The Company is a manufacturer of paper and board. JK Paper produces copier, coated paper and packaging
board. The Company has two units, JKPM Jaykaypur, Orissa, and Central
Pulp Mills situated at Fort Songadh, Gujarat. The Company’s product in
the packaging boards’ portfolio includes JK Endura, JK Pristine Cote
and JK IV Board.

A bull Case

Indian consumer is buying more products and consuming more , per capita income doubled in last 5 year. The packaging industry and printing are main consumer of paper. While printing is going down worldwide as more and more electronic medium is used like email , scanning, efax, india is still not looking back. There is high demand from business for more paper.

Same is true for packaging board material.

JK paper is looking expanding it's capacity . Read this

JK is giving handsome dividend for waiting . I like that .

Risk Factor

1. rising cost : energy and  raw material can go high and erode some profit margin. I am not too worried about that , This is true for almost all commodity sector.

2. Cheap import : This is bigger risk , chinese producers can dump cheap paper and eat JK's food.

Risk Reward ratio: There is low risk and high reward in this case and I would recommend accumulating this stock .

Another stock I like in this sector is Ballarpur industries.