JK Paper Q1 Results Review - Weathering The Challenges: IDBI Capital

NDTV Profit’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer NDTV Profit’s subscribers an opportunity to expand their understanding of companies, sectors and the economy..IDBI Capital Report.JK Paper Ltd.’s Q1 FY25 was disappointing, particularly on the margins front. Healthy sales volume growth of 16% aided net sales improvement, however, subdued net sales realisation coupled with increase in raw material prices dented margins. We believe the company’s initiatives on price hike in board and eventual price increase in writing and printing should drive NSR improvement in upcoming quarters. Raw material prices have increased by 23% YoY along with 40% YoY increase in other expenses (due to acquisition) in Q1 FY25. We take JK Paper’s Q1 FY25 result aberration and gradual improvement should be expected on both NSR and margins front. We have broadly maintained our earnings estimates for FY25E/FY26E. Post sharp increase in stock prices, one year forward enterprise value/Ebitda average for five year stands at seven times. As potential upside is capped from current level, we recommend Hold with a revised target price of Rs 582, assigning 5.5 times EV/Ebitda (20% discount to five year average) on FY26E..Click on the attachment to read the full report:.KEI Industries Q1 Results Review - Strong, Inline; Robust Outlook Intact: Systematix.DISCLAIMERThis report is authored by an external party. NDTV Profit does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of NDTV Profit..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

JK Paper Q1 Results Review - Weathering The Challenges: IDBI Capital

The brokerage would be watchful of margins revival in upcoming quarters, Hold with a target price of Rs 582.

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JK Paper Q1 Results Review - Weathering The Challenges: IDBI Capital

The brokerage would be watchful of margins revival in upcoming quarters, Hold with a target price of Rs 582.

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