JK Paper's Financial Performance Declines, MarketsMOJO Gives 'Sell' Call

Despite facing challenges in the paper and paper products industry, JK Paper has been able to maintain a low debt-to-equity ratio and reduce its borrowing in the last five half yearly periods. However, the company's financial performance for the quarter Q2 FY24-25 has been very negative, with a significant decrease in profit before tax and after tax. The interest cost has also increased, indicating a rise in borrowings. The company's operating profit and profit margin have been on a downward trend in the last five quarters, and the earnings per share have also declined. Additionally, the company's ability to manage interest payments has deteriorated, with the operating profit to interest ratio being the lowest in the last five quarters. The debtors turnover ratio has also decreased, showing a slower pace in settling debts. Based on these financials, MarketsMOJO has given a 'Sell' call for JK Paper's stock.