JK Paper Share Price: Why Earnings Could Rise Sharply Over The Next Two Years

Paper stocks are emerging as a potential cyclical opportunity, with JK Paper among the key names to watch. Devarsh Vakil, Head of Prime Research, HDFC Securities, explains why cost optimisation and the commissioning of the BCTMP plant could support earnings growth over the next two years. He expects operating income and EBITDA to improve significantly as the paper cycle recovers. After a period of earnings pressure and valuation compression, the sector could be positioned for a recovery. The discussion also highlights why investors may want to track JK Paper and other paper companies as cyclical opportunities.