Recommendation from Paper and Textiles Sector

The scrips in this column have been recommended with a 15-day investment horizon in mind and carry high risk. Therefore, investors are advised to take into account their risk appetite before investing, as fundamentals may or may not back the recommendations. [EasyDNNnews:PaidContentStart]

JK Paper Ltd.
CMP - ₹400.50
BSE CODE 532162
Volume 30,066
Face Value ₹10
Target ₹433 - ₹441
Stoploss ₹373 (CLS)

J K Paper Ltd. is one of India’s leading paper and packaging solutions companies, with operations spanning paper, boards and packaging conversion. In Q1FY27, consolidated turnover increased 13 per cent YoY to ₹1,998.67 crore, while EBITDA rose 18 per cent to ₹320.90 crore. Profit after Tax grew 63 per cent to ₹136.27 crore, supported by higher volumes, an improved product mix and stronger performance from the packaging business. During the quarter, the company acquired an additional 15.40 per cent stake in Borkar Packaging Private Limited, taking its total holding to 87.36 per cent. It also commenced production at its Hardwood Bleach Chemical ThermoMechanical Pulp plant at Unit CPM, Gujarat, strengthening backward integration. Promoter group holding had earlier increased by 3.31 percentage points to 52.94 per cent in March 2026 and remained unchanged in June 2026. Considering improving profitability, packaging expansion, higher promoter holding and raw material integration initiatives, we recommend BUY.

Spice Islands Industries Ltd.
CMP - ₹102.40
BSE CODE 526827
Volume 95,712
Face Value ₹2
Target ₹110.50 - ₹112.50
Stoploss ₹95.20 (CLS)

S pice Islands Industries Ltd. operates across food and beverages, hospitality and electric vehicle rental businesses, with food and beverages forming the largest revenue contributor. In Q1FY27, revenue from operations surged to ₹17.83 crore from ₹1.93 crore in Q1FY26, while total income stood at ₹18.72 crore. Profit after tax increased more than fourfold to ₹1.40 crore from ₹0.33 crore a year earlier, although it declined sequentially from ₹3.09 crore in Q4FY26. The food and beverages segment contributed ₹14.86 crore of revenue but reported a segment loss, while hospitality and EV rental remained profitable. The company has also entered into a 60:40 JV agreement with The Peace Mission Private Limited to develop and commercialise functional wellness beverages under the PEACE ROGERS brand, with Spice Islands holding 60 per cent. Considering strong YoY growth, diversification and the emerging wellness beverage opportunity, while factoring in sequential profit moderation, we recommend BUY.

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