JKP is a solid old school stock with smooth balance sheet and backed by JK brand. KJP is also showing good ambition for a mature company. I like their recent foray into corrugated packaging. They are already the largest organized corrugator.
Current PE is actually below long term hist average of about 10. All integrated paper companies are just coming off a spectacular 2023. Wood pulp prices are at rock bottom, Indian wood prices are elevated, hurting realizations. Due to china and asean slowdown, paper of coated kind is getting dumped in India. Classic double whammy of a text- book bulk commodity producer! Near term is all clouds and rain.
IMHO my own long term thesis is that JKP will maintain 10 to 15% sales growth with about 15 to 20% margin. Near term high base may result in flat to degrow th near term.
DISCLOSURE – lay retail investor, not very bright… holding a small position around 390. Will accumulate slowly
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