Fundamental Analysis

JK PAPER LTD.

Ticker : 532162  
BUY: ₹295.90
Target: ₹335

JK Paper is the leading player in office papers, coated papers, and packaging boards. The company has a robust distribution network of over 300 trade partners and 4,000 dealers with 15 pan-India depots, reducing the turnaround time in servicing customers. On a consolidated basis, the company recorded net sales and other operating income of Rs 1,023.62 crore, higher by 37.42 per cent than Rs 744.88 crore reported in Q3FY21. The operating profit was recorded at Rs 284.11 crore in Q3FY22, a rise of 57.18 per cent as compared to an operating profit of Rs 180.76 crore in Q3FY21. Q3FY22 recorded a net profit of Rs 151.05 crore in comparison with the net profit of Rs 64.59 crore in Q3FY21, improving strongly. Once again,the prices of pulp paper are witnessing a surge. Still, some companies are likely to post better-than-expected margins due to higher inventory. Hence, having an optimistic earnings outlook for major players like JK Paper, we recommend BUY.