Shares of this small-cap stock engaged in the “Paper & Forest Products” sector are trading in the green today after favorable movements in the net profits of the company during the quarter ended June 2023.
With a market capitalization of Rs 5,600 crores, the stocks of JK Paper (NS:JKPA) Limited are currently trading at Rs 327. The scrip witnessed an intra-day high of Rs 336 exhibiting a gain of around 7 percent as compared to the previous closing levels of Rs 313.30 apiece.
The surge in the company’s share prices was observed after it published the financial results for Q1FY23-24 via a regulatory filing with the BSE dated 24th July 2023. Having a glance at the income statement, the company has shown opposing movements as far as the operating revenues and net profits are concerned.
On a sequential basis, the operating revenues, on one hand, have gone down from Rs 1,720 crores during March 2023 quarter to Rs 1,584 crores in June 2023 quarter. Net profits, on the other hand, have moved up from Rs 284 crores to Rs 313 crores representing an increase of more than 10 percent.
Comparing Q1FY22-23 with Q1FY23-24, the operating revenues increased from Rs 1,430 crores to Rs 1,584 crores, and, the net profits took a shift from Rs 264 crores to Rs 313 crores indicating an increase of approximately 20 percent.
The basic profitability metrics of the company reported healthy numbers as well with the return on equity (RoE) moving from 18.29 percent during FY21-22 to 29.64 percent in FY22-23, and, the return on capital employed (RoCE) taking a shift from 14.67 percent to 26.09 percent.
The latest shareholding data portray the Promoters holding a 49.63 percent stake, and the Foreign Institutional Investors (FIIs) holding a 10.46 percent stake in the company.
JK Paper Limited is a paper manufacturing company with products including paper boards and other related offerings. The company offers multi-purpose paper products with applications in desktops, fax machines, laser printers, etc. Some of the company’s brands include JK Copier, JK Cedar, and many others.
Written by Amit Madnani
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