Shares of JK Paper Ltd rose 2.13% to ₹362 on July 29 on the NSE after the company reported a sequential rise in profit and announced a strategic acquisition.
The stock opened strong and climbed from its previous close of ₹354.45 to an intraday high of ₹364.50 in early trade, reflecting investor optimism around its Q1FY26 performance and acquisition of Borkar Packaging.
In its quarterly results declared on July 28, JK Paper posted a net profit of ₹81.23 crore, registering a 7% sequential growth, even as margins remained under pressure year-on-year due to cheap imports and rising wood costs.
The company also approved the acquisition of a majority stake in Borkar Packaging Pvt Ltd, a leading player in folding cartons and labels. Borkar posted FY24 revenue of ₹393.2 crore and has seven manufacturing facilities across India.
Management said the acquisition aligns with JK Paper’s strategy to expand into value-added packaging solutions and strengthen its position in the FMCG and pharmaceuticals sectors.
Analysts noted that while the paper segment faces margin constraints, the diversification into packaging and the company’s stable operational metrics are supporting investor sentiment.
