Mar'25 View on JK Paper Ltd

JK Paper is the leading player in Office papers, Coated papers and Packaging boards. It is one of the most respected paper companies today. The stock after making a high of 638 in July'24 has made a low of 275 recently and looks to regain its 370 level from its current level of 310 in spite of the following negative news as the fair value is above 370. * JKP is the market leader in Branded Copier Paper in India and amongst the top producers of Coated Paper and Packaging Products in the Country. • During Q3FY25, JK Paper's (JKP) performance was below our estimates on the top-line and bottom line front. • The results have been adversely impacted due to significant drop in market prices coupled with surge in wood cost. • During the quarter, the company reported revenue of Rs1,632cr (de-grew 4.4% growth YoY). • EBITDA during the quarter de-grew 55.0% YoY to Rs168cr (down ~36.5% QoQ). • We recommend REDUCE with Fair Value of Rs378.