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Last Updated on: 25 July, 2024
Author: Getaka|Social: Getaka Financial Services X (Earlier Twitter) Profile Getaka Financial Services LinkedIn Logo
Stock Ticker - BSE: 532162 | NSE: JKPAPER

Fundamental Analysis of JK Paper Ltd

Basic Stock Data

Last Updated: July 24, 2024, 11:40 pm

Market Cap 9,558 Cr.
Current Price 564
High / Low639/319
Stock P/E10.0
Book Value 299
Dividend Yield1.42 %
ROCE21.3 %
ROE24.6 %
Face Value 10.0
PEG Ratio0.50

Data Source: screener.in

Competitors of JK Paper Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
Encode Packaging India Ltd 4.27 Cr. 13.518.7/5.6738.8 10.60.00 %3.24 %3.34 % 10.0
Cella Space Ltd 27.1 Cr. 13.515.4/7.6929.2 10.30.00 %10.7 %% 10.0
Bandaram Pharma Packtech Ltd 36.0 Cr. 30.047.8/24.037.1 10.20.33 %9.10 %12.6 % 10.0
Agio Paper & Industries Ltd 9.16 Cr. 5.687.74/2.80 1.870.00 %0.90 %% 10.0
Star Paper Mills Ltd 394 Cr. 250288/1706.02 4151.40 %13.4 %10.5 % 10.0
Industry Average1,107.94 Cr154.15445.02143.490.70%28.16%87.52%6.26

Quarterly Result

MonthDec 2020Mar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023
Sales7458986619441,0241,3401,4301,6441,6431,7191,5841,6501,706
Expenses5906704707257721,0041,0071,1051,0781,2361,1071,2431,334
Operating Profit155228190220251336423539565484477407372
OPM %21%25%29%23%25%25%30%33%34%28%30%25%22%
Other Income26373435332235144941555956
Interest33283337293229369463514280
Depreciation44444345456065677081808483
Profit before tax103194148173210266364451451381401341265
Tax %37%30%30%31%28%36%27%27%26%26%22%10%11%
Net Profit65136104118151170264327334284313306236
EPS in Rs3.898.026.146.998.8710.0415.4619.1419.4416.5418.2217.8513.88

Last Updated: July 12, 2024, 10:10 pm

Quarterly Chart

Profit & Loss - Annual Report

Last Updated: July 10, 2024, 2:19 pm

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023TTM
Sales1,3301,4591,7382,1602,4372,6292,8443,2573,0602,7513,9696,4376,660
Expenses1,1791,3201,5971,9022,0422,1122,2262,3882,1892,1882,9714,4254,920
Operating Profit1511391412593965176188688715639972,0121,740
OPM %11%10%8%12%16%20%22%27%28%20%25%31%26%
Other Income2526-537352250104111124139211
Interest5154129205195188143124129129132222237
Depreciation7474127116118121122128149174193282327
Profit before tax5138-119-60892443756666963707971,6461,387
Tax %6%0%37%69%32%28%31%36%33%36%32%27%
Net Profit4938-75-18561722614254682375441,2081,138
EPS in Rs3.552.78-5.47-1.353.7711.0214.8523.9726.6714.1632.0370.5966.49
Dividend Payout %42%180%0%0%13%14%17%15%15%28%17%11%

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%

Growth

Compounded Sales Growth
10 Years:14%
5 Years:15%
3 Years:34%
TTM:3%
Compounded Profit Growth
10 Years:36%
5 Years:22%
3 Years:71%
TTM:-25%
Stock Price CAGR
10 Years:33%
5 Years:37%
3 Years:37%
1 Year:72%
Return on Equity
10 Years:20%
5 Years:23%
3 Years:26%
Last Year:25%

Last Updated: July 25, 2024, 4:18 am

Balance Sheet

Last Updated: July 10, 2024, 2:19 pm

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

Reserves and Borrowings Chart

Cash Flow

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Cash from Operating Activity 911372604055655608795584757741,7621,376
Cash from Investing Activity -794-332-14-34-26240-1,115-395-1,282-874-948-411
Cash from Financing Activity 589173-240-373-289-507140-148784103-787-938
Net Cash Flow-114-226-21493-9715-2232727

Free Cash Flow

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Free Cash Flow151.00138.00139.00257.00395.00516.00617.00867.00870.00561.00994.000.00

Free Cash Flow = Income Generated from Operational Activities - Borrowings - Capital Work in Progress (CWIP)

Consistent positive free cash flow is crucial for businesses as it indicates their ability to generate cash from their core operations. It provides financial flexibility, allowing companies to invest in growth opportunities, pay dividends to shareholders, reduce debt, and weather economic downturns more effectively.

