Best Paper Stocks in India

10 April 2024
8 min read
Best Paper Stocks in India
whatsapp
facebook
twitter
linkedin
telegram
copyToClipboard
(The stocks mentioned in the blog are as per Market Capitalization)

The paper industry holds a crucial position in driving the country's economic development. It serves critical roles across diverse sectors such as packaging, printing, FMCG, pharmaceuticals, healthcare and beyond.

As per the International Project Management Association (IPMA), it is expected that the consumption of papers in India will hit around 30 million tons by 2027. 

Paper Industry in India - A Brief Overview

India's first paper mill was established in Brahmapur in 1812. Since then, the industry has grown significantly in production capacity and technology. India now ranks as the world’s 12th major paper producer. The Indian paper industry is categorised into three segments based on raw materials: agro-based (utilising rice straw, wheat straw, biogases, jute, grasses, etc.), wood-based and recycled fibre or waste paper-based. 

India hosts over 800 paper mills, including 60 mills using agro residues, 25 mills using wood as raw material, and the remaining 715 mills based on recycled or waste paper. Furthermore, non-wood sectors contribute 70% to the country's paper and board production. It offers a wide range of paper varieties, from simple to sophisticated.

A report indicates that sales revenues in the Indian paper industry surged by a notable 45% in FY23, accompanied by increased sales volumes and higher production. The market is expected to achieve a CAGR of 6.6% until 2027.

📣 IPOs to look out for
View all IPOs
Companies
Type
Bidding Dates
SMECloses Today
SMECloses 03 Jun
SMECloses 04 Jun
RegularOpens 03 Jun
Regular-

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:

S.No.

Paper Stocks in India (as per market capitalisation)

1.

JK Paper Ltd

2.

West Coast Paper Mills

3.

Seshasayee Paper & Boards

4.

Andhra Paper Ltd

5.

Tamil Nadu Newsprint & Papers

*Our stock selection criteria for top stocks based on Market Capitalisation are mentioned at the bottom of this blog.

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.

*Stock Selection Criteria for Top Stocks Based on Market Capitalisation

These stocks are chosen based on their market capitalization, which represents the total value of a company's outstanding shares. The selection is arranged in descending order, placing the largest companies first and the smaller ones later. This helps prioritize stocks based on their market size. 

It is important to note that market capitalization in no way guarantees a company’s performance or the returns from its stocks. However, it can be used as a criterion for shortlisting companies from within a sector. Investors should recognize that other factors, such as financial health, management efficiency, and market trends, play crucial roles in determining the actual success of an investment. 

This stock selection should not be construed as investment advice/recommendations/offer/solicitation of an offer to buy/sell any securities by Groww Invest Tech Pvt. Ltd. (formerly known as Nextbillion Technology Pvt. Ltd.).

Disclaimer: This blog is solely for educational purposes. The securities/investments quoted here are not recommendatory.

To read the RA disclaimer, please click here
Research Analyst - Aakash Baid

Disclaimer

The stocks mentioned in this article are not recommendations. Please conduct your own research and due diligence before investing. Investment in securities market are subject to market risks, read all the related documents carefully before investing. Please read the Risk Disclosure documents carefully before investing in Equity Shares, Derivatives, Mutual fund, and/or other instruments traded on the Stock Exchanges. As investments are subject to market risks and price fluctuation risk, there is no assurance or guarantee that the investment objectives shall be achieved. Groww Invest Tech Pvt. Ltd. (Formerly known as Nextbillion Technology Pvt. Ltd) Ltd. do not guarantee any assured returns on any investments. Past performance of securities/instruments is not indicative of their future performance.
Do you like this edition?
LEAVE A FEEDBACK
ⓒ 2016-2024 Groww. All rights reserved, Built with in India
MOST POPULAR ON GROWWVERSION - 5.0.2
STOCK MARKET INDICES:  S&P BSE SENSEX |  S&P BSE 100 |  NIFTY 100 |  NIFTY 50 |  NIFTY MIDCAP 100 |  NIFTY BANK |  NIFTY NEXT 50
MUTUAL FUNDS COMPANIES:  GROWWMF |  SBI |  AXIS |  HDFC |  UTI |  NIPPON INDIA |  ICICI PRUDENTIAL |  TATA |  KOTAK |  DSP |  CANARA ROBECO |  SUNDARAM |  MIRAE ASSET |  IDFC |  FRANKLIN TEMPLETON |  PPFAS |  MOTILAL OSWAL |  INVESCO |  EDELWEISS |  ADITYA BIRLA SUN LIFE |  LIC |  HSBC |  NAVI |  QUANTUM |  UNION |  ITI |  MAHINDRA MANULIFE |  360 ONE |  BOI |  TAURUS |  JM FINANCIAL |  PGIM |  SHRIRAM |  BARODA BNP PARIBAS |  QUANT |  WHITEOAK CAPITAL |  TRUST |  SAMCO |  NJ