Best Paper Stocks to Buy in India – List of Top 10 Paper Industry Shares of 2022Last Updated Date: Aug 11, 2022
Find out all details about the Best Paper Stocks to buy in India.
There are two main stock markets in India. The Bombay Stock Exchange has over 5000 listed stocks and the National Stock Exchange has over 2000 listed stocks.
These stocks are bifurcated in various ways. Based on market cap, the sector they operate in, etc.
Investors generally opt for diversification by investing in stocks across different sectors.
Each sector has different strengths and weaknesses. By diversifying, investors can get benefits from all.
In this article, we bring you information on one such promising sector – The Paper sector/industry.
This sector has several paper companies in India. In this article, we will drill down on the best Paper stocks to buy.
Know about Paper Sector in India
The India Paper Industry is a vastly spread sector. It alone is responsible for 3.7% of the global Paper production.
It consists of the manufacture of various types of paper such as newsprint papers, office paper, filter paper, parchment papers, etc.
Furthermore, it also includes various Paper by-products such as Paper bags, paper boxes, paper cards, paper books, etc.
The industry has a total capacity of 15 million tonnes per annum. Its annual revenue is around Rs.60,000 crores.
The Indian stock exchange lists several of the top Paper companies in India. We have carried out a study to bring to you a list of the top Paper sector stocks to buy.
Best Paper Stocks in India – List of Top 10 Paper Sector Stocks to Buy Today
Here is the list of Best Paper Stocks in India for Today, Tomorrow & Long Term Investment –
We have listed the listed companies in the paper industry in order of their market capitalization. Basis this, we have noted the best paper shares in India.
Apart from the top 10, we will also discuss the next 5 ranked companies in our honorable mentions category.
Market capitalization indicates the market value of the total outstanding listed shares of each company.
It gives an indicative idea of the size and value of the company.
Apart from considering this parameter, there are several other important parameters that we have mentioned.
These include their last traded price, their 52-week high and low as well as their 6 months and 1-year price growth percentage.
These parameters give an idea about how these stocks have performed in the recent past.
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JK Paper – Best Paper Product Stocks in India
JK Paper Ltd is part of the bigger JK enterprises group which has a presence across sectors. 1960 was when JK Paper was established.
It has 2 large-scale Paper mills. The total production capacity is 4.55 lac tonnes per annum.
Its products include office papers, packing boards, and special papers such as MICR paper, parchment paper, etc.
These are marketed under several brand names such as JK Copier, JK Cedar, etc. It is considered one of the best paper product stocks in India.
It sells its products through a distributor network. This network has over 4k dealers. It also exports copy paper to over 35 countries.
JK Paper has a Market cap of Rs.35,32.00 crores and is trading online presently at around Rs.200 mark.
Why invest in JK Paper stocks?
- It has a high EPS growth of 8.30% which indicates sustained good growth.
- Its net profit margins are also more than 20% and rising.
- Has invested significantly in cost efficiency- through its Gujarat expansion project.
- Is the market leader in its space
Thus, JK Paper is one of the best paper shares to buy.
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West Coast Paper – Best Paper Product Shares to buy
West Coast Paper Ltd is one of the oldest Paper mills that exist today. This makes it one of the most established paper stocks in India.
1955 is the year of the establishment of this company. Its mill is located in Karnataka on 240 acres of land.
Its product portfolio includes printing Paper of 52 to 140 GSM, Machine glazed Paper and boards of 80 to 300 GSM, premium printing Paper, security feature papers, paper boards, etc.
It generates annual revenue of nearly Rs. 1400 crores from the sale of its paper and paper products.
West Coast Paper commands a market capitalization of Rs. 15,87.40 crores today. It has given a price return of more than 30% to its investors over the last year.
Today it trades around Rs. 240 mark and is yet an attractive buy for investors.
Why invest in West coast paper stocks?
- It has shown an impressive 65% YoY revenue growth in the most recent results
- The increase in import duty on papers will favor domestic production and sale of west coast paper
- It is at a breakout point on its technical chart, indicating the start of an upward trend in the share price
These factors can make West Coast Paper Ltd one of the best paper product shares to buy.
Emami Paper mills – Top Paper Sector Stocks
The next in our list of top paper sector stocks are the stock of Emami Paper Mills Limited is an offshoot of the large Emami group.
1981 is the year of establishment of the company. It is a specialized paper company. Its expertise lies in 3 specific paper areas.
This includes manufacturing of newsprint Paper, writing and printing Paper, multilayer-coated board.
Its production capacity for each of these segments is 101000 tonnes per annum, 51000 tpa, and 2 lac tpa respectively.
Its annual turnover exceeds 1200 crores.
Emami Paper mills today have a market capitalization of Rs.10,36.60 crores on the Indian stock exchange today.
It has clocked a 67% growth in its paper product share price over the last year. Even today, Emami Paper stock can be a good buy for investors. Some of the reasons include:
Why invest in Emami Paper Mills stocks?
- A consistently increasing Return on equity (RoE). This is specifically the case over the recent quarters. Its RoE is considerably higher than the industry average.
Emami Paper has witnessed a significant reduction in its raw material prices recently. This will result in a significant cost-cutting and profitability increase.
- As single-use plastic products see a ban from the government, the demand for Emami Paper’s products will increase
- The recent high share price growth is indicative of all these factors. Thus, making it third-ranked in our list.
Seshasayee Paper – Paper Share Price
The next of the top paper companies in India is Seshasayee Paper and Boards Limited.
1960 is when the company was incorporated, making it a 60-year-old company with vast experience.
Its city of incorporation is Chennai in Tamil Nadu. It operates through two paper plants. One is located at Tirunelveli in Tamil Nadu.
The other plant is under an expansion project and is located in Erode in Tamil Nadu.
The product portfolio of the company predominantly comprises various types of paper such as copier paper, office papers, etc of various GSMs.
The Seshasayee Paper share price is just a little over Rs.160 today. Its total market cap is Rs.10,33.30 crores.
Why invest in Seshasayee Paper stocks?
This stock has several positives which make it a good buy for investors. These include:
- A Rs.315 crores expansion project in its Erode mill is underway. This is likely to increase its production capacity considerably. This can contribute to the revenue growth of the company.
- It has seen a tremendous increase of 50% in its total income and more than 38% growth in its net profits in the Sep 2021 quarter.
- Paper being the next best alternative to plastic after the plastic ban, will boost demand for Seshasayee products.
Satia Industries – Top Paper Industry Stocks in India
Fifth in our list of top paper industry stocks in India is Satia Industries Limited.
This company is amongst the largest paper companies that are wood and agro-based.
Dr. Ajay Satia founded the company in 1980. It uses wood chips, veneer waste, and wheat straw to manufacture its products.
Thus, making Satia Industries Ltd an eco-friendly paper company. Its manufacturing facilities are self-sufficient i.e. it generates its power, has its pulping plant, and has its effluent discharge facility.
It also has 3 paper mills for producing its products.
Its product portfolio includes paper GSMs ranging from 42 to 200 GSM. It also manufactures virgin-based fibre paper cups.
With a current share market capitalization of Rs.9,55.50 crores, the company is positioned to grow significantly in the years to come.
Why invest in Satia Industries stocks?
This positive outlook for the paper share price is on account of the following:
- It is a front runner with its green initiatives and eco-friendly ways, which is the future.
- It is in the process of introducing several more paper packaging products that will be a direct alternative to banned plastic. This can significantly increase demand and sales.
- It has extensive expansion plans as well. These include commissioning a 4th paper machine.
- It has received considerable export interests and orders for some of its patented products.
Thus, the stock of Satia Industries Ltd is a good buy for investors.
Andhra Paper – Top 10 Paper Stocks
Andhra Pradesh Paper Mills Limited is a subsidiary company of West Coast Paper Mills. 1964 is when it was established.
Its core business comprises the manufacture of paper and pulp. It has two production facilities in Andhra Pradesh.
One is in Rajahmundry and one is in Kadiyam. The total production capacity between the two is 2,40,000 tonnes per annum.
Its products include writing and printing paper, specialty papers, and copier paper. Its writing papers are used to make