moneycontrol.com network18online.com

 

SENSEX: 73651.35 655.04

NIFTY: 22326.90 203.25

Multi Baggers

Hem Securities

5.30 AM Jan 1st 1970

JK Paper

BSE ID : 532162     NSE ID : JKPAPER

RECOMMENDED PRICE 137.55

PEAK FROM RECO 452.50 228.97%

CURRENT PRICE 322.50 Resource id #18

JK Paper Limited is engaged in the manufacture and sale of branded papers and packaging boards. we recommend Buy on the stock with price target of Rs 180(appreciation of almost 30%) for long term investment.

JK Paper Limited is engaged in the manufacture and sale of branded papers and packaging boards. Incorporated in 1960, the Company has two large integrated manufacturing units – JK Paper Mills, Rayagada (Odisha) and Central Pulp Mills, Songadh (Gujarat) with a combined capacity of 4,55,000 tonnes per annum. JK Paper’s products are marketed across India via an extensive distribution network comprising over 4000 dealers, 191 wholesalers, 14 depots and 4 regional marketing offices. The Company is exporting to more than 40 countries including Sri Lanka, Bangladesh, Middle East, Africa, Australia, Singapore, Malaysia etc. JK Paper's flagship brand JK Copier is the largest selling copier brand in Sri Lanka.

Co has posted strong set of numbers in Q3FY18 with bottomline of company surging by almost more than 90% at Rs 69.81 Cr against Rs 35.89 Cr in Q3FY17.The rise was on account of increase in volumes and cost efficiency on raw material side with captive pulp wood from farm forestry .Also reduced finance cost by almost 20 % YoY from Rs 46.08 Cr in Q3 FY17 to Rs 36.97 Cr in Q3FY18 helps company in posting whopping growth in its bottomline during the Q3FY18. The co’s operating profit margin has shot up by almost 8% in Q3FY18 at 19.46 % from 18.10 % in Q3FY17while net profit margin of company has shown huge increase of more than 65 %`from 5.35 % in Q3FY17 to 8.83 % in Q3FY18.

The company is currently trading at 9.69x of FY18E eps of Rs 14.19 & 8.78x of FY19E EPS of Rs 15.65. On the back better product mix, increased operating efficiencies, reduced interest cost due to proper working capital management and decreasing debt, company is able to show strong financial performance. With the strong demand outlook from paper sector & co’s thrust towards organic & inorganic growth coupled with deleveraging its balance sheet , stock is all set to deliver strong performance going forward. Hence , we recommend “Buy” on the stock with price target of Rs 180(appreciation of almost 30%) for long term investment.

For full details, click on the attachment

Disclaimer & Disclosure: This document is prepared for our clients only, on the basis of publicly available information and other sources believed to be reliable. Whilst we are not soliciting any action based on this information, all care has been taken to ensure that the facts are accurate, fair and reasonable. This information is not intended as an offer or solicitation for the purchase or sell of any financial instrument and at any point should not be considered as an investment advice. Reader is requested to rely on his own decision and may take independent professional advice before investing. Hem Securities Limited, Hem Finlease Private Limited, Hem Multi Commodities Pvt. Limited, Directors and any of its employees shall not be responsible for the content. The person accessing this information specifically agrees to exempt Hem Securities Limited, Hem Finlease Private Limited, Hem Multi Commodities Pvt. Limited or any of its affiliates or employees from, any and all responsibility/liability arising from such misuse and further agrees to hold Hem Securities Limited, Hem Finlease Private Limited, Hem Multi Commodities Pvt. Limited or any of its affiliates or employees free and harmless from all losses, costs, damages, expenses that may be suffered by the person accessing this information due to any errors and delays. The companies and its affiliates, officers, directors, and employees, including persons involved in the preparation or issuance of this material may from time to time, have long or short positions in, and buy or sell the securities there of, company (ies) mentioned herein and the same have acted upon or used the information prior to, or immediately following the publication. Analyst Certification The views expressed in this research report accurately reflect the personal views of the analyst(s) about the subject securities or issues, and no part of the compensation of the research analyst(s) was, is, or will be directly or indirectly related to the specific recommendations and views expressed by research analyst(s) in this report.

jk_paper_Multibagger.pdf

Super Combo
  3200

Powerful mix of technical and commodity packs with timely expert.

Technical
2000

Designed especially for traders looking to tap the profit opportunities of volatile markets.

Commodities
2000

Stay on top of the Indian Commodities Market with commodity trading calls Intraday, and Positional (Short & Long-Term Calls).

Log on to

http://m.poweryourtrade.com

on your phone and stay updated on the go!

ISO 27001 - BSI Assurance Mark