Packaging business ORA jumped +14.8% yesterday, only a week after we flagged it as a potential candidate for our Income Portfolio, after a huge shift by the consumers to “slim and sleek” cans, much preferred by the millennials and Gen Z market who like a canned drink! Volumes have increased by a whopping 10% in just 6 months and it’s encouraging to see ORA ahead of the curve with this development as they continue to invest to increase output capacity. The group announced a +7.8% increase in Net Profit After Tax (NPAT) to $108mn for the 6 months to December 31 helped by a solid performance by its cardboard box business which the market thought would struggle.
- We like this $2.8bn Victoria-based business whose 14.5x Est valuation for 2023 and 5.4% yield over the next 12 months is attractive
MM likes ORA around the $3.30 area
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