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Last Updated on: 26 February, 2024|Author: Getaka | Social: X Twitter Profile
Stock Ticker - BSE: 532162 | NSE: JKPAPER

Fundamental Analysis of JK Paper Ltd

About the Company - JK Paper Ltd

JK Paper Ltd. is a Public Limited Listed company incorporated on 04/07/1960 and has its registered office in the State of Gujarat, India. Company’s Corporate Identification Number(CIN) is L21010GJ1960PLC018099 and registration number is 018099. Currently Company is involved in the business activities of Manufacture of pulp, paper and paperboard. Company’s Total Operating Revenue is Rs. 3980.67 Cr. and Equity Capital is Rs. 169.40 Cr. for the Year ended 31/03/2022.
INDUSTRYADDRESSCONTACT
Paper & Paper ProductsP.O. Central Pulp Mills, Fort Songadh, Tapi Dist. Gujarat 394660cpm@cpmjk.jkmail.com
http://www.jkpaper.com
Management
NamePosition Held
Mr. Bharat Hari SinghaniaChairman
Mr. Harsh Pati SinghaniaVice Chairman & Mng.Director
Mr. A S MehtaPresident & Director
Mrs. Deepa Gopalan WadhwaDirector
Mr. Dhirendra KumarDirector
Mr. R V KanoriaDirector
Mr. Sandip SomanyDirector
Mr. Shailendra SwarupDirector
Mr. S K RoongtaDirector
Mrs. Vinita SinghaniaDirector
Mr. Anoop SethDirector
Mr. Bharat AnandDirector
Mr. Harshavardhan NeotiaDirector

JK Paper Ltd. Share Price Update

Share PriceValue
Today₹390.75
Previous Day₹381.25

Basic Stock Data of JK Paper Ltd

Market Cap 6,414 Cr.
Current Price 379
High / Low452/306
Stock P/E5.69
Book Value 272
Dividend Yield2.11 %
ROCE28.5 %
ROE34.0 %
Face Value 10.0

Data Source: screener.in

Competitors of JK Paper Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
Shrenik Ltd 67.3 Cr. 1.101.70/0.85 0.960.00 %1.56 %0.35 % 1.00
NR Agarwal Industries Ltd 768 Cr. 452538/1965.93 4200.00 %21.6 %17.1 % 10.0
Ruchira Papers Ltd 400 Cr. 134164/91.15.85 1383.76 %24.0 %19.7 % 10.0
Seshasayee Paper & Boards Ltd (SESHAPAPER) 2,159 Cr. 342422/2206.51 2811.75 %36.5 %27.4 % 2.00
Satia Industries Ltd 1,288 Cr. 129155/1015.91 85.30.78 %20.3 %30.0 % 1.00
Industry Average247.66 Cr211.624.84185.051.26%20.79%18.91%4.8

JK Paper Ltd Quarterly Results

MonthSep 2020Dec 2020Mar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023
Sales6387458986619441,0241,3401,4301,6441,6431,7191,5841,650
Expenses5235906704707257721,0041,0071,1051,0781,2361,1071,243
Operating Profit116155228190220251336423539565484477407
OPM %18%21%25%29%23%25%25%30%33%34%28%30%25%
Other Income22263734353322351449415559
Interest32332833372932293694635142
Depreciation45444443454560656770818084
Profit before tax61103194148173210266364451451381401341
Tax %45%37%30%30%31%28%36%27%27%26%26%22%10%
Net Profit3365136104118151170264327334284313306
EPS in Rs1.993.898.026.146.998.8710.0415.4619.1419.4416.5418.2217.85

