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.
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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
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