The year 2023 is not good for JK Paper. The stock is down more than 10% so far in 2023. But over the long run, this stock shines like a diamond. Over the past three years, the stock has risen 388%.

From a COVID low of Rs 62, the stock is now trading 494% higher at around Rs 368.

Meanwhile, the stock has surged more than 1,089% over the past 10 years from around Rs 31 in March 2013 to current levels. So, in the big picture, JK Paper’s recent 10% drop does not seem like much.

Over the past year, the stock has risen 22%. Meanwhile, it is down more than 5% in March 2023 (so far) and February. Shares were flat in January.

Despite a strong performance in the December quarter of the fiscal year 2023 (Q3FY23), the stock has seen a pullback recently.

In Q3FY23, the company more than doubled its profit to Rs 329 crore due to higher demand for paper products in schools and offices post-pandemic. The company reported a profit of Rs 150 crore in the same period last year. Meanwhile, its total operating income rose by nearly 61% to Rs 1,643 crore, most of which came from its paper and board business. Revenue from its paper and paperboard business jumped 59.6% to Rs 1,633 crore in the quarter.

“Higher capacity utilisation and volume growth across all segments helped the company improve its market share and achieve better performance,” JK Paper vice chairman and managing director Harsh Pati Singhania said in a bourse filing.

JK Paper has also been expanding its business through acquisitions. In November last year, the company announced the acquisition of an 85% stake each in Horizon Packs and Securipax Packaging for Rs 578 crore. The company also announced that it would acquire the remaining 15% of the two companies over the next three years.

JK Paper’s strong market position in the writing and printing paper industry, solid position in copiers, superior market coverage and dealer network, strong operating efficiencies and a solid financial risk profile are some of the key positives for the stock.