ValuePickr Forum

JK Paper - Best Bet in Paper Sector?

Wondering how there tax burden is constant and not reduced?

Could you please clarify what is BACL?

Bengal Assam Company. It’s the promoter of JK Paper and JK Tyre.

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Paper pri es are expected to go up shortly. Market information is
Duplex board by Rs 4 to 5 (NR Agarwal)
FBB/SBS by Rs 7 (JK, ITC)
Kraft Paper already increased by Rs 3 and expected to go up further by 3 to 4.

Price of NR already shot up in last one week.
This is being attributed to shortage in recycled paper.
Looks like 2020 will be repeat of 2018 when paper tightened and spiralled upwards. Year has begun on a good note for paper industry it seems.

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Where can i track paper prices… any forecast on jk paper results… pls help

Only way is to connect with dealers and distributers

If you will search on youtube there are multiple interviews by management time and again on CNBC, Zee business etc. They give some sort of guidance of prices etc. But yes item by item it will have to be through dealers and distributors. as in Coated paper/ uncoated paper, paperboard etc.

Thanks for sharing this info, Amit.

Any idea How much will be the impact on profits?

According the changes highlighted in the screenshot shared. Please provide your views.

While it will be difficult to conclude. But based on the import restriction of the 30% of the categories where JK paper operates, it should have decent positive impact for the company and overall as an industry it might improve or strengthen the prices (depending how on the ground implementation of this happens).

Just happened to speak some people on the ground level and got to know that this new restrictions are for “stock lots” basically “left over” paper stock which used to have multiple combinations of paper etc so which was being dumped into India. While do not have exact data, but the import of these items may not be very significant.

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From the same article:

A S Mehta, President & Director, JK Paper downplayed the impact of coronarirus, saying, “Prices have gone up marginally in the last couple of months because imports of coated paper from China have been hampered due to port congestion. As a result, the price of coated paper has increased but most other varieties are subdued.”

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https://www.outlookindia.com/newsscroll/govt-sets-up-development-council-for-pulp-paper-and-allied-industries/1759218

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While it is difficult to predict what could happen on the demand side in the near term,on the supply side while Indian rupee depreciated about 6% against USD in the last 3 months,Indonesian Rupiah depreciated about 16%.This makes imports even cheaper than they already are.It will reduce revenues and margins of Indian paper manufacturers unless the govt puts up any tariff or non-tariff barriers.

Tariff barrier already exists since January 2019 for uncoated paper. You can run through this thread the details are there above.

Hi,
As per BSE buyback record JK Paper has till date bought back about 14.6 lac shares combined on both exchanges.
Assuming average buyback price of around 90 rs. because share price has remained in range of 85 to 100 in last month , implies that company has spent around 13 Crs for shares already bought back . And offer is open until November.
So they seem to be on track, and your concerns may be unfounded. Hope this helps.

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Hi,
Thank you for pointing out the correct data.
I was under the impression that the company needs to file with the exchanges under the corporate announcement section every time they buy the share in the buy-back window.

I didn’t knew this page (https://www.bseindia.com/markets/publicIssues/CummShares.aspx?ID=532162&scripNm=JK%20PAPER&buyback_dt=11/06/2020&enddt=08May2020)
on the bse website which provides this data.

Thank you again, since the data was incorrect the whole premise of my hypothesis was invalidated. hence, retracting the post.