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Business News/ Markets / Stock Markets/  Multibagger paper stock rallies to hit all-time high today, surges 115% in 2022
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Multibagger paper stock rallies to hit all-time high today, surges 115% in 2022

The paper stock has given multibagger return of more than 126% in a year's period

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Shares of JK Paper Ltd surged to hit a record high of 452 apiece on the BSE in Wednesday's early trading session in an otherwise weak market. The stock has been an outperformer this year as it has given multibagger return of over 115% in 2022 (YTD). 

JK Paper is among the top makers of copier paper, coated paper and packaging boards in the country. The paper stock has given multibagger return of more than 126% in a year's period.

The paper and packaging board company last month said it will acquire Horizon Packs Private Ltd and Securipax Packaging Private Ltd in phases for about 578 crore. HPPL and SPPL are India's leading corrugated packaging manufacturers with seven plants across the country.

"JK Paper has entered into a share purchase and shareholders' agreements for the acquisition of 85 per cent shares of Horizon Packs Private Ltd (HPPL) and Securipax Packaging Private Ltd (SPPL), and the balance 15 per cent within 3 years as per the respective SPSHAs," the company said in an exchange filing.

The company said it will acquire 26.92 crore equity shares in HPPL for 19.33 per share and 4.63 lakh equity shares for 1,256.95 apiece in SPPL, representing an 85% stake in each company.

"It is a privilege to join hands with India's largest player in the Corrugated Packaging segment. This together with JK Paper's upcoming corrugated facility in Ludhiana will establish it as the largest player in the corrugated packaging industry," JK Paper Vice Chairman and Managing Director Harsh Pati Singhania said.

Meanwhile, for the quarter ended September 2022, the company reported more than two-fold increase in consolidated net profit at 327 crore, helped by higher sales volume and enhanced sales realisation. Its revenue from operations was up 72% to 1,722.6 crore as compared to 999.5 crore in the corresponding quarter of the previous fiscal.

Vice Chairman & Managing Director H P Singhania said: "The company was able to deliver an improved performance on a quarter-to-quarter and YoY basis due to growth in volume driven by the ramp-up of new packaging board capacity coupled with overall better realisation despite the adverse impact of higher input costs."

 

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Published: 21 Dec 2022, 01:13 PM IST
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