Experienced management
OPPL is a family-run, first-generation packaging company founded by Mr. Sandeep Kumar Jain that began operations in Delhi in 2003 initially producing packaging material primarily for pharmaceutical companies. The director of OPPL has more than two decade of experience in paper and packaging industry. In 2010, the business was relocated to the Sidcul industrial area of Haridwar, Uttarakhand, from Delhi to leverage government incentives, lower operational costs, and an area suitable for expansion. Acuite believes the company would continue to benefit from the experience of the promoters over the medium term as indicated by healthy customer and supplier profiles. 
­Increased scale of operations
OPPL has witnessed increased in its turnover to Rs.84.43 Cr. in FY2025 from Rs. 69.57 Cr. in FY2024 on account of increased capacity production and volume sales.  The YTD sales were Rs. 72.37 Cr. upto January 2026. Almost 75% of the sales is to pharmaceutical industry and balance from electrical industry. The profitability of the company witnessed Improvement as operating profit margin rose slightly to 12.03 percent in FY2025 as against 11.40 percent in FY2024. Furthermore, the company reported net profitability margin of 2.55 per cent in FY2025 as compared to 2.65 percent in FY2024. Acuite believes the company’s profitability margins are expected to remain at similar levels over the medium term, supported by increased sales anticipated in the upcoming years.

Below Average financial risk profile
The financial risk profile of the company is marked by low but increasing net worth and below average debt protection metrics albeit low DSCR. The tangible net worth of the company stood at Rs. 17.76 Cr. as on FY2025 as compared to Rs. 15.59 Cr. as on FY2024 due to small accretion to reserves. For FY2025, the gearing of the company increased to 3.49 times from 2.95 times in FY2024 on account of Debt addition in FY2025. The Total Outside Liabilities/Tangible Net Worth (TOL/TNW) also increased to 4.93 times in FY2025 from 4.34 times in FY2024. The Interest Coverage Ratio (ICR) decreased slightly to 2.36 times in FY2025 from 2.54 times in FY2024. The Debt Service Coverage Ratio (DSCR) increased slightly to 1.06 times in FY2025 from 0.96 times in FY2024. The net cash accruals to total debt (NCA/TD) stood at 0.08 times in FY2025 from 0.10 times in FY2024. Acuite believes The financial risk profile of the company is expected to remain at similar levels over the medium term.

­Intensive Working Capital Management
OPPL’s operations exhibit intensive working capital cycle, as indicated by its high gross current asset (GCA) days of 209 days in FY2025 compared to 202 days in FY2024. The debtor period of the company also stood at 82 days in FY2025 as compared to 85 days in the FY2024. OPPL’s inventory days increased to 140 days in FY2025 from 126 days in FY2024. The higher inventory levels are primarily due to delays in the procurement, as suppliers typically take around two months to deliver raw materials. Consequently, the company maintains higher stock levels to ensure readiness for sudden or urgent orders. Acuité believes that the working capital operations of the company will remain at the similar levels over the medium term.

Presence in a highly competitive and fragmented industry
The company is operating in highly competitive and fragmented nature of industry. There are several players engaged in the packaging industry in organized and unorganized sector. Hence, the company might face pricing pressure from other competitors. The entry barrier to this industry is low. Acuite believes that the presence in a competitive industry increases the risk on growth on topline and pressure on margins.