Rs 94 to Rs 295: Investment of Rs 1 lakh in this stock two years ago would have turned to Rs 3.14 lakh today!

Rs 94 to Rs 295: Investment of Rs 1 lakh in this stock two years ago would have turned to Rs 3.14 lakh today!

by 5paisa Research Team Last Updated: Dec 10, 2022 - 05:40 pm 28.3k Views
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Compared to the returns delivered by the S&P BSE 500, the company has delivered over 2.5 times the index returns.

JK Paper Ltd has turned into a multibagger stock after delivering exceptional returns to its shareholders in the last two years. This paper mill company has seen its stock price rise by over 200% in the last two years, going from Rs 94.25 on 13 May 2020 to Rs 295.90 on 12 May 2022.

These returns are 2.5 times the returns delivered by the S&P BSE 500 index, of which the company is a part.

JK Paper Ltd is a leading paper manufacturing company in India. It offers a wide array of paper products and premium packaging boards and is a leading Indian player in office papers, coated papers, writing and printing papers and high-end packaging boards.

The company has three integrated Pulp and Paper Mills viz; Unit JKPM at Rayagada (Odisha) near the Eastern coast of India and Unit CPM at Songadh (Gujarat) on the Western coast & Unit SPM at Kagaznagar, Telangana. With its recently concluded 170,000 TPA capacity expansion in Packaging Board at Unit CPM, the company’s present installed capacity is 761,000 TPA.

Further, the company has a worldwide footprint with customers in more than 60 countries spanning the USA, Middle East, Europe, Southeast Asia, and Africa.

In the recent quarter Q3FY22, on a consolidated basis, the company’s net revenue went up by 37.42% YoY to Rs 1023.62 crore. Similarly, the PAT surged by 133.9% YoY to Rs 151.05 crore. On the valuation front, the company is currently trading at a TTM PE of 9.86x, as against the industry PE of 47.69x. In FY21, the company delivered an ROE & ROCE of 12.97% and 12.71% respectively.

At 12.31 pm, the shares of JK Paper Ltd were trading at Rs 306.8, an increase of 3.68% from the previous day’s closing price of Rs 295.90 on BSE. The stock has a 52-week high & low of Rs 387.40 and Rs 140.10 respectively on BSE.

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