There is a strong rally in paper stocks. One reason for this is that most of the paper stocks have increased the prices keeping in mind the increasing demand and shortage of waste paper. The stock price of JK Paper, West Coast Paper and Andhra Paper has seen a strong rise so far this week. In the last 5 trading sessions, these stocks have seen an increase of 20 per cent to 26 per cent.
Market experts believe that this sector may see further growth. On Wednesday i.e. in today’s business, JK Paper touched a new 52-week high of Rs 300 per share, registering an increase of about 6 percent. Similarly, West Coast Paper today went up to Rs 310 per share with a jump of more than 7 per cent and also made a new all-time high. Apart from this, Andhra Paper jumped nearly 10 per cent, hitting a new record high. Meanwhile, Seshayee Paper has gained 6.5 percent, Tamil Nadu Newsprint & Papers has seen an increase of more than 8 percent in intraday today.
Similarly, the stock of Satia Industries has gained 5 percent, Emami Paper has gained about 6 percent and Rushil Decor has gained about 4 percent.
S Ranganathan of LKP Securities Says that this week there has been a strong buying in paper shares. Almost all paper companies have increased their prices. Which has a positive effect on their stock price. Apart from this, the fourth quarter is often better for paper companies as demand from schools and offices is seen increasing in this quarter.
How will the future of paper stocks be?
Centrum Institutional Research Has said in one of its notes that the demand of the paper industry seems to be going above the pre-covid level. Apart from this, paper prices are also in a bullish phase. Looking at this, it seems that the earnings of JK Paper, West Coast Paper and Andhra Paper will see good growth in the coming quarters. So investors should keep an eye on this stock.
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S Ranganathan of LKP Securities It is said that they see JK Paper and West Coast Paper in very good condition. Going forward, these stocks can see good growth. It is worth noting that in the last 5 trading sessions, Andhra Paper has seen an increase of about 26 percent, West Coast 23 percent and JK Paper 25 percent.
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