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JK Paper Ltd Stock Analysis

Small Cap
Evaluated by 1450 users | BSE: 532162 | NSE: JKPAPER |
Paper & Paper Products

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...

Analysis of Financial Track Record

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 not performed well majority of the past ten years indicating its past ten year financial track record is not good
Value Creation
 Mar'11Mar'12Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20
Return on Capital Employed 13.33%5.61%2.72%0.83%4.64%6.75%9.41%11.77%16.19%15.9%
Growth Parameters
Growth Parameters Colour Code Guide
Net Sales (Rs. Cr.) 1,3331,4381,5901,8872,1592,4372,6292,8443,2563,054
Y-o-Y Gr. Rt.-7.9%10.5%18.7%14.4%12.9%7.9%8.2%14.5%-6.2%
Adjusted EPS (Rs.) 13.23.691.98-4.54-0.54.139.7514.2224.0126.97
Y-o-Y Gr. Rt.--72.1%-46.3%-329.3%NANA136.1%45.9%68.9%12.3%
Book Value per Share (Rs.) 71.8659.7561.7956.5154.7774.8184.7393.77114.52132.86
Adjusted Net Profit 10750.427.1-62.1-6.961.4152250428481
Net Op. Cash Flow (Rs. Cr.) 2295.2124130254404561555913636
Debt to Cash Flow from Ops 2.35211.1114.1116.818.224.693.022.361.482.15
Standalone financials take only the parent company into account while consolidated financials take into account financials of the parent company as well as of all its subsidiaries. In most companies consolidated financials should be used for analysis.
JK Paper Ltd. should be analysed on a Standalone basis
CAGR
CAGR Colour Code Guide
  9 yrs 5 yrs 3 yrs 1 yr
Net Sales 9.7%7.2%5.1%-6.2%
Adjusted EPS 8.3%NA40.4%12.3%
Book Value per Share 7.119.416.216
Share Price 14.8% 22.4% -3% 40.7%
Key Financial Parameter
Performance Ratio Colour Code Guide
 Mar'11Mar'12Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20
Return on Equity (%) 20.186.993.14-7.42-0.876.512.516.8223.2221.81
Operating Profit Margin (%) 19.7111.18.557.0112.3315.8319.4821.0826.7929.7
Net Profit Margin (%) 8.063.51.7-3.29-0.322.525.798.7713.1415.74
Debt to Equity 0.921.342.072.842.791.71.280.80.660.58
Working Capital Days 11114315013712899797872101
Cash Conversion Cycle 212834372925231962
Entity Percentage Holding
Promoters 51.44%
Institutions 5.25%
Non-Institutions 43.31%
Pledged *0.000.000.000.000.000.000.000.000.000.00
* Pledged shares as % of Promoter's holding (%)

MoneyWorks4Me analysed the past 10-year performance of JK Paper Ltd and arrived at the following conclusion:

Past 10 year's financial track record indicates that JK Paper Ltd is a below average quality company. However, for specific investment actions please connect with your investment advisor.

The 5-year analysis of JK Paper Ltd's performance infers:

JK Paper Ltd earnings have grown by 0%, whereas share price has appreciated 22.4% CAGR over the past five years, indicating the company's share price is likely overvalued. However, for specific investment actions please connect with your investment advisor.

We analysed the performance of JK Paper Ltd share prices over the last 10 years. Here is what we found out:

JK Paper Ltd share price has appreciated 10% annually over the past ten years.

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

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.
Puchho Befikar
SEBI Registered: Investment Adviser - INA000013323

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