The paper industry hopes that the ban on single-use plastics will fuel demand for paper-manufacturing companies
Paper stocks edged higher in intraday trade on August 30 as the government notified a ban on single-use plastic beginning July 1, 2022.
The paper industry hopes that the ban will force people to shift to paper fuelling demand.
Individual stocks, including Star Paper, JK Paper, Emami Paper, Rushil Decor and West Coast Paper, jumped 5-7 percent each. Shreyans Industries, Ruchira Papers, Pudumjee Paper, Orient Paper, Astron Paper and Andhra Paper also edged higher.
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“Paper stocks are again surging today after the government issues notification that anti-dumping duty on an uncoated paper copier will be continued. It is a positive trigger for many paper companies but it was largely expected, so we can see some profit-booking after the initial reaction,” said Santosh Meena, Head of Research, Swastika Investmart.
The outlook for paper stocks is still bullish but investors should be cautious while choosing companies in this bull run. “JK paper will remain our top pick on the back of quality and a strong growth outlook,” he said.
Paper stocks have shown a decent rally because of reopening and surge in lumber prices globally, whereas most of the companies posted a good set of results, said Santosh Meena, Head of Research, Swastika Investmart.
Emami Paper Mills was quoting at Rs 176.05, up Rs 6.30, or 3.71 percent. It has touched an intraday high of Rs 177 and an intraday low of Rs 164. Stock price of Star Paper Mills was up Rs 151.60, up Rs 5.20, or 3.55 percent. It has touched an intraday high of Rs 153.55 and an intraday low of Rs 148.35.
Disclaimer: The above report is compiled from information available on public platforms. Moneycontrol advises users to check with certified experts before taking any investment decisions.