Paper stock for 35% upside

We have been tracking the paper stocks in recent past and there has been some eye catching momentum in this sector. Upon running our mean variance algorithm on Nifty 500 index we found this stock to be at a score of 9. Hence it qualifies for a short term to medium term trade for us.

Stock Name : JK Paper | Current Price : 346 | Target 1 : 410 | Target 2 : 440 | Time frame – 30 to 90 days.

Analysis Summary:

  1. Cheapest stock in paper industry on comparable P/E basis
  2. Crossed 50 DMA after 1 year with good volumes
  3. TTM Operating profit already above pre covid levels
  4. High operating margins with Good above 10% ROCE / ROE
  5. Stock has doubled its profit in TTM compared to last year.
  6. Since last 18 months stock has shown superb up moves after extensive consolidation in a true range.
  7. New modern age products added as per the demand in education sector.

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