Paper stock in focus after its Gujarat unit’s production affected by 20% due to worker strike

Published 18-03-2025, 12:22 pm
© Reuters.  Paper stock in focus after its Gujarat unit’s production affected by 20% due to worker strike

Shares of this small-cap paper company which is in the business of Office papers, Coated papers, and Packaging boards, were in focus followed by employee strikes to hit its production by 20 percent in CPM unit.

Price Variation

In Tuesday’s session, JK Paper Ltd ’s (NSE:JKPA) share price jumped 1.50 percent to a day’s high of Rs. 301 per share. The stock has reiterated from a day’s high and was trading at Rs. 298.85 which is 2.42 percent higher than the previous closing price of Rs. 291.80 per share.

It has delivered a negative return of around 12 percent in the past year compared to the Nifty Index, which JK Paper has underperformed.

ProPicks AI is now LIVE in India. ProPicks Strategies utilizes a blend of artificial intelligence (AI) and expert human analysis to spotlight stocks with the potential to outperform market benchmarks. Our Strategies such as Bharat Market Outperformers, Bharat Infra Titans, Bharat Mid-Cap Movers, Bharat Bargains, and Bharat Small Cap Gems have all beaten their respective benchmarks by handsome margins. To view February stock picks by AI, and make use of all other InvestingPro’s features such as Stock Screener, Fair Value, Financial Health, etc., avail Pro+ plan at a 45% discount here.

What happened

JK Paper stock was in focus after an exchange filing revealed that the strike had been called by the trade unions of a section of workers at the CPM unit at Fort Songadh, District Tapi in Gujarat on March 17th, 2025. Due to this event, the manufacturing activities are affected by around 20 percent more than the normal course.

The reason for the strike is to settle a higher revision in wages and the company’s management is in discussions with concerned Trade Unions to resolve the issue as soon as possible.

Financial Performance

Looking at the company’s financials, JK Paper reported a revenue of Rs. 1,632 crore for Q3FY25, marking a 4.3 percent decline from Rs. 1,706 crore in the same quarter last year. However, Profit After Tax (PAT) declined by 72.45 percent to Rs. 65 crore, up from Rs. 236 crore in the previous year’s quarter.

Revenue Segment & Market Share

The company recognizes its revenue from operations from Paper and Packaging Products for the December 2024 quarter. The company has a market share of 28 percent in Copier Paper as per the company’s estimates.

Company Profile

JK Paper Ltd was established in 1938 and is a leading Indian paper manufacturer specializing in office papers, coated papers, writing and printing papers, and high-end packaging boards. With a production capacity of 7,61,000 TPA across three mills, it highlights sustainability through social farm forestry. Its products serve over 60 countries globally.

Written by – Santhosh S

Disclaimer

The views and investment tips expressed by investment experts/broking houses/rating agencies on tradebrains.in are their own, and not that of the website or its management. Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution while investing or trading in stocks. Dailyraven Technologies or the author are not liable for any losses caused as a result of the decision based on this article. Please consult your investment advisor before investing.

The post Paper stock in focus after its Gujarat unit’s production affected by 20% due to worker strike appeared first on Trade Brains.

Read More

To subscribe to India’s top stocks in 2025 through ProPicks AI, click here:

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2025 - Fusion Media Limited. All Rights Reserved.