Don’t miss action in this midcap Paper stock!

The stock of JK Paper has witnessed fresh buying interest as it soared nearly 4% on the bourses

The recent volatility has caused some profit booking across midcap and Smallcap stocks while the sentiment changes dynamically. Despite this, quality stocks continue to see growing attraction from the institutions as they outperform the broader market. One such stock is JK Paper (NSE Code- JKPAPER) which has soared nearly 4% during the initial hours of Monday’s trading session.

JK Paper is the leading paper producer for office papers, coated papers, and packaging boards. The company has a robust distribution network of over 300 trade partners and 4,000 dealers with 15 pan-India depots, reducing the turnaround time in servicing customers. With the market capitalisation of about Rs 7,200 crore, it is one of the leading company with strong market share.

On standalone basis, the company reported 74% YoY jump in revenue for Q2 FY22-23, while net profit grew by astonishing 113% YoY to Rs 251 crore. On the technical chart, the stock has registered a breakout from its consolidation pattern with massive volume. Also, it has surged above its prior swing high. The volume has risen for third consecutive and is above its 10-day and 30-day average volume. This indicates good trading activity in the stock. All the moving averages are in uptrend and indicate bullishness across all timeframes. The 14-period daily RSI (60.25) has entered the bullish territory and shows strong strength in the stock. The volumetric strength is strong and rising, as evident from a sharp rise in OBV. In a nutshell, the stock is fundamentally sound and technically strong, making it a good candidate to be included for long term portfolio.

On YTD basis, the stock has generated about 109% returns to its shareholders and also outperformed its peers. Currently, the shares of JK Paper trade at Rs 429 levels on NSE. Long term investors and momentum traders should include it in their watchlist to track its further progress!