JK Paper Ltd Stock Analysis

BSE: 532162 | NSE: JKPAPER | Paper & Paper Products | Mid Cap

BSE Share Price 23-Sep-2022 18:01
385.05 -13.35 (-3.35%)

DeciZen - Make an Informed Decision on JK Paper

Overall Rating

1. Quality

2. Valuation

Overvalued

3. Price Trend

JK Paper Price Chart

P/E Ratio (SA) :
10.55
Market Cap :
6,522.8 Cr.
52-wk low :
192
52-wk high :
450
Bole Toh?

1. Is JK Paper Ltd a good quality company?

Past 10 year's financial track record analysis by Moneyworks4me indicates that JK Paper Ltd is a average quality company.

2. Is JK Paper Ltd undervalued or overvalued?

The key valuation ratios of JK Paper Ltd's currently when compared to its past seem to suggest it is in the Overvalued zone.

3. Is JK Paper Ltd a good buy now?

The Price Trend analysis by MoneyWorks4Me indicates it is Strong which suggest that the price of JK Paper Ltd is likely to Rise in the short term. However, please check the rating on Quality and Valuation before investing

10 Year X-Ray of JK Paper:

Analysis of Financial Track Record

Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end
Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end

Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end.

Financial track record gives insight into the company's performance on key parameters over the past ten years. MoneyWorks4me’s proprietary colour codes make it easy for retail investors to gauge the company’s past performance.
JK Paper Ltd has performed well in some of the past ten years indicating its past ten year financial track record is somewhat good

Value Creation

Value Creation Index Colour Code Guide

Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22TTM
ROCE % 2.7%0.8%4.6%6.8%9.4%11.8%16.2%15.9%9.7%12.1%-
Value Creation Index -0.8-0.9-0.7-0.5-0.3-0.20.20.1-0.3-0.1-

Growth Parameters

Growth Parameters Colour Code Guide

Sales 1,5901,8872,1592,4372,6292,8443,2563,0542,7423,9814,756
YoY Gr. Rt. %-18.7%14.4%12.9%7.9%8.2%14.5%-6.2%-10.2%45.2%-
Adj EPS 2-4.5-0.54.19.814.2242720.933.536.5
YoY Gr. Rt. %--329.3%NANA136.1%45.9%68.9%12.3%-22.7%60.7%-
BVPS (₹) 61.856.554.874.884.793.8114.5132.9153.5179.7191.8
Adj Net Profit 27.1-62.1-6.961.4152250428481353568618
Cash Flow from Ops. 124130254404561555913636560599-
Debt/CF from Ops. 14.116.88.24.732.41.52.24.14.4-

CAGR

CAGR Colour Code Guide

9 Years 5 Years 3 Years 1 Years
Sales 10.7%8.7%6.9%45.2%
Adj EPS 36.9%28%11.8%60.7%
BVPS 12.616.216.217.1
Share Price 27% 28.5% 40.4% 63.3%

Key Financial Parameters

Performance Ratio Colour Code Guide

Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22TTM
Return on Equity % 3.1-7.4-0.96.512.516.823.221.814.220.119.6
Op. Profit Mgn % 8.6712.315.819.521.126.829.724.726.223.7
Net Profit Mgn % 1.7-3.3-0.32.55.88.813.115.712.914.313
Debt to Equity 2.12.82.81.71.30.80.70.60.90.9-
Working Cap Days 150137128997978721011421190
Cash Conv. Cycle 34372925231962-3-40

Recent Performance Summary

Return on Equity has increased versus last 3 years average to 19.60%

Net Profit is growing at healthy rate in last 3 years 11.76%

Debt to equity has declined versus last 3 years average to 0.87

Sales growth is good in last 4 quarters at 63.44%

Sales growth has been subdued in last 3 years 6.92%

Latest Financials - JK Paper Ltd.

Standalone Consolidated
TTM EPS (₹) 36.5 41.4
TTM Sales (₹ Cr.) 4,756 4,738
BVPS (₹.) 191.8 192.5
Reserves (₹ Cr.) 3,080 3,091
P/BV 2.01 2.00
PE 10.55 9.31
From the Market
52 Week Low / High (₹) 192.00 / 449.95
All Time Low / High (₹) 13.44 / 449.95
Market Cap (₹ Cr.) 6,523
Equity (₹ Cr.) 169.4
Face Value (₹) 10
Industry PE 11.2

Management X-Ray of JK Paper :

Shareholding Pattern

Promoter's Holding & Share Pledging

Pledged *0.000.000.000.000.000.000.000.000.000.00
* Pledged shares as % of Promoter's holding (%)

Event Update

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Analyst's Notes

Key Ratios of JK Paper

Adj EPS (Rs.)
Sales (Cr.)
ROE (%)
ROCE (%)

News

About JK Paper Ltd

Established in 1962, JK Paper Limited is the leading player in Office papers, Coated papers and Packaging boards. The company is a part of the prominent JK Organisation. It has two integrated Pulp and Paper Mills viz; Unit JKPM at Rayagada (Odisha) near the Eastern coast of India and Unit CPM, Songadh (Gujarat) on the Western coast. In August 2018, the company has acquired Sirpur Paper Mills - located in Telangana. From being the pioneer of branded paper in India, the company today is a leading exporter of Branded Copier Papers and Packaging Boards exporting to many countries covering USA, Middle-East, South-east Asia, SAARC and African countries.

