JK Paper Ltd (JKPAPER) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

String Metaverse

JK Paper

N R Agarwal Inds

Gloster Ltd

T N Newsprint

Kuantum Papers

West Coast Paper

Pudumjee Paper

A B Real Estate

Seshasayee Paper

Andhra Paper

Why is JK Paper Ltd ?

High Management Efficiency with a high ROCE of 17.67%

Strong ability to service debt as the company has a low Debt to EBITDA ratio of 1.45 times

The company has declared Negative results for the last 6 consecutive quarters

PBT LESS OI(Q) At Rs 81.55 cr has Fallen at -28.02%
PAT(Q) At Rs 74.75 cr has Fallen at -41.8%
INTEREST(9M) At Rs 168.52 cr has Grown at 32.07%

With ROCE of 7.3, it has a Attractive valuation with a 1.1 Enterprise value to Capital Employed

The stock is trading at a discount compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of -18.96%, its profits have fallen by -61.8%

Majority shareholders : Promoters

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -18.96% returns in the last 1 year, the stock has also underperformed BSE500 in each of the last 3 annual periods

With its market cap of Rs 6,307 cr, it is the biggest company in the sector and constitutes 31.84% of the entire sector

Its annual Sales of Rs 6,744.18 are 26.22% of the industry

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to JK Paper should be less than 10%
Overall Portfolio exposure to Paper, Forest & Jute Products should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Paper, Forest & Jute Products)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is JK Paper for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

JK Paper

-19.08%

-0.50

38.26%

Sensex

4.66%

0.39

11.83%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

20.41%

EBIT Growth (5y)

3.69%

EBIT to Interest (avg)

5.71

Debt to EBITDA (avg)

2.40

Net Debt to Equity (avg)

0.27

Sales to Capital Employed (avg)

0.81

Tax Ratio

24.60%

Dividend Payout Ratio

12.84%

Pledged Shares

Institutional Holding

17.08%

ROCE (avg)

16.98%

ROE (avg)

17.84%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

1.15

EV to EBIT

15.35

EV to EBITDA

9.08

EV to Capital Employed

1.12

EV to Sales

1.15

PEG Ratio

Dividend Yield

1.34%

ROCE (Latest)

7.30%

ROE (Latest)

5.44%

Loading Valuation Snapshot...

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

Bearish

Bullish

Bollinger Bands

Mildly Bearish

Moving Averages

Mildly Bullish (Daily)

KST

Mildly Bearish

Bearish

Dow Theory

No Trend

OBV

Mildly Bearish

No Trend

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

1What is working for the Company

NET SALES(Q)

Highest at Rs 1,748.53 cr

-18What is not working for the Company

PBT LESS OI(Q)

At Rs 81.55 cr has Fallen at -28.02%

PAT(Q)

At Rs 74.75 cr has Fallen at -41.8%

INTEREST(9M)

At Rs 168.52 cr has Grown at 32.07%

DEBT-EQUITY RATIO(HY)

Highest at 1.58 times

Loading Valuation Snapshot...

Here's what is working for JK Paper

Net Sales - Quarterly

Highest at Rs 1,748.53 cr

in the last five quarters

MOJO Watch

Near term sales trend is positive

Net Sales (Rs Cr)

Here's what is not working for JK Paper

Profit Before Tax less Other Income (PBT) - Quarterly

At Rs 81.55 cr has Fallen at -28.02%

Year on Year (YoY)

MOJO Watch

Near term PBT trend is very negative

PBT less Other Income (Rs Cr)

Profit After Tax (PAT) - Quarterly

At Rs 74.75 cr has Fallen at -41.8%

Year on Year (YoY)

MOJO Watch

Near term PAT trend is very negative

PAT (Rs Cr)

Interest - Latest six months

At Rs 118.39 cr has Grown at 59.75%

over previous Half yearly period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (Rs cr)

Debt-Equity Ratio - Half Yearly

Highest at 1.58 times

in the last five half yearly periods

MOJO Watch

The company is borrowing more to fund its operations; it's liquidity situation may be stressed

Debt-Equity Ratio