JK Paper Limited (JKPAPER) AI Stock Analysis

• Market Cap: ₹57.02B
• Dividend Yield: 1.36%
• Average Volume (3M): 45.34K
• Price to Earnings (P/E): 22.0
• Beta (1Y): 1.18
• Revenue Growth: -1.13%
• EPS Growth: -61.80%
• Country: IN
• Employees: 2,879
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Paper, Lumber & Forest Products
• EPS (TTM): 1.60
• Shares Outstanding: 169,402,340
• 10 Day Avg. Volume: 30,243
• 30 Day Avg. Volume: 45,337
• PEG Ratio: -0.22
• Price to Book (P/B): 1.06
• Price to Sales (P/S): 0.85
• P/FCF Ratio: 15.94
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 60 Neutral
• Price Target: ₹344.00 ▼(-3.96% Downside)

JK Paper Limited's overall stock score reflects strong financial performance but is tempered by technical indicators suggesting bearish momentum and moderate valuation. The company's financial health is solid, but attention to net margins and debt management is crucial. The absence of earnings call and corporate events data limits further insights.

Positive Factors

Operating cash generation

Consistent strong operating cash flow indicates the core paper business converts sales into cash reliably. Over a 2-6 month horizon this supports working capital, debt servicing and funding for necessary maintenance or targeted growth capex without relying on external financing, strengthening financial resilience.

Improved leverage metrics

An improving equity ratio and reduced debt-to-equity reflect sustained deleveraging and better capital structure management. Structurally, this increases financial flexibility and lowers refinancing risk over several months, enabling the company to better withstand cyclical demand swings in paper markets.

Stable gross and EBIT margins

Healthy gross and EBIT margins point to durable operational efficiency and potential pricing power in core paper grades. These margins support long-term cash generation and provide a buffer against input cost volatility, underpinning sustainable profitability over the medium term.

Negative Factors

Declining net profit margin

A falling net margin signals pressure below the EBIT line—from higher interest, taxes, or other non-operating items—which can erode returns even if core margins hold. If persistent, this reduces retained earnings and limits ability to invest, pay dividends or accelerate deleveraging over coming months.

Significant absolute indebtedness

Despite improved ratios, notable absolute debt leaves the company exposed to interest-rate moves and cyclical downturns in paper demand. Over a 2-6 month horizon higher borrowing costs or weaker cash inflows could strain liquidity and constrain strategic flexibility like capacity investments or margin support.

Volatile free cash flow from capex

Fluctuating free cash flow driven by lumpy capex reduces predictability of funds available for debt reduction, dividends or opportunistic investments. If capex remains elevated or poorly timed relative to cash generation, it can push leverage higher and limit near-term strategic options.

JK Paper Limited Business Overview & Revenue Model

Company Description

JK Paper Limited produces and sells papers and paper boards in India. It offers office and copier papers for use in color printing, black and white printing, photo copying, pamphlet printing, letter heads, and legal and accounting documentation purposes; uncoated writing and printing paper to produce various stationary products, including notebooks, books, envelopes, drawing and sketching sheet, etc.; coated printing papers; and packaging solutions for the pharma, food and beverages, and FMCG. The company sells its products under the JK Copier, JK Easy Copier, JK Copier Plus, JK Excel Bond, JK SS Maplitho (SHB), JK Cote, JK Ultima, and JK Endure brands. It also exports its products in the United States, the United Kingdom, Bangladesh, Singapore, Malaysia, Africa, the Middle East, and internationally. The company was formerly known as Central Pulp Mills Ltd. and changed its name to JK Paper Limited in May 2002. JK Paper Limited was founded in 1938 and is headquartered in New Delhi, India.

How the Company Makes Money

JK Paper Limited generates revenue primarily through the sale of its paper products, which include printing and writing paper, packaging boards, and specialty papers. The company capitalizes on various revenue streams, including domestic sales to a wide range of customers in sectors like education, corporate, and packaging, as well as exports to international markets. Significant partnerships with distributors and retailers enhance their market reach. Additionally, JKPAPER focuses on innovation and product development, which allows them to cater to evolving customer needs and capture new market segments. The company's commitment to sustainability and eco-friendly practices also positions it favorably in a market increasingly driven by environmental considerations, further contributing to its revenue growth.

JK Paper Limited Financial Statement Overview

Summary

JK Paper Limited shows strong revenue growth and profitability with a solid balance sheet. However, concerns include declining net profit margins and significant debt levels, which could pose risks if not managed effectively.

Income Statement

JK Paper Limited has demonstrated strong revenue growth over the past few years, with a notable increase from 2021 to 2025. The gross profit margin and EBIT margin have remained healthy, indicating strong profitability. However, the net profit margin has seen some decline in the most recent year, which could be a concern if not addressed.

Balance Sheet

The company's balance sheet shows a solid equity base, with the equity ratio improving over the years. The debt-to-equity ratio has decreased, reflecting better leverage management. However, the company still carries a significant amount of debt, which could pose a risk if market conditions change.

Cash Flow

JK Paper's cash flow statement shows a strong operating cash flow, which is a positive sign of its ability to generate cash from its core operations. However, the free cash flow has fluctuated, and recent capital expenditures have impacted the free cash flow significantly. The operating cash flow to net income ratio indicates efficient cash conversion, but the company needs to manage its capital expenditures better.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	66.79B	67.18B	66.47B	64.37B	39.11B	27.27B
Gross Profit	20.84B	21.23B	15.55B	34.91B	9.83B	13.46B
EBITDA	9.71B	9.28B	18.21B	21.13B	11.34B	6.71B
Net Income	3.51B	4.10B	11.22B	11.96B	5.43B	2.40B
Balance Sheet
Total Assets	0.00	95.48B	93.28B	89.20B	76.25B	65.55B
Cash, Cash Equivalents and Short-Term Investments	4.64B	4.64B	10.42B	8.64B	6.39B	5.44B
Total Debt	0.00	18.85B	22.04B	28.03B	31.37B	27.90B
Total Liabilities	-56.55B	38.92B	41.16B	47.55B	46.22B	40.34B
Stockholders Equity	56.55B	54.07B	50.70B	40.34B	29.96B	25.16B
Cash Flow
Free Cash Flow	0.00	3.60B	11.36B	15.38B	-547.20M	-6.98B
Operating Cash Flow	0.00	6.13B	13.76B	17.62B	7.74B	4.75B
Investing Cash Flow	0.00	-21.10M	-4.11B	-9.67B	-8.74B	-12.82B
Financing Cash Flow	0.00	-6.56B	-9.38B	-7.87B	1.03B	7.84B

JK Paper Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 358.20
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:JKPAPER, the sentiment is Negative. The current price of 358.2 is above the 20-day moving average (MA) of 332.53, above the 50-day MA of 350.19, and below the 200-day MA of 365.37, indicating a bearish trend. The MACD of -7.68 indicates Negative momentum. The RSI at 41.44 is Neutral, neither overbought nor oversold. The STOCH value of 69.47 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:JKPAPER.

JK Paper Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
JKPAPER	60 Neutral	₹57.02B	21.97	―	1.36%	-1.13%	-61.80%
WSTCSTPAPR	60 Neutral	₹28.83B	16.01	―	1.18%	-1.59%	-60.74%
SESHAPAPER	58 Neutral	₹15.08B	17.23	―	1.03%	-9.17%	-57.37%
TNPL	58 Neutral	₹9.73B	32.90	―	2.08%	4.65%	-127.24%
ANDHRAPAP	54 Neutral	₹13.35B	71.23	―	1.48%	-2.55%	-89.20%