JK Paper Ltd Quarterly Chart

JK Paper Ltd Profit & Loss

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023TTM
Sales1,3301,4591,7382,1602,4372,6292,8443,2573,0602,7513,9696,4376,597
Expenses1,1791,3201,5971,9022,0422,1122,2262,3882,1892,1882,9714,4254,663
Operating Profit1511391412593965176188688715639972,0121,934
OPM %11%10%8%12%16%20%22%27%28%20%25%31%29%
Other Income2526-537352250104111124139204
Interest5154129205195188143124129129132222250
Depreciation7474127116118121122128149174193282314
Profit before tax5138-119-60892443756666963707971,6461,573
Tax %6%0%37%69%32%28%31%36%33%36%32%27%
Net Profit4938-75-18561722614254682375441,2081,235
EPS in Rs3.552.78-5.47-1.353.7711.0214.8523.9726.6714.1632.0370.5972.05
Dividend Payout %42%180%0%0%13%14%17%15%15%28%17%11%

JK Paper Ltd Profit & Loss Yearly Chart

YoY Net Profit Growth
Year2012-20132013-20142014-20152015-20162016-20172017-20182018-20192019-20202020-20212021-20222022-2023
YoY Net Profit Growth (%)-22.45%-297.37%76.00%411.11%207.14%51.74%62.84%10.12%-49.36%129.54%122.06%
Change in YoY Net Profit Growth (%)0.00%-274.92%373.37%335.11%-203.97%-155.40%11.09%-52.72%-59.48%178.89%-7.48%

JK Paper Ltd Growth

Compounded Sales Growth
10 Years:16%
5 Years:18%
3 Years:28%
TTM:10%
Compounded Profit Growth
10 Years:50%
5 Years:36%
3 Years:38%
TTM:2%
Stock Price CAGR
10 Years:29%
5 Years:24%
3 Years:39%
1 Year:-3%
Return on Equity
10 Years:18%
5 Years:22%
3 Years:22%
Last Year:34%

JK Paper Ltd Balance Sheet

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Sep 2023
Equity Capital137137137137149156176178178169169169169
Reserves7147396646399541,1651,4681,8602,1872,3472,8273,8654,439
Preference Capital00000004851545862
Borrowings1,0941,7842,2482,1041,8921,6981,3101,5151,7312,7363,0792,7412,482
Other Liabilities4394434914484855776569691,1941,3031,5502,1452,123
Total Liabilities2,3833,1033,5383,3283,4783,5963,6084,5225,2906,5557,6258,9209,214
Fixed Assets8588242,5772,3702,7522,6882,6542,7063,1423,0315,2805,7565,784
CWIP5841,54123272016373294001,7044612497
Investments646694702591526754916417249311,424
Other Assets8777328709276366337668121,2581,1801,5742,1101,909
Total Assets2,3833,1033,5383,3283,4783,5963,6084,5225,2906,5557,6258,9209,214

JK Paper Ltd Reserves and Borrowings Chart

JK Paper Ltd Cash Flow

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Cash from Operating Activity 13911372604055655608795584757741,762
Cash from Investing Activity -602-794-332-14-34-26240-1,115-395-1,282-874-948
Cash from Financing Activity 706589173-240-373-289-507140-148784103-787
Net Cash Flow117-114-226-21493-9715-22327

JK Paper Ltd Financial Efficiency Indicators

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Debtor Days4030362521151489102020
Inventory Days77879810283949478133106110105
Days Payable675571654757616210211011184
Cash Conversion Cycle50626262575347244071940
Working Capital Days12221935-15-16-15-1112475150
ROCE %6%3%1%5%10%13%17%23%21%10%16%28%

JK Paper Ltd Financial Efficiency Indicators Chart

JK Paper Ltd Share Holding Pattern

MonthDec 2020Mar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023
Promoters51.44%51.44%51.44%49.52%49.52%49.63%49.63%49.64%49.64%49.64%49.64%49.64%
FIIs4.73%4.47%4.73%4.59%3.89%3.53%3.43%6.05%9.43%11.49%10.46%10.90%
DIIs0.25%0.78%1.53%1.89%2.52%3.50%5.86%4.46%2.92%2.85%3.11%3.18%
Public43.58%43.31%42.30%44.00%44.07%43.34%41.07%39.85%38.01%36.04%36.79%36.29%
No. of Shareholders1,08,19185,78283,19297,9111,10,18595,4031,02,1761,12,1581,25,3971,25,2711,38,9681,40,739

