Oricon Enterprises Limited engages in trading and real estate businesses in India and internationally. It is also involved in trading, real estate, warehousing, and shipping and related logistics businesses.

IndustryPackaging & Containers

SectorConsumer Cyclical

Employees34

Annual revenue₹42 Cr

How does it make money?

Turns over ₹42 Cr a year. Of every ₹100 of sales, about ₹61 reaches shareholders as profit, with ₹48 left at the operating level before interest, tax and depreciation. Each of its 34 employees supports ₹1.24 Cr of revenue a year, the signature of a capital- or asset-led business.

Revenue / employee₹1.24 Cr

Who are its competitors?

The closest listed comparisons in its industry are MARUTI SUZUKI INDIA LTD., TITAN COMPANY LIMITED, TRENT LTD, AVENUE SUPERMARTS LIMITED. These are the companies its valuation and returns are measured against elsewhere in this report.

Compared side by side in Peers ↓

What is its competitive advantage?Little sign of one

Returns on capital of 2.5% are at or below what the capital likely costs. That is the financial pattern of a business competing largely on price, where advantage has to come from execution rather than position.

Peer median ROE25.9%

What has been driving growth?

Profit has moved mainly because margins changed, not because the business sold much more. Over 3 years revenue moved -71% while net margin moved +493% relative to itself. What this cannot tell you is which products, customers or geographies did the work — that lives in the segment disclosures of the annual report.

Revenue effect-71%

Margin effect+493%

DalalBaazaar Score

58/ 100

Moderate

Weighted across six categories. Every point is explained below.

✓ Beta of 0.28 — historically steadier than the index
✗ Micro Cap: thinner liquidity and sharper drawdowns are normal
✗ Profits have swung sharply from year to year — earnings are hard to forecast
✗ Negative free cash flow means dependence on external funding

Quality vs. Valuation

Company Quality

64/ 100

Average

How good the business is, ignoring the share price entirely.

Valuation

36/ 100

Expensive

What you are being asked to pay, ignoring how good the business is.

A reasonable business at a reasonable price — neither the quality nor the valuation stands out in either direction.

Historical Valuation

Current P/E

60.4x

3Y Median

21.0x

40 monthly readings · mean 22.4x · range 6.0x–43.8x

Sector Median

69.2x

median of 4 sector peers

⚠️Current valuation is approximately 188% above its 3y median of 21.0x. Paying more than usual needs a reason — faster growth, a better balance sheet, or a re-rating you believe in.

🟡Against its sector it is priced broadly in line with the peer median of 69.2x.

vs. its own history

Expensive

21.0x median over 40 months · +188%

vs. sector peers

Fair

69.2x median of 4 peers · -13%

vs. generic bands

Expensive

Above 35x

EV/EBITDA

40.4x

PEG

3.01

What's Good / What's Bad

🟢 What's Going Well5

Margins are improving
EBITDA margin is up from 4.8% to 48.5% over 3 years.
Debt is being paid down
Total debt is down 96% over 3 years.
Return on capital is rising
ROCE has improved from -2.1% to 2.5%.
Very low debt
Debt/Equity of 0.27x leaves the balance sheet with plenty of headroom.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention0

Nothing stands out as clearly deteriorating on the years of data available.

Red Flags

1 item require attention · 1 high

🔴Free cash flow negative for 4 yearsFinancial
The business has not covered its capital spending from operations for several years running, which has to be funded externally.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Margin expansion has further to run
EBITDA margin has risen from 4.8% to 48.5%. If that holds, profit compounds faster than sales and today's multiple looks cheaper in hindsight than it does now.
Deleveraging frees up earnings
Debt is down 96% over 3 years. Every rupee of interest not paid drops to the bottom line, so profit can grow even if revenue does not.
Earnings have proved durable
Profitable in every one of the last 4 reported years. Consistency lowers the risk that any single bad year is structural rather than cyclical.

🔴 Bear CaseWhat could go wrong?

The price already assumes success
The stock trades 188% above its own median multiple. At this level the business has to deliver just to stand still, and a stumble is repriced twice — lower earnings on a lower multiple.
Earnings are hard to forecast
Profit has swung sharply from year to year, so any single year — good or bad — is a weak guide to the next. Cyclical earnings deserve lower multiples for that reason.
Size brings its own risk
Micro Cap businesses are thinly traded, so exits are harder in a falling market and single events move the price more than they would for a larger company.

🟡 Key Things to WatchMeasurable tripwires, set against where this company stands today

1EBITDA margin holds above 46%✓ 48.5%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Free cash flow remains positive✗ -₹24 Cr
Profit that never becomes cash eventually stops being profit.
3Debt / EBITDA stays below 2x✓ 0.2x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
4ROCE stays above 8%✗ 2.5%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.
5Valuation vs its own median of 21.0x✗ 60.4x today
A re-rating above its own history needs a reason; without one it is just a higher price.

