Best Paper Stocks in India

Top Paper Stocks in India in 2024 as per Market Capitalisation

The following table outlines the best paper stocks in India in 2024 sorted as per market capitalisation:

Overview of Best Paper Stocks in India as per Market Capitalisation

Here is an overview of the best paper industry stocks in India as per market capitalisation.

1) JK Paper

Founded in 1962, JK Paper Limited is a top player in manufacturing and supplying packaging boards, and branded papers. It operates in 4 segments - writing and printing papers, coated printing papers, office and copier papers and high-end packaging boards.

JK Paper’s writing and printing papers section produces various stationery products such as books, notebooks, envelopes, wrappers, etc. offered in standard and personalised sizes. Artboards and art papers are provided under coated printing papers. 

The office and copier paper segment offers a range of premium quality cut-size paper for versatile printing and copying applications. It also provides packaging solutions for various industry applications like FMCG, pharma, etc.

JK Paper has 3 pulp and paper mills, including CPM in Songadh (Gujarat) on the Western coast, JKPM in Rayagada (Odisha) near the Eastern coast of India, and SPM in Kagaznagar, Telangana. It serves customers in more than 60 countries across the Middle East, the USA, South-East Asia, Europe and Africa.

2) West Coast Paper Mills

Incorporated in 1955, West Coast Paper Mills Limited primarily makes paper for printing, writing and packaging. The company’s product segments include printing and writing papers, premium printing papers, security and HI-value grades papers, MG varieties, business stationery, cup stock and coated duplex board.

WCPM offers a variety of quality printing and writing paper from 52 to 140 gsm, suitable for modern print-houses requiring high-quality paper for commercial to premium printing at affordable prices. WCPM is known for its strength in value-added, customised, and niche product segments for high-end applications. 

Popular grades like MICR Cheque Paper, Super Shine, Azure Laid, Bond, Parchment, Duraprint and Alkali-Resistant paper are available. Additionally, WCPM offers high-quality machine-glazed paper and boards ranging from 80 to 300 gsm. Furthermore, WCPM offers a premium range of business stationery, including multi-purpose office paper in various GSM options tailored for high-end office printers. Its products boast superior quality, versatile functionality, and affordability, catering to diverse business needs, from photocopying to corporate presentations. 

3) Seshasayee Paper & Boards

Seshasayee Paper and Boards Limited (SPB) manufactures and sells paper and paper boards. It particularly focuses on printing and writing paper. The company operates plants in 2 locations - Tirunelveli and Erode, with a combined capacity of approximately 2,55,000 tons of paper per year.

MF I products comprise Azurelaid (G/A), Color Sprint (Pink/Blue/Yellow/Green), Ledger Paper (Blue), Azurewove, Parchment Paper (W/NS), Creamlaid (W/NS), and Creamsoft. The MF II products include MF BaseBoard, School mate (W/NS), Diary Paper, Creamwove (W/NS), Book Printing (W/NS), Index, and Plain Paper (High Bulk).

Additionally, the company offers MG products like MG Poster (W/NS), and MG Poster (Blue/Green/Beige/Pink/Yellow). The Yankee product segment includes MG Poster (Orange), MG Ribbed Kraft (OT), Plain Poster (UV-ve) (W/NS) and more.

4) Andhra Paper

Formerly known as International Paper APPM Limited, Andhra Paper Limited was incorporated as Andhra Pradesh Paper Mills in 1964. Andhra Paper manufactures writing, printing and copier papers for domestic and international markets.

It has production facilities in Rajahmundry and Kadiyam, which include a recycling unit and can produce a total of 2,40,000 tons in a year. It provides products in 3 segments - writing and printing, copier and speciality. 

The company specialises in producing pulp, paper, and paperboard for various uses in businesses and homes. Its signature brands like Truprint Ivory, Primavera, Primavera White, and others offer a diverse range of products suitable for notebooks, textbooks, journals, calendars and commercial printing.

Catering to both domestic and international markets, it provides writing, printing, copier and industrial papers, along with speciality-grade products designed for specific applications. The company also offers a variety of office documentation and multipurpose papers.

5) Tamil Nadu Newsprint & Papers

Founded in 1979, Tamil Nadu Newsprint and Papers Limited, an Indian company, is involved in manufacturing and selling paper, packaging board and cement. It manufactures and sells various paper products such as  TNPL Copy Crown, TNPL Ace Marvel, TNPL Hitech Maplitho, TNPL Radiant Stationery, TNPL Printer's Choice and more.

Tamil Nadu Newsprint and Papers’ packaging segment is ideal for notebook and textbook covers, pharma and food packaging, beverages, cosmetic and personal care products and more. 

Additionally, it manufactures and sells cement products like TNPL Power Bond and TNPL Power Pack. The company’s paper mill can produce 4,00,000 tons per annum, and the packaging board can produce 2,00,000 tons per annum. The company strives to produce high-quality paper and paperboards, aiming to surpass an annual production of 1 million tons by 2030.

Factors to Consider Before Investing in Paper Stocks in India

Here are some essential factors you must keep in mind before investing in paper stocks:

• Cost 

Paper manufacturing cost is one of the critical issues that most paper industries face. Some companies fail to maintain a balance between cost with quality, efficiency and sustainability. Thus, you should invest in companies that focus on improving efficiency and reducing waste, thereby making it profitable. 

• Raw Materials

You must carefully monitor the prices of raw materials such as wood pulp and energy before making investment decisions in paper stocks. Understanding the potential impact of these price fluctuations on the industry's profitability is crucial for making informed investment choices.

• Innovative

Make sure to monitor if the company you are interested in investing in keeps updating its technology to stay competitive. For example, many paper companies are using new packaging materials that are eco-friendly and break down naturally.

• Company Finances

You must check how each paper company is doing financially. Take a look at their past performance, revenue growth, cash flow statements and profit margins. 

• Supply Chain Disruption 

Before buying paper stock, consider supply chain disruptions. The paper industry in India heavily relies on international shipping routes for raw materials. The shortage of shipping containers can cause havoc in the supply chain. 

Should You Invest in Paper Stocks?

Investing in paper stocks comes with its own set of considerations and challenges that you should keep in mind.

The paper industry faces economic fluctuations, impacting the performance of paper stocks. Moreover, the volatility of raw material costs, such as wood pulp and energy, can also affect the profitability of paper companies. Additionally, technological advancements, like the rise of digital media and e-books, pose a long-term threat to the demand for traditional paper products, potentially impacting paper stocks. Moreover, there are also environmental concerns in this sector as paper mills are major polluters and face increasing regulations.

The Bottom Line 

Buying paper stocks requires careful consideration of various factors such as company finances, raw material prices, and industry outlook. By carefully weighing the factors and considering your risk appetite, you can make informed investment decisions regarding whether to add paper sector stocks to your portfolio or not.