Espresso shot of the day – JK Paper Ltd up by 14.32 percent

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Espresso shot of the day – JK Paper Ltd up by 14.32 percent

July 28, 2021
Espresso shot of the day – JK Paper Ltd up by 14.32 percent

JK PAPER LTD 255.45 (+14.32%) BSE – INE789E01012 | 28TH JULY 2021


Established in 1962, JK Paper is the leading player in office papers, coated papers and packaging boards. 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 Aug 2018, JK Paper had acquired Sirpur Paper Mills Ltd., located in Telangana. With this acquisition, the company’s capacity is now 5,91,000 TPA. 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 over 60 countries covering USA, the Middle East, South East Asia, SAARC and African countries. JK Paper sells its products through an extensive distribution network of 229 trade partners, 18 depots and 4 regional marketing offices, covering nearly 4,000 dealers. They offer a wide product range, as seen below, and their 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 and 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

As part of a larger commitment and respect for the environment, the company has sustained its efforts for increasing the green cover within 200 km area from the plant sites at Jaykaypur, Rayagada (Odisha) and Fort Songadh (Gujarat). It has planted close to 1,60,000 hectares of land under this program. Most of these are planted with Eucalyptus, Casurina and Subabul clones as per requirement under the project of social farm forestry.

Recent Drivers

  • The paper industry has seen a recent surge of investment interest. Part of this is a natural consequence of investments in the packaging industry.
  • On July 6, 2021, JK Paper Ltd. was all set to commission its Rs 2,000-crore integrated expansion of paper packaging project in Gujarat during the current quarter. The plant will increase the capacity of packaging board by 1,70,000 tonnes per annum and 1.6 lakh pulp units and take its total production capacity to close to 7.8 lakh tonnes per annum.
  • On July 1, 2021, JK Paper Ltd. informed that the company has incorporated a wholly owned subsidiary company with the name JKPL Packaging Products Limited.
  • On May 21, 2021, the Board at its meeting recommended a dividend of Rs 4 per equity share of Rs 10 each.
  • JK Paper Ltd. reported quarterly net profit at Rs 128.78 crores in March 2021, up 40.96% from Rs 91.36 crores in March 2020.
  • JK Paper Ltd. reported net sales at Rs 897.37 crores in March 2021, up 22.89% from Rs 730.20 crores in March 2020.
(Sources: Moneycontrol, BSEIndia, Business Standard, The Hindu Business Line)


Technical Force*

  • S&P BSE 500 month till date gain up by 0.71%
  • Traded on all-time-high value of 268.10
  • Touched Upper Circuit Rs 268.10
  • Spurt in volume by more than 5.25 times compares to previous vol. 3 months avg qty – 2,26,762
  • Quantity traded: 7,68,752 | Deliverable quantity: 3,66,915 (47.73%)
  • Stock price has jumped more than 200% from one-year low level: 86.30 (Oct 29, 2020)
  • Daily RSI (14) is in Overbought territory today
  • 52-week-high: 268.10 | 52-week-low: 86.30

Key Pivot  (Yearly)

R4

R3

R2

R1

PP /FIB PP

S1

S2

S3

S4

Pivot Point

-

222.47

181.58

143.97

103.08

65.47

24.58

-

-

Fibonacci Pivot

181.58

151.60

133.07

121.14

103.08

85.03

73.10

54.57

24.58


Today’s Close

255.45

SMA

BSE

10 DAY

223.49

20 DAY

223.07

50 DAY

190.59

200 DAY

139.52


Some Key Ratios (Source: BSE)

Market Cap: 4,327.38 crores

PE: –

OPM%: 27.25

ROE%: 12.04

Promoters holding%: 51.44

Prev. Close: 223.45

*Chart And Technical Force data taken from the Binge desktop app.

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Chandresh Khona
by Chandresh Khona

Product Offerings Head

A teacher, writer, travel buff and now Espresso's Product Offerings Head. Ten years here has allowed me to lead the digital team at Sharekhan. My true passion lies in stock market charts.