JK Paper is a leading player in the domestic WPP industry and paper board segment, with an installed capacity of 7,61,000 tonnes per annum and the market leader in the corrugated box segment with a capacity of 3,50,000 tonnes. Sustained market position is backed by leadership in the copier segment, established brands offering premium products, diversified product portfolio and clientele, and robust distribution network.

Industry Leadership and Stable Growth in Paper Segment:

JK Paper is a market leader in India’s paper industry, holding 24% share in branded copier and 12% in coated paper. With no major new entrants, the industry offers stability, while demand is projected to grow at 6–7% CAGR to ₹1,00,000 crore by FY28. JK Paper’s backward integration ensures margin stability, cost efficiency, and quality control.

Packaging Segment Expansion Through Strategic Acquisitions

This portfolio is built through both organic and inorganic initiatives, including the commissioning of a greenfield corrugated plant in Ludhiana and the following acquisitions:

Backward Integration – BCTMP Mill: A 600–650 crore BCTMP mill, coming online in H2 FY26, will supply high-quality pulp for lightweight coated board and energy efficiency.

Cycle at the Bottom – Recovery Signs Emerging

Input Costs: Wood prices have started declining post a rise of ~80% in the last year. This will ease input cost and aid margin improvement.

Price Hike: The government has set an MIP of ₹67,220/ton on Virgin Multilayer Paper Board (till Mar’26), providing a floor to domestic prices. Meanwhile, channel checks indicate paperboard and WPP prices are rising on stronger demand and improved domestic pricing.

ADD Implementation: Multiple anti-dumping probes against imports from Indonesia, Chile, and China, which are expected to lead to Anti-Dumping Duty (ADD) implementation thus easing the pressures from imports.

Strong Balance Sheet and Cash Flow

JK Paper maintains a strong position with a net debt/EBITDA ratio of 0.25x, robust cash conversion, and a dividend yield of ~1.35%. Over the last decade, the company has transformed its balance sheet, cutting its debt-equity ratio sharply and improving return ratios.

Despite a correction of ~20% over the last year, with the industry now poised for recovery supported by falling input costs, regulatory protection, and price hikes, the stock’s current valuations appear highly attractive. We believe the risk-reward is favourable, with limited downside and meaningful upside as the industry enters its next upcycle.

This report is for the personal information of the authorized recipient and does not construe to be any investment advice to you. Care PMS is not soliciting any action based upon it. The recipients of this report should rely on their own investigations. We, at Care PMS, through our proprietary and client funds, have interest in the Company.