Top Paper Companies in India: Should You Invest in Them?
Top Paper Companies in India: An Overview
The paper industry significantly influences the development of our nation's economy. Yes, the same paper that everyone uses every day for writing, reading the newspaper, printing office documents, etc., is a crucial pillar of India's economic development. India's top paper stocks have had a fantastic year in 2022. The most extensive paper stock in the country is JK Paper Ltd., which is on the paper share list. There was an increase in revenue at JK Paper from FY17 (Rs 25,283 m) to FY21 (Rs 28,632 m). The income of JK Paper has increased at a CAGR of 3.2% during the previous 5 years. Coast Paper Mills Ltd. follows after that. This is India's second-largest paper stock. The company reported a Consolidated Overall Income of Rs 1,125.41 Crore for the quarter ending 30-06-2022, up from the previous quarter's Total Income of Rs 1,089.15 Crore (a 3.33% increase) and up from the previous year's Total Income of Rs 551.70 Crore (a 103.99% increase).
Are you aware that approximately Rs 5,000+ crore of the government's revenue comes from India's paper and pulp industry? But that's not all. 5+ lakh people are employed directly in the paper industry, and 1.5+ million people are employed indirectly. The paper market in India is likewise expanding at the highest rate worldwide. We produce nearly 5%+ of all the paper produced worldwide.
Best Paper Company Stocks to Buy in India
In 1987, Century Textiles and Industries Ltd. transformed from a single-unit textile company into a commercial powerhouse with a broad range of interests. The company sets trends in the cotton textile industry and has a unique position in the pulp and paper company stocks.
The company's Paper & Pulp vertical accounts for 69% of its revenues, followed by the textile industry (25%) and the real estate sector (4%). In FY22, Multi-layer packaging board stood for 44% of the vertical revenues for paper and pulp, which were then followed by tissues (12%), printing and writing composition (40%), and rayon grade pulp (4%). The closing price for each share of Century Textiles and Industries Ltd. was 821.90 INR as on 14th October 2022.
JK Paper, which was founded in 1962, is the market leader in packaging boards, coated papers, and office papers. Office paper, typing and printing paper, packing board, and specialty paper are just a few of the various products and paper products share offered by the company. It sells these items through multiple names, including JK Easy Copier, JK Cedar, JK Sparke, JK Copier, JK Max, JK Excel Bond, etc. The company has a minor advantage in terms of pricing power thanks to its 24% leading market share in India's branded copier market and paper stocks in nse. The closing price for each share of JK Paper Ltd. was 391.90 INR on 14th October 2022.
One of India's oldest and most prominent paper manufacturers for writing, printing, and packaging is West Coast Paper Mills Ltd. The Paper and Paperboard Division accounts for 94.33% of sales, while the Cables Division brings in 5.67%. Its product categories are writing, printing, specialty, industrial, packing board, and corporate stationery.
In 2019, the business purchased International Paper Investments' 55% stake in International Paper APPM Ltd. As a result, it became one of the essential purchases in the paper industry and paper stocks India. The company has 6 zonal offices in India and a base of 67 dealers. It also trades internationally, exporting to more than 15 nations. The closing price for each West Coast Paper Mills share was 536.00 INR on 14th October 2022.
The business manufactures and sells writing and printing paper. In India's paper sector, Seshasayee Paper and Boards have been around for 60 years. 2,55,000 tonnes are the total installed capacity of the enterprise. South India accounts for 65–70% of the company's sales. It has one depot in Bengaluru and a chain of more than 50 dealers. The business also exports its goods to nations in the Middle East, Sri Lanka, Nepal, and the United States. Since the company has been working to reduce its debt over the past five years, it is now practically debt-free, which is how it became one of the finest paper sector stocks in India in 2022. The closing price for each Seshasayee Paper & Boards share was 283.80 INR on 14th October 2022.
The company Tamil Nadu Newsprint & Papers Ltd manufactures and sells paper, paper boards, cement, and energy. The company creates a diverse range of coated and uncoated paperboards that are ideal for the packaging industry and high-quality papers for writing and printing. Bagasse, a byproduct of sugar cane production, is the company's primary raw resource. This is distinct from other paper manufacturers who employ pulp made from discarded paper. Presently, 82% of sales come from paper and board, followed by 13% from energy and 5% from cement.
Sales in India account for 87% of the company's revenues, with exports accounting for the remaining 13%. The company currently has a paper mill with a 4,00,000 tpa capacity and a wrapping board mill with a 2,00,000 tpa capacity. When micro considerations are taken into account, the operating profits of TNPL have significantly decreased over the past few years and were just 9% in FY22. An increase in the price of pulp sugarcane bagasse's raw materials and energy has been the leading cause of the decline. The closing price for each Tamilnadu Newsprint & Papers share was 240.40 INR on 14th October 2022.
52 Week High
52 Week Low
|Market Cap (Rs. cr)|
|Century Textiles & Industries||821.90||1,024||685.70||9,180|
|West Coast Paper Mills||536.00||650.00||217.00||3,540|
|Seshasayee Papers and Boards||283.80||315.30||133.60||1,790|
|Tamil Nadu Newsprint & Papers||240.40||280.00||112.35||1,664|
(Share Price as of 14th October 2022)
Disclaimer: The securities quoted are exemplary and not recommendatory. Past performance is not indicative of future returns
The forecast for the Indian paper industry's long-term demand is still optimistic. The packaging industry, rising literacy rates, and the expansion of print media will be the main drivers of the growth in the paper.
The expansion of the paper industry and paper industry stock will also be aided by increasing government spending on the education industry and changing urban lifestyles. The paper stock market is anticipated to grow at a rate of 6 to 8 percent annually in the long term, given that these variables are likely to persist. Considering the industry's cyclical nature, odd years might yet occur.
This is not an investment advisory. The blog is for information purposes only. Investments in the securities market are subject to market risks, read all the related documents carefully before investing. Past performance is not indicative of future returns. Please consider your specific investment requirements, risk tolerance, goal, time frame, risk and reward balance, and the cost associated with the investment before choosing a fund, or designing a portfolio that suits your needs. The performance and returns of any investment portfolio can neither be predicted nor guaranteed.
How should I pick my paper stock?
Follow these procedures to choose the best paper stocks:
- Study the business.
- Build your portfolio with qualitative and quantitative stock analysis.
- Invest without emotion.
- Diversifying your portfolio reduces risk.
Why are shares in the paper sector rising?
Paper stocks are increasing. The primary factor is that things are improving despite India's low per capita use compared to its international counterparts. Demand is expected to increase from 16 kg per capita to 20 kg per capita by 2025.
How would I get a paper stock certificate?
A broker is the easiest way to receive a stock certificate, but it costs money. Asking your broker is the easiest approach to receiving a stock certificate nowadays. A brokerage business will have your identity and the number of shares you bought in an account.