Paper Stocks Rise on Government Decision

  • Investing.com
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Paper Stocks Rise on Government Decision
Credit: © Reuters.

By Aditya Raghunath

Investing.com -- It was a good day for paper stocks in the markets today. Shares of companies like JK Paper Ltd (NS: JKPA ), Emami (NS: EMAM ) Paper Mills Ltd (BO: EMAP ) and West Coast Paper Mills Ltd (NS: WSTC ) gained between 2-3% today.

The reason behind the uptick in share prices was the government’s decision to continue with anti-dumping duty on uncoated paper copiers. This caused branded and coated paper stocks to rise.

JK Paper, the country’s largest branded paper player which is also a leading player in coated papers and high-end packaging boards rose around 3% today. It reported its numbers for Q1 FY22. Net sales came in at Rs 661.52 crore, up 42.7% from Q1 FY21 where it reported Rs 463.59 crore. Net profit was Rs 97.71 crore, up 290.06% from Rs. 25.05 crore in the corresponding quarter last fiscal year.

However, markets analysts have said that the government’s decision was expected and investors should not read too much into it. They cautioned that while the rally in paper stocks will likely continue, it will be limited to select stocks. Investors should be careful about the stocks they choose.

Apart from JK Paper, other stocks that analysts like are West Coast Paper moved up 1.9% while Emami Paper Mills closed 2.5% higher.

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  • Ankur Tiwari @Ankur Tiwari
    Good you have post too earlier, so that we can buy on high.Don't try to fool people always.
    Like 0
  • Abubakar Mirasa @Abubakar Mirasa
    digitilization era will definately have a huge impact on papers and slow down the paper industry
    Like 0
    • Srinivas Yadav @Srinivas Yadav
      But it will take more time.. Because govt planning to ban plastics.. so papers are must for packaging and parcels in retail stores and hotels.. just saying
      Like 0
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  • Akshay Sarna @Akshay Sarna
    good for mkt leaders
    Like 0

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