JK Paper Ltd Share Price – NSE /  BSE

Paper, Small Cap

The Board of Directors of JK Paper (JKPL) in it's meeting held today approved a Composite Scheme of Arrangement (Scheme) of, inter alia, JK Paper Ltd and Horizon Packs, Securipax Packaging, JKPL Utility Packaging Solutions which are wholly owned subsidiaries (WOS) of JKPL and Enviro Tech Ventures.

As a part of the Scheme, the three WOS of JKPL engaged in manufacturing of packaging products and solutions will be merged with JKPL to create a consolidated paper and packaging company. Further, pursuant to the Scheme, The Sirpur Paper Mills will become a direct subsidiary of JKPL.

Separately, the Board also approved the acquisition of majority stake in Radhesham Wellpack (RWPL) in today's meeting. JKPL entered into a Share Purchase and Shareholders' Agreement (SPSHA) for the acquisition of 60% shares of RWPL upfront and the balance 40% to be acquired within a period of two years as per the SPSHA.

RWPL is engaged in the business of manufacture of corrugated boxes, corrugated sheets, and other corrugated packaging related work/ products. Corrugated Packaging is a rapidly growing segment in the Indian Paper & Packaging industry driven by growth in end-use industries.

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The key equity indices continued to trade with moderate losses in early afternoon trade. The Nifty traded below the 23,900 level. Consumer Durables shares extended losses for the two consecutive trading sessions.

At 12:30 IST, the barometer index, the S&P BSE, Sensex declined 374.05 points or 0.48% to 78,404.97. The Nifty 50 index fell 111.10 points or 0.46% to 23,884.25.

In the broader market, the S&P BSE Mid-Cap index fell 0.62% and the S&P BSE Small-Cap index shed 0.84%.

The market breadth was positive. On the BSE, 1,986 shares rose and 1,817 shares fell. A total of 134 shares were unchanged.

Derivatives:

The NSE's India VIX, a gauge of the market's expectation of volatility over the near term, jumped 7.21% to 17.05. The Nifty 31 October 2024 futures were trading at 23,997.05, at a premium of 112.8 points as compared with the spot at 23,884.25.

The Nifty option chain for the 28 November 2024 expiry showed maximum Call OI of 27.8 lakh contracts at the 25,000 strike price. Maximum Put OI of 40 lakh contracts were seen at 24,000 strike price.

Buzzing Index:

The Nifty Consumer Durables index fell 0.99% to 38,748.65. The index declined 2.03% in two trading sessions.

Kalyan Jewellers India (down 3.25%), V-Guard Industries (down 2.13%), Havells India (down 1.76%), Crompton Greaves Consumer Electricals (down 1.65%), Dixon Technologies (India) (down 1.42%), Voltas (down 0.78%), Titan Company (down 0.55%), Cera Sanitaryware (down 0.4%), Bata India (down 0.12%) declined.

On the other hand, Whirlpool of India (up 2.28%), Rajesh Exports (up 1.36%) and Amber Enterprises India (up 1.29%) edged higher.

Stocks in Spotlight :

JK Paper fell 0.54% after its consolidated net profit tumbled 57.84% to Rs 128.85 crore in Q2 FY25 as against Rs 305.68 crore posted in same quarter last year. Revenue from operations rose 1.99% year on year (YoY) to Rs 1,682.93 crore in the quarter ended 30 September 2024.

Indian Railway Catering and Tourism Corporation’s (IRCTC) rose 0.46%. The company’s consolidated net profit rose 4.47% to Rs 307.87 crore in Q2 FY25 as compared with Rs 294.68 crore posted in Q2 FY24. Revenue from operations grew by 7.21% to Rs 1,064 crore in Q2 FY25 as compared with Rs 992.40 crore reported in Q2 FY24.

Meanwhile, the company’s board declared an interim dividend of Rs 4 per share for financial year 2024-25 and has set the record date on 17 November 2024.

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Revenue from operations rose 1.99% year on year (YoY) to Rs 1,682.93 crore in the quarter ended 30 September 2024.

Profit before tax decreased by 57.35% to Rs 145.25 crore in Q2 FY25 over Q2 FY24.

On half year basis, the company’s net profit slumped 52.01% to Rs 296.64 crore on 5.04% rise in revenue from operations to Rs 3,396.58 crore in H1 FY25 over H1 FY24.

Harsh Pati Singhania, chairman & MD, said, “The results have been primarily affected due to continuing high wood cost. Sizeable increase in imports at much lower prices has significantly impacted volume and realisation in the printing & writing and packaging board segment.”

JK Paper is the market leader in branded copier paper in India and amongst the top producers of coated paper and packaging boards in the country. The company is consistently following a policy of focusing on value added products like copier, bond, security, coated papers, virgin fibre packaging boards, high-end maplitho, food grade papers and boards.

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Net profit of JK Paper declined 57.50% to Rs 128.51 crore in the quarter ended September 2024 as against Rs 302.35 crore during the previous quarter ended September 2023. Sales rose 1.99% to Rs 1682.93 crore in the quarter ended September 2024 as against Rs 1650.04 crore during the previous quarter ended September 2023.

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