Low PE high ROE multibagger stock: Watch out for this stock that skyrocketed over 12 per cent on March 17

The stock has a PE of 7x and an ROE of 25 per cent with multibagger returns of of 391.25 per cent in the last 3 years.

On Friday, on of the Top Gainers on BSE, shares of JK Paper surged 12.14 per cent to an intraday high of Rs 393 per share from its previous closing of Rs 350.45. At 03:30 pm, shares of this S&P BSE 500 company ended the day in green, up 9.94 per cent to Rs 385.30 per share.  

Today, shares of the company saw a spurt in volume by more than 7.08 times on BSE. The stock has a 52-week high of Rs 452.50 and a 52-week low of Rs 267.50. The stock gave multibagger returns of 391.25 per cent in the last 3 years.   

JK Paper is the leading player in office papers, coated papers and packaging boards established in 1962. It has a robust distribution network of over 300 trade partners and 4000 dealers with 15 pan-India depots, reducing the turnaround time in servicing customers.   

JK Paper has a market cap of Rs 6,527.07 crore. The company reported excellent numbers in both Quarterly Results and annual results. In Q3FY23, net sales rose by 60.51 per cent and net profit skyrocketed 119.24 per cent over Q3FY22. In FY22, net sales rose by 44.27 per cent and net profit skyrocketed 126.13 per cent over FY21.   

The stock has a PE of 7x whereas industry PE 14.2x with an ROE of 25 per cent respectively. Investors should keep this Mid-Cap stock under their watchlist.