JK Paper - Under stabilization phase - Emkay

- Recently commissioned capacity to drive topline growth with revenue CAGR of 20% over FY13-15 while margins continue to remain under pressure

- Company to witness margin expansion on back of increase in realization however higher interest cost keep PAT growth under pressure

- Highly leveraged balance sheet (D/E 2.1x) and initial issues in commissioning remain our key concerns

- We maintain our sell recommendation on the stock and will review it once its operations get stabilised.

Source : Equity Bulls

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