The company is accredited with ISO 45001, ISO 9001 and ISO 14001 certification, validating JK Paper’s compliance with stringent quality management norms and environment norms, respectively. The FSC certification was bestowed upon the company, which speaks volumes about JK Paper’s health & safety policies and sustainable wood procurement policies.

Business area of the company

JK Paper is one of the most respected paper companies in India today. The company’s diversified product portfolio comprises office paper, writing and printing paper to packaging board and specialty paper, among others. It enjoys a rich experience of many decades, which has enabled it to emerge as one of the biggest wood-based paper companies in India as well as a leader in the branded office paper segment.

Products

The company offers a wide product range and its brands are synonymous with premium quality paper:

  • Office papers- JK Cedar , JK Copier, JK Easy Copier, JK Sparkle,JK Copier Plus JK Excel Bond, JK Sparkle, JK CMax, JK Max, JK Copier A5, JK Sparkle A5, JK Copier Slims.
  • Packaging boards- JK TuffCote, JK Ultima ,JK TuffPac , JK IV Board, JK Endura, JK Tuffcup.
  • Printing & Writing Papers- JK Cote , JK Ledger, JK SHB, JK Evervite, JK Finesse ,JK Elektra, JK Lumina, JK Ultraprint, JK Esay Draw, JK Buff File Board, JK Braille.
  • Speciality Papers- MICR Cheque paper, Parchment, Cedar digital, JK Envelope, JK Carry, JK Tally, JK Oleoff, JK Ecosip.

Awards and recognitions

2011-12:

  • Unit JKPM has been awarded the Greentech Environment Excellence Award for Outstanding achievement in Safety Management.
  • Unit JKPM has been awarded Silver Award in Paper Sector from Greentech Foundation.
  • Unit CPM has been awarded the CII National HR Excellence Award – Strong Commitment to HR Excellence, 2011.
  • Greentech Foundation CSR Gold Award - 2011.

2012-13:

  • Unit - JKPM has been awarded Greentech award for outstanding achievement in Safety Management.
  • Unit - JKPM has been awarded Gold award in paper sector by Greentech Foundation for Environment Management.
  • Unit - JKPM has been awarded Silver award in paper sector for CSR by Greentech Foundation.
  • Unit - CPM has been awarded the Greentech Environment Gold Award 2012 in paper sector for outstanding achievement.
  • Unit - CPM has been awarded Winner of Golden Peacock environment management Award 2012.

2013-14:

  • Unit - JKPM has been awarded the Green Manufacturing Excellence Award-2013 from Frost & Sullivan.
  • Unit - JKPM has been awarded Greentech Award-2013 for outstanding achievement in Safety.
  • Unit - CPM has been awarded the Greentech HR Silver Award-2013 for outstanding achievement in paper sector.
  • Unit - CPM has been awarded IPMA Award-2013 for Energy Conservation.

2016-17:

  • Adjudged amongst the top 5 globally for Mill Manager Award & Environment Management award by PPI in Belgium.
  • Received the ‘Par Excellence and ‘Excellence’ Awards at the National-level Quality Circle Convention on Quality Concepts in Raipur.
  • Received an award for ‘Outstanding achievement in the areas of Environment Management’ by Greentech Foundation.
  • Received an award for ‘Excellent Energy Efficient Unit’ in the paper sector during the Energy Management Summit, 2016.

2017-18:

  • Best performance award at the Krushi and Pranisampad Mahostav by the Rayagada district administration.
  • Best performance award on CSR by the National Board of Workers Education & Development.
  • The Federation of Indian Chambers of Commerce and Industry (FICCI) appreciation certificate for being a socially responsible corporate.
  • The Odisha CSR Forum acknowledged Sparsh’s work by presenting the CSR Excellence award for sustainable livelihoods.

2018-19:

  • Received the Best Performance Award at the Krushi and Pranisampad Mahostav from the Rayagada district administration.
  • Received the Best Performance Award (Corporate Social Responsibility) from the Central Board for Workers Education.
  • Received a Certificate of Appreciation for being a socially-responsible corporate from the Federation of Indian Chambers of Commerce and Industry.
  • Received the CSR Excellence Award from the Odisha CSR Forum in acknowledgement of Sparsh’s work in the area of sustainable livelihood creation.

2019-20:

  • During the year under review, South Gujarat Chamber of Commerce & Industries (SGCCI) awarded JK Paper with 'Outstanding achievement in social welfare'.
  • JK Paper featured in the Economic Times CSR compendium 2020.
  • JK Paper was recognised for their commendable work as a socially responsible company in the18th FICCI Corporate Social Responsibility Awards.

Milestones

  • 1938: Started manufacturing straw boards at Bhopal with a capacity of 3,600 tonnes per annum.
  • 1962: Installed the first fine paper machine at Unit - JKPM (Odisha).
  • 1992: Acquired Unit - CPM (Gujarat).
  • 2005: Commissioned a coating plant at Unit - JKPM (Odisha).
  • 2007: Commissioned a premium packaging board plant at Unit - CPM (Gujarat).
  • 2013: Commissioned a state-of-the-art new fibre line and high-speed paper manufacturing machine at Unit - JKPM (Odisha) with a capacity of 1,65,000 tonnes per annum.
  • 2018: Acquired Sirpur Paper Mills in Telangana with a capacity of 1,36,000 metric tonnes per annum.
  • 2019: JKPL was certified as a Great Place to Work and the Unit CPM of the Company was awarded the Dr. B.L. Bihani, the Memorial Award for Best Paper (National) at PaperEx 2019.
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