JK Paper Ltd Shareholding Pattern Chart

No. of JK Paper Ltd Shareholders

JK Paper Ltd Mutual Fund Holdings

Fund NameNo of SharesAUM (%)Amount Invested (Cr)
L&T Large and Midcap Fund - Regular Plan1739760.457.22
Navi Flexi Cap Fund1000001.543.67
Navi Large & Midcap Fund - Regular Plan930001.273.41
Nippon India Nifty Smallcap 250 Index Fund484530.211.78
Motilal Oswal Nifty Smallcap 250 Index Fund296070.211.09
Navi ELSS Tax Saver Fund - Regular Plan250001.510.92
SBI Nifty Smallcap 250 Index Fund231300.210.85
Motilal Oswal Nifty 500 Index Fund32300.020.12
Edelweiss Nifty Smallcap 250 Index Fund12140.210.04
Groww Nifty Total Market Index Fund2160.020.01

JK Paper Ltd ROCE Trend

JK Paper Ltd EPS Trend

JK Paper Ltd Key Financial Ratios

MonthMar 23Mar 22Mar 21Mar 20Mar 19
FaceValue10.0010.0010.0010.0010.00
Basic EPS (Rs.)70.5932.0313.7326.2823.88
Diluted EPS (Rs.)70.5932.0313.7326.2823.82
Cash EPS (Rs.)87.9643.5024.2634.6731.00
Book Value[Excl.RevalReserv]/Share (Rs.)244.02175.40146.98131.42116.75
Book Value[Incl.RevalReserv]/Share (Rs.)244.02175.40146.98131.42116.75
Revenue From Operations / Share (Rs.)379.98234.27162.38171.69182.71
PBDIT / Share (Rs.)128.9566.2139.7354.7151.51
PBIT / Share (Rs.)112.3154.8129.4546.3244.35
PBT / Share (Rs.)97.1947.0321.8539.0737.37
Net Profit / Share (Rs.)71.3232.1013.9726.2823.84
NP After MI And SOA / Share (Rs.)70.5932.0314.1626.6723.97
PBDIT Margin (%)33.9328.2624.4631.8628.19
PBIT Margin (%)29.5523.3918.1326.9824.27
PBT Margin (%)25.5720.0713.4522.7520.45
Net Profit Margin (%)18.7713.708.6015.3013.04
NP After MI And SOA Margin (%)18.5713.678.7215.5313.11
Return on Networth / Equity (%)29.8718.299.6520.3621.04
Return on Capital Employeed (%)26.0914.679.2219.3521.46
Return On Assets (%)13.407.113.668.989.44
Long Term Debt / Equity (X)0.520.870.940.610.63
Total Debt / Equity (X)0.681.031.020.660.64
Asset Turnover Ratio (%)0.800.580.480.650.83
Current Ratio (X)1.661.561.411.391.67
Quick Ratio (X)1.161.161.070.901.25
Inventory Turnover Ratio (X)3.873.212.453.073.57
Dividend Payout Ratio (NP) (%)13.4512.480.0033.9012.57
Dividend Payout Ratio (CP) (%)10.899.210.0025.799.67
Earning Retention Ratio (%)86.5587.520.0066.1087.43
Cash Earning Retention Ratio (%)89.1190.790.0074.2190.33
Interest Coverage Ratio (X)9.828.505.237.547.38
Interest Coverage Ratio (Post Tax) (X)6.585.122.844.624.42
Enterprise Value (Cr.)9281.038204.675064.522839.513876.57
EV / Net Operating Revenue (X)1.442.071.840.921.19
EV / EBITDA (X)4.257.317.522.914.22
MarketCap / Net Operating Revenue (X)1.001.300.920.430.78
Retention Ratios (%)86.5487.510.0066.0987.42
Price / BV (X)1.611.741.020.561.25
Price / Net Operating Revenue (X)1.001.300.920.430.78
EarningsYield0.180.100.090.350.16