Free Cash Flow Chart

Financial Efficiency Indicators

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Debtor Days3036252115148910202020
Inventory Days879810283949478133106110105100
Days Payable557165475761621021101118472
Cash Conversion Cycle62626257534724407194048
Working Capital Days221935-15-16-15-1112475150111
ROCE %3%1%5%10%13%17%23%21%10%16%28%

Financial Efficiency Indicators Chart

Share Holding Pattern

MonthSep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024
Promoters49.52%49.52%49.63%49.63%49.64%49.64%49.64%49.64%49.64%49.64%49.64%49.64%
FIIs4.59%3.89%3.53%3.43%6.05%9.43%11.49%10.46%10.90%10.75%9.26%12.09%
DIIs1.89%2.52%3.50%5.86%4.46%2.92%2.85%3.11%3.18%3.37%3.71%5.71%
Public44.00%44.07%43.34%41.07%39.85%38.01%36.04%36.79%36.29%36.25%37.39%32.56%
No. of Shareholders97,9111,10,18595,4031,02,1761,12,1581,25,3971,25,2711,38,9681,40,7391,43,4841,43,6141,23,165

Shareholding Pattern Chart

No. of Shareholders

Mutual Fund Holdings

Fund NameNo of SharesAUM (%)Amount Invested (Cr)Previous Number of SharesPrevious DatePercentage Change
HSBC Value Fund3,759,1001.22140.233,759,1002024-07-230%
L&T Large and Midcap Fund - Regular Plan173,9760.457.223,759,1002024-07-23-95.37%
Navi Flexi Cap Fund100,0001.483.733,759,1002024-07-23-97.34%
Navi Large & Midcap Fund - Regular Plan93,0001.253.473,759,1002024-07-23-97.53%
Nippon India Nifty Smallcap 250 Index Fund60,6990.192.263,759,1002024-07-23-98.39%
Motilal Oswal Nifty Smallcap 250 Index Fund31,1740.191.163,759,1002024-07-23-99.17%
SBI Nifty Smallcap 250 Index Fund30,5940.191.143,759,1002024-07-23-99.19%
Navi ELSS Tax Saver Fund - Regular Plan25,0001.490.933,759,1002024-07-23-99.33%
DSP Nifty Smallcap250 Quality 50 Index Fund19,5011.220.733,759,1002024-07-23-99.48%
ICICI Prudential Nifty Smallcap 250 Index Fund13,1280.190.493,759,1002024-07-23-99.65%

ROCE Trend

EPS Trend

Key Financial Ratios

MonthMar 24Mar 23Mar 22Mar 21Mar 20
FaceValue10.0010.0010.0010.0010.00
Basic EPS (Rs.)66.2270.5932.0313.7326.28
Diluted EPS (Rs.)59.1570.5932.0313.7326.28
Cash EPS (Rs.)85.2087.9643.5024.2634.67
Book Value[Excl.RevalReserv]/Share (Rs.)307.67244.02175.40146.98131.42
Book Value[Incl.RevalReserv]/Share (Rs.)307.67244.02175.40146.98131.42
Revenue From Operations / Share (Rs.)393.11379.98234.27162.38171.69
PBDIT / Share (Rs.)108.79128.9566.2139.7354.71
PBIT / Share (Rs.)90.48112.3154.8129.4546.32
PBT / Share (Rs.)78.2097.1947.0321.8539.07
Net Profit / Share (Rs.)66.8971.3232.1013.9726.28
NP After MI And SOA / Share (Rs.)66.2270.5932.0314.1626.67
PBDIT Margin (%)27.6733.9328.2624.4631.86
PBIT Margin (%)23.0129.5523.3918.1326.98
PBT Margin (%)19.8925.5720.0713.4522.75
Net Profit Margin (%)17.0118.7713.708.6015.30
NP After MI And SOA Margin (%)16.8418.5713.678.7215.53
Return on Networth / Equity (%)22.1229.8718.299.6520.36
Return on Capital Employeed (%)19.5226.0914.679.2219.35
Return On Assets (%)12.0213.407.113.668.98
Long Term Debt / Equity (X)0.330.520.870.940.61
Total Debt / Equity (X)0.430.681.031.020.66
Asset Turnover Ratio (%)0.720.800.580.480.65
Current Ratio (X)2.071.661.561.411.39
Quick Ratio (X)1.431.161.161.070.90
Inventory Turnover Ratio (X)3.963.873.212.453.07
Dividend Payout Ratio (NP) (%)0.0013.4512.480.0033.90
Dividend Payout Ratio (CP) (%)0.0010.899.210.0025.79
Earning Retention Ratio (%)0.0086.5587.520.0066.10
Cash Earning Retention Ratio (%)0.0089.1190.790.0074.21
Interest Coverage Ratio (X)8.869.828.505.237.54
Interest Coverage Ratio (Post Tax) (X)6.456.585.122.844.62
Enterprise Value (Cr.)7736.289281.038204.675064.522839.51
EV / Net Operating Revenue (X)1.161.442.071.840.92
EV / EBITDA (X)4.204.257.317.522.91
MarketCap / Net Operating Revenue (X)0.821.001.300.920.43
Retention Ratios (%)0.0086.5487.510.0066.09
Price / BV (X)1.081.611.741.020.56
Price / Net Operating Revenue (X)0.821.001.300.920.43
EarningsYield0.200.180.100.090.35

