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

Comparison

Company

Score

Quality

Valuation

Financial

Technical

T N Newsprint

Emami Paper

JK Paper

Gloster Ltd

West Coast Paper

N R Agarwal Inds

String Metaverse

Seshasayee Paper

Andhra Paper

Pudumjee Paper

KS Smart Technlo

Why is JK Paper Ltd ?

High Management Efficiency with a high ROCE of 16.13%

Company has a Debt to Equity ratio (avg) of 0.43 times

Positive results in Jun 26

PAT(Latest six months) At Rs 224.42 cr has Grown at 52.80%
OPERATING PROFIT TO INTEREST(Q) Highest at 7.28 times
CASH AND CASH EQUIVALENTS(HY) Highest at Rs 179.31 cr

With ROCE of 7.3, it has a Attractive valuation with a 1.2 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 10.68%, its profits have fallen by -3.3%

Majority shareholders : Promoters

With its market cap of Rs 6,926 cr, it is the biggest company in the sector and constitutes 27.80% of the entire sector

Its annual Sales of Rs 7,318.60 are 24.80% of the industry

Real-Time Research Report

Verdict Report

How much should you buy?

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, High Return

Absolute

Risk Adjusted

Volatility

JK Paper

11.04%

0.27

39.56%

Sensex

-2.64%

-0.20

13.57%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

19.99%

EBIT Growth (5y)

2.44%

EBIT to Interest (avg)

5.30

Debt to EBITDA (avg)

2.18

Net Debt to Equity (avg)

0.36

Sales to Capital Employed (avg)

0.85

Tax Ratio

24.91%

Dividend Payout Ratio

20.67%

Pledged Shares

Institutional Holding

17.67%

ROCE (avg)

16.90%

ROE (avg)

16.60%

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

1.25

EV to EBIT

15.39

EV to EBITDA

9.23

EV to Capital Employed

1.19

EV to Sales

1.22

PEG Ratio

Dividend Yield

1.22%

ROCE (Latest)

7.31%

ROE (Latest)

5.05%

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Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

Mildly Bullish

RSI

No Signal

Bollinger Bands

Mildly Bullish

Moving Averages

Bullish (Daily)

KST

Mildly Bearish

Mildly Bullish

Dow Theory

No Trend

OBV

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

18What is working for the Company

PAT(Latest six months)

At Rs 224.42 cr has Grown at 52.80%

OPERATING PROFIT TO INTEREST(Q)

Highest at 7.28 times

CASH AND CASH EQUIVALENTS(HY)

Highest at Rs 179.31 cr

PBDIT(Q)

Highest at Rs 289.76 cr.

OPERATING PROFIT TO NET SALES(Q)

Highest at 15.35%

PBT LESS OI(Q)

Highest at Rs 151.14 cr.

EPS(Q)

Highest at Rs 7.18

-5What is not working for the Company

ROCE(HY)

Lowest at 7.55%

DEBT-EQUITY RATIO(HY)

Highest at 0.47 times

DEBTORS TURNOVER RATIO(HY)

Lowest at 12.99 times

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Here's what is working for JK Paper

Operating Profit to Interest - Quarterly

Highest at 7.28 times

in the last five quarters

MOJO Watch

The company's ability to manage interest payments is improving

Operating Profit to Interest

Profit Before Tax less Other Income (PBT) - Quarterly

At Rs 151.14 cr has Grown at 61.66%

Year on Year (YoY)

MOJO Watch

Near term PBT trend is very positive

PBT less Other Income (Rs Cr)

Profit After Tax (PAT) - Quarterly

At Rs 130.12 cr has Grown at 64.5%

Year on Year (YoY)

MOJO Watch

Near term PAT trend is very positive

PAT (Rs Cr)

Operating Profit (PBDIT) - Quarterly

Highest at Rs 289.76 cr.

in the last five quarters

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (Rs Cr)

Operating Profit Margin - Quarterly

Highest at 15.35%

in the last five quarters

MOJO Watch

Company's efficiency has improved

Operating Profit to Sales

Profit Before Tax less Other Income (PBT) - Quarterly

Highest at Rs 151.14 cr.

in the last five quarters

MOJO Watch

Near term PBT trend is positive

PBT less Other Income (Rs Cr)

Profit After Tax (PAT) - Quarterly

Highest at Rs 130.12 cr.

in the last five quarters

MOJO Watch

Near term PAT trend is positive

PAT (Rs Cr)

Earnings per Share (EPS) - Quarterly

Highest at Rs 7.18

in the last five quarters

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (Rs)

Cash and Cash Equivalents - Half Yearly

Highest at Rs 179.31 cr

in the last six half yearly periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Here's what is not working for JK Paper

Debt-Equity Ratio - Half Yearly

Highest at 0.47 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

Debtors Turnover Ratio- Half Yearly

Lowest at 12.99 times

in the last five half yearly periods

MOJO Watch

Company's pace of settling its Debtors has slowed

Debtors Turnover Ratio

Non Operating Income - Quarterly

Highest at Rs 31.14 cr

in the last five quarters

MOJO Watch

Increased income from non business activities may not be sustainable

Non Operating Income