Investment Checklist

5 / 11 checks passed

✗ Strong return on equity (ROE ≥ 15%)
✗ Strong return on capital employed (ROCE ≥ 15%)
✓ Healthy net margin (≥ 10%)
✗ Generates positive free cash flow
✓ Manageable leverage (Debt/Equity < 1.0)
✓ Adequate short-term liquidity (Current Ratio ≥ 1.0)
✗ Revenue growing year-over-year
✓ Profit growing year-over-year
✗ Not trading at an extreme valuation (P/E < 40x)
✓ Not buying right at the 52-week high
✗ Short-term technical trend isn't bearish

Price history

Quick Metrics

4 good · 2 neutral · 5 weak

Market Cap

₹830 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

60.4x

Expensive

Expensive — verify against sector peers

P/B Ratio

0.71x

Reasonable

Reasonable against the company's book value

EPS (TTM)

₹0.87

Profitable

Profitable on a per-share basis

ROE

2.2%

Weak

Weak capital efficiency

ROCE

2.5%

Weak

Low return on total capital employed

Debt/Equity

0.27x

Low

Conservative leverage

Revenue Growth (YoY)

-80.5%

Shrinking

Sales are contracting

Profit Growth (YoY)

25.3%

Healthy

Profits growing at a healthy clip

Dividend Yield

0.38%

Modest

Small cash return — most of the return has to come from the price

Free Cash Flow

-₹24 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

Operating Margin

-216.4%

Weak

Thin margins leave little room for error

Net Margin

63.8%

Good

Strong bottom-line conversion

Current Ratio

8.24

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.28

Defensive

Steadier than the market

52W Range Position

21%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

52.1 / 53.2

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

54.8

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹144 Cr	₹144 Cr	₹47 Cr	₹42 Cr	-33.6%
EBITDA	₹7 Cr	₹20 Cr	₹18 Cr	₹20 Cr	+43.4%
EBITDA Margin	4.8%	14.2%	39.5%	48.5%	—
PAT (Net Profit)	₹15 Cr	₹30 Cr	₹139 Cr	₹26 Cr	+20.1%
EPS	₹0.95	₹1.91	₹8.86	₹1.64	+20.0%
ROE	1.4%	2.6%	11.1%	2.2%	—
ROCE	-2.1%	-0.2%	0.1%	2.5%	—
Total Debt	₹89 Cr	₹113 Cr	₹11 Cr	₹3 Cr	-67.1%
Free Cash Flow	-₹56 Cr	-₹40 Cr	-₹67 Cr	-₹24 Cr	—

🔴 Revenue has shrunk at 33.6% a year over 3 years.

🟢 EBITDA has grown at 43.4% a year over 3 years.

🟢 EBITDA Margin has risen from 4.8% to 48.5% over 3 years (+43.7 pts).

🟢 PAT (Net Profit) has grown at 20.1% a year over 3 years.

🟢 EPS has grown at 20.0% a year over 3 years.

🟡 ROE has held roughly flat at 2.2% over 3 years.

🟢 ROCE has risen from -2.1% to 2.5% over 3 years (+4.6 pts).

🟢 Total Debt has shrunk at 67.1% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹1,233 Cr

Total Liabilities

₹82 Cr

Cash & Equivalents

₹8 Cr

Operating Cash Flow

-₹2 Cr

Capex

-₹21 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

77.3%

Corporate Actions

Dividend Rate

₹0.2

Ex-Dividend Date

21 Sept 2026

Peer Comparison

Company	P/E	ROE
MARUTI SUZUKI INDIA LTD.	25.2x	13.4%
TITAN COMPANY LIMITED	68.5x	36.7%
TRENT LTD	87.2x	25.9%
AVENUE SUPERMARTS LIMITED	69.9x	12.7%

Recent News

2 mixed4 general

Is Oricon Enterprises the Best Stock in Its Sector? A Look at the Numbers

Univest, 05 Oct

Oricon Enterprises Ltd. Key Financial Ratios – Valuation, Profitability & More

Value Research, 01 Sept

Oricon Enterprises Divests Metal Crown Seals and Roll-On Pilfer-Proof Closures Business to Guala Closures India

scanx.trade, 04 Nov

Why Is Oricon Enterprises Share Price Falling Key Reasons 2026

Univest, 23 JunPrice move

🟡Mixed / dependsA price move rather than a change in the business. If the figures on this page have not moved, the fall is either an opportunity or news they have yet to catch up with.

ORICON ENTERPRISES Share Price - Live NSE: ORICONENT Stock Price & Chart

Upstox, 21 Jan

Oricon Enterprises (NSE:ORICONENT): What Does Its Reg 74(5) Certificate Signal for Q2 FY27?

Kalkine India, 09 OctResults

🟡Mixed / dependsA results event. The figures on this page update once the new statements reach the data feed, which usually lags the announcement.

Watch Items

Revenue growth is negative (-80.5%) on the latest reported period — check if this is one-off or a trend.
Cross-check against the company's latest quarterly filing / investor presentation before acting.

DalalBaazaar Thesis

StrongBusiness Quality · Financial Health

MiddlingGrowth · Profitability

WeakValuation · Risk

Points for each in the Score ↑

Unremarkable in both directions

A reasonable business at a reasonable price. Nothing here is alarming and nothing is compelling, which usually means the decision rests on things this data cannot see — the industry's direction, management's intent, and what else is available to you. 1 high-severity red flag sits above this conclusion and should be read first.

3 of 5 tripwires tripped — Free cash flow remains positive; ROCE stays above 8%; Valuation vs its own median of 21.0x · see Key things to watch ↑