Shree Krishna Paper Mills Faces Market Challenges Amidst Profit Growth and High Debt Levels

Shree Krishna Paper Mills & Industries has experienced significant volatility today, reaching a new 52-week low of Rs. 35.4. The stock opened with a notable gap down of 6.18%, reflecting a day’s low of Rs. 35.4, which represents a decline of 7.74%. In comparison to its sector, the stock underperformed by 7.81%, indicating challenges in its market position. Over the past year, Shree Krishna Paper Mills has seen a decline of 30.99%, starkly contrasting with the Sensex's marginal drop of 0.24%. The company's long-term fundamentals appear weak, highlighted by an average Return on Capital Employed (ROCE) of 5.99% and a high Debt to EBITDA ratio of 4.56 times, suggesting difficulties in servicing debt. Despite these challenges, the company reported a remarkable 330% growth in net profit for the quarter ending March 2025, alongside positive results in the previous two quarters. However, with 84.38% of promoter shares pledged, the stock faces additional downward pressure in a declining market. Overall, Shree Krishna Paper Mills & Industries continues to navigate a complex financial landscape.