Check Before You Invest : JK Paper Ltd

Q: Which industry/sub-sector does JK Paper Ltd belong to?

JK Paper Ltd belongs to the Paper & Stationary sector, operating specifically within the Paper & Paper Products segment.

Q: Is JK Paper Ltd a good quality company?

JK Paper Ltd is a good quality company, based on a consistently good multi-year financial track record. This assessment is based on company’s performance on Revenue growth, ROCE, Equity and Assets, key margin ratios, cash conversion cycle, and debt to cash flow from operations and how it compares with its long term averages.

Q: Is JK Paper Ltd undervalued or overvalued?

JK Paper Ltd appears Somewhat overvalued, as its key valuation ratios are higher than their past averages. Based on the industry it operates in, the relevant valuation ratios include one of the following, P/E, P/BV, P/Sales, EV/EBITDA or a combination of two or more. Valuation Ratios. Price to Earnings, Current: 31.79, Historic Median: 9.86. Price to Book, Current: 1.4, Historic Median: 1.50. Price to Sales, Current: 1.23, Historic Median: 1.13. EV to EBITDA, Current: 11.65, Historic Median: 7.22

Q: Is JK Paper Ltd a good buy now?

JK Paper Ltd is a good buy now, based on strong price trend analysis suggesting prices may rise. However, you need to check its quality and valuation before making a decision

Q: Revenue growth of JK Paper Ltd?

JK Paper Ltd revenue growth is -2.2% for FY-2025, which is below its 5-year CAGR of 13.42%, indicating slower growth.

Q: Gross Profit margin of JK Paper Ltd?

JK Paper Ltd Gross profit margin which is the profit after deduction of direct costs, is 11.6% for FY-2025, which is below its 5-year median of 20.3%, indicating decreasing margins.

Q: Operating Profit Margin of JK Paper Ltd?

JK Paper Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 13.28% for FY-2025, which is below its 5-year median of 23.05% indicating decreasing margins.

Q: Net Profit Margin of JK Paper Ltd?

JK Paper Ltd Net Profit Margin is 6.37% for FY-2025, is below its 5-year median of 12.84%, indicating decreasing margins. Profitability Metrics. Gross Profit Margin (%), Current: 11.6, Historic Median: 20.3. Operating Profit Margin (%), Current: 13.28, Historic Median: 23.05. Net Profit Margin (%), Current: 6.37, Historic Median: 12.84

Q: Return on Asset of JK Paper Ltd?

JK Paper Ltd Return on Asset is 4.64%, which is below its 5-year historical median of 7.77%, indicating deteriorated asset utilization efficiency.

Q: Return on capital employed (ROCE) of JK Paper Ltd?

JK Paper Ltd Return on capital employed is 9.58% for FY-2025, which is below its 5-year historical median of 16.38%. The current ROCE is below its estimated weighted average cost of capital (WACC) of 14%, indicating value preservation.

Check Before You Invest : JK Paper Ltd

Snapshot

Q.1 Which industry/sub-sector does JK Paper Ltd belong to?

JK Paper Ltd belongs to the Paper & Stationary sector, operating specifically within the Paper & Paper Products segment.

Q.2 Is JK Paper Ltd a good quality company?

JK Paper Ltd is a good quality company, based on a consistently good multi-year financial track record.

This assessment is based on company’s performance on Revenue growth, ROCE, Equity and Assets, key margin ratios, cash conversion cycle, and debt to cash flow from operations and how it compares with its long term averages.

Q.3 Is JK Paper Ltd undervalued or overvalued?

JK Paper Ltd appears Somewhat overvalued, as its key valuation ratios are higher than their past averages.

Based on the industry it operates in, the relevant valuation ratios include one of the following, P/E, P/BV, P/Sales, EV/EBITDA or a combination of two or more.

Valuation Ratios	Current	5-year Historic Median
Price to Earnings	31.79	9.86
Price to Book	1.4	1.50
Price to Sales	1.23	1.13
EV to EBITDA	11.65	7.22

Q.4 Is JK Paper Ltd a good buy now?

JK Paper Ltd is a good buy now, based on strong price trend analysis suggesting prices may rise. However, you need to check its quality and valuation before making a decision

Performance Analysis

We have analysed the performance of the company on the following:

How has it performed on generating Profits?
By checking its Revenue growth, Gross, Operating and Net Margins compared to its last 5-year median.
How efficiently has it utilized Capital?
By checking its ROCE, ROA, ROE and its Cash Conversion Cycle.
How is it managing its Debt?
By checking its Debt to Equity and Cash Flow from Operations.

A: What are the trends in revenue and profit margins?

Q.1 Revenue growth of JK Paper Ltd?