JK Paper Ltd Profitability Ratios (%)

JK Paper Ltd Liquidity Ratios

JK Paper Ltd Liquidity Ratios (%)

JK Paper Ltd Interest Coverage Ratios (X)

JK Paper Ltd Valuation Ratios

Fair Value / Intrinsic Value of JK Paper Ltd

Fair Value: ₹537.31

The stock is undervalued by 41.77% compared to the current price ₹379

*Investments are subject to market risks

Strength and Weakness of JK Paper Ltd

StrengthWeakness
  1. The stock has a low average Working Capital Days of 15.92, which is a positive sign.
  2. The company has higher reserves (1,836.00 cr) compared to borrowings (21.00 cr), indicating strong financial stability.
  3. The company has shown consistent growth in sales (2.62 cr) and profit (242.23 cr) over the years.
  1. The stock is trading at a high valuation with an average P/B ratio of 57.45 and average Dividend Yield of 24.46%.
  2. The stock has a low average ROCE of 12.75%, which may not be favorable.
  3. The stock has a high average Cash Conversion Cycle of 43.58, which may not be favorable.

Should I Buy JK Paper Ltd Share Now?

  • Considering various financial indicators, investors might exercise caution regarding investment in JK Paper Ltd:
    1. Net Profit Margin: 18.77%
      • Net Profit Margin: This metric indicates the percentage of profit a company makes from its total revenue. A higher net profit margin is generally desirable as it reflects better profitability.
    2. ROCE: 26.09% (Industry Average ROCE: 25.87%)
      • ROCE (Return on Capital Employed): ROCE measures a company's profitability and the efficiency with which its capital is employed. A higher ROCE indicates efficient use of capital.
    3. Interest Coverage Ratio (Post Tax): 6.58
      • Interest Coverage Ratio: The interest coverage ratio measures a company's ability to cover its interest payments on outstanding debt. A ratio greater than 2 is generally considered healthy as it indicates the company can meet its interest obligations comfortably.
    4. Quick Ratio: 1.16
      • Quick Ratio: The quick ratio assesses a company's ability to cover its short-term liabilities with its most liquid assets. A ratio higher than 1 suggests the company can meet its short-term obligations without relying heavily on inventory.
    5. ✗ Stock P/E: 5.72 (Industry average Stock P/E: 4.62)
      • Stock P/E (Price-to-Earnings) Ratio: The P/E ratio compares a company's current share price to its earnings per share. A lower P/E ratio relative to industry peers or historical values may indicate that the stock is undervalued.
    6. ✓ Total Debt / Equity: 0.68
      • Total Debt / Equity: This ratio measures a company's financial leverage by comparing its total debt to its total equity. A lower ratio indicates lower financial risk and greater financial stability.
    The current analysis suggests exercising caution. It's advisable to conduct further research or consult with financial experts before considering any investment.

About the Author

Author Avatar
Getaka

Getaka, CFA, a financial analyst with 15 years of experience in the industry. Getaka holds an MBA degree and the Chartered Financial Analyst designation, demonstrating his profound understanding of financial analysis and investment management. Throughout his career, he has conducted numerous financial analyses and due diligence processes for companies in the industry, and has a strong track record of identifying key trends and opportunities. He leverages his expertise to deliver a thorough financial analysis of a company, encompassing its financial performance, key ratios, future prospects, and risks. Getaka is committed to providing accurate, reliable, and trustworthy information to help readers make informed decisions about their finances and investments.

Disclaimer: This article is for informational purposes only and should not be construed as financial advice. The author is not a SEBI registered financial advisor and does not have any vested interest in JK Paper Ltd. Investors are advised to conduct their own due diligence and consult with a financial professional before making any investment decisions. The information provided in this article is based on publicly available data and the author's analysis, but it may not be comprehensive or up-to-date. The author and getaka.co.in are not responsible for any errors or omissions in the content. This article is not intended to promote any particular investment strategy or recommendation, and readers should consult with their own financial advisors before making any investment decisions. Data Source: NSE