Profitability Ratios (%)

Liquidity Ratios

Liquidity Ratios (%)

Interest Coverage Ratios (%)

Valuation Ratios

Fair Value

Fair Value: 745.98

Calculation basis:

  • Fair value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100)
  • P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
  • Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance
  • Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
  • Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.

This formula allows us to gauge the fair value of the stock by analyzing its fundamental indicators.

Undervalued: 32.27% compared to the current price 564

Intrinsic Value: 895.52

Calculation basis:

  • Fair value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100) * (1 + EPS CAGR for Last 5 Years)
  • P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
  • Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance.
  • Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
  • Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.
  • EPS CAGR (Compound Annual Growth Rate): Represents the geometric mean growth rate of earnings per share over the last 5 years. It provides insight into the historical growth trajectory of the company's earnings.

This formula allows us to gauge the fair value of the stock by analyzing its fundamental indicators along with EPS growth.

Undervalued: 58.78% compared to the current price 564

Last 5 Year EPS CAGR: 20.05%

*Investments are subject to market risks

Strength and Weakness

StrengthWeakness
  1. The stock has a low average Working Capital Days of 24.17, which is a positive sign.
  2. The company has shown consistent growth in sales (2.62 cr) and profit (242.23 cr) over the years.
  1. The stock has a low average ROCE of 12.25%, which may not be favorable.
  2. The stock has a high average Cash Conversion Cycle of 43.42, which may not be favorable.
  3. The company has higher borrowings (2,109.58) compared to reserves (1,967.92), which may suggest financial risk.

Stock Analysis

  • Considering all of the following key financial indicators, prospective investors are encouraged to conduct thorough research and seek professional guidance before considering any investment in JK Paper Ltd:
    1. Net Profit Margin: 17.01%
      • 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: 19.52% (Industry Average ROCE: 28.16%)
      • 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. ✗ ROE%: 22.12% (Industry Average ROE: 87.52%)
      • ROE (Return on Equity): ROE measures a company's profitability relative to shareholders' equity. A higher ROE indicates efficient use of shareholders' funds.
    4. Interest Coverage Ratio (Post Tax): 6.45
      • 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.
    5. Quick Ratio: 1.43
      • 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.
    6. ✓ Stock P/E: 10.0 (Industry average Stock P/E: 445.13)
      • 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.
    7. ✓ Total Debt / Equity: 0.43
      • 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 is available for review. It's important to conduct thorough research and consider consulting with financial professionals before making any investment decisions.
    Stock Rating:

About the Company

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

FAQ

What is the latest fair value of JK Paper Ltd?

The latest fair value of JK Paper Ltd is ₹745.98.

What is the Market Cap of JK Paper Ltd?

The Market Cap of JK Paper Ltd is 9,558 Cr..

What is the current Stock Price of JK Paper Ltd as on 25 July 2024?

The current stock price of JK Paper Ltd as on 25 July 2024 is 564.

What is the High / Low of JK Paper Ltd stocks in FY 2024?

In FY 2024, the High / Low of JK Paper Ltd stocks is 639/319.

What is the Stock P/E of JK Paper Ltd?

The Stock P/E of JK Paper Ltd is 10.0.

What is the Book Value of JK Paper Ltd?

The Book Value of JK Paper Ltd is 299.

What is the Dividend Yield of JK Paper Ltd?

The Dividend Yield of JK Paper Ltd is 1.42 %.

What is the ROCE of JK Paper Ltd?

The ROCE of JK Paper Ltd is 21.3 %.

What is the ROE of JK Paper Ltd?

The ROE of JK Paper Ltd is 24.6 %.

What is the Face Value of JK Paper Ltd?

The Face Value of JK Paper Ltd is 10.0.

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