JK Paper Ltd revenue growth is -2.2% for FY-2025, which is below its 5-year CAGR of 13.42%, indicating slower growth.

Q.2 Gross Profit margin of JK Paper Ltd?

JK Paper Ltd Gross profit margin which is the profit after deduction of direct costs, is 11.6% for FY-2025, which is below its 5-year median of 20.3%, indicating decreasing margins.

Q.3 Operating Profit Margin of JK Paper Ltd?

JK Paper Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 13.28% for FY-2025, which is below its 5-year median of 23.05% indicating decreasing margins.

Q.4 Net Profit Margin of JK Paper Ltd?

JK Paper Ltd Net Profit Margin is 6.37% for FY-2025, is below its 5-year median of 12.84%, indicating decreasing margins.

	Current Level	5-year Historic Median
Gross Profit Margin (%)	11.6	20.3
Operating Profit Margin (%)	13.28	23.05
Net Profit Margin (%)	6.37	12.84

B: Does the business utilize capital efficiently?

Q.5 Return on Asset of JK Paper Ltd?

JK Paper Ltd Return on Asset is 4.64%, which is below its 5-year historical median of 7.77%, indicating deteriorated asset utilization efficiency.

Q.6 Return on capital employed (ROCE) of JK Paper Ltd?

JK Paper Ltd Return on capital employed is 9.58% for FY-2025, which is below its 5-year historical median of 16.38%. The current ROCE is below its estimated weighted average cost of capital (WACC) of 14%, indicating value preservation.

Q.7 Return on Equity (ROE) of JK Paper Ltd?

JK Paper Ltd Return on equity is 7.78% for FY-2025, which is below its 5-year historical median of 18.11%, indicating the business is making worse use of its shareholders capital.

Q.8 Cash conversion cycle of JK Paper Ltd?

JK Paper Ltd Cash conversion cycle is 22 days, above its 5-year historical median of 1 days, indicating deteriorated working capital management. However, you need to compare this with its peers in the industry.

	Current Level	5-year Historic Median
Asset Turnover (x)	0.78	0.78
ROE (%)	7.78	18.11
ROCE (%)	9.58	16.38
Cash Conversion Cycle	22 days	1 days

C: How much debt does the business have and is it at a sustainable level?

Q.9 Debt to Equity ratio of JK Paper Ltd?

JK Paper Ltd Debt-to-Equity ratio is 0.31, which is lower the industry average of 0.48, indicating lower debt levels in the industry.

Q.10 Debt to cash flow from operations of JK Paper Ltd?

JK Paper Ltd Debt to cash flow from operations is 3.41, which is at a unhealthy level.

Ownership & governance

D: Promoter shareholding and pledge status of JK Paper Ltd?

Q.1 Promoter shareholding and pledge status of JK Paper Ltd?

Promoters hold 52.94% of the JK Paper Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

E: How does JK Paper Ltd performance compare with that of its Peers?

Q.1 Revenue growth of JK Paper Ltd vs industry peers?

JK Paper Ltd revenue CAGR is 13.42%, compared to the industry median CAGR of 5.29%, indicating faster growth and gaining its market share.

Profit Metrics

	Current Level	5-year Industry Median
Revenue Growth (%)	-2.2	5.3
Gross Profit Growth (%)	-42.8	3.9
Operating Profit Growth (%)	-41.4	0.8
Net Profit Growth (%)	-59.5	1.4

Operating Efficiency

	Current Level	5-year Industry Median
Asset Turnover (x)	0.78	0.91
ROE (%)	7.78	4.81
ROCE (%)	9.58	7.06
Cash Conversion Cycle (days)	21.5	47

Valuation & price assessment

Q.1 Stock return of JK Paper Ltd over the last decade?

Over the last 9 year(s), the stock has delivered a CAGR of 21.8% based on the current price.

	9Y	5Y	3Y	1Y
Share Price CAGR	21.8%	21.5%	-	22.8%

Q.2 Valuation ratios of JK Paper Ltd vs historical?

The current P/E ratio of 31.79 is higher than its historical median of 9.86, indicating that the stock is trading above its historical average valuation.

Q.3 How do the current valuation ratios compare with 5-year historical median and industry numbers?

Valuation Ratios	Current	5-year Historic Median	5-year Industry Median
Price to Earnings	31.79	9.86	11.02
Price to Book	1.4	1.50	0.91
Price to Sales	1.23	1.13	0.72
EV to EBITDA	11.65	7.22	6.12

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Check Before You Invest : JK Paper Ltd

Snapshot

Performance Analysis

Ownership & governance

Peer comparison (industry-wise, mcap)

Profit Metrics

Operating Efficiency

Valuation & price assessment

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Check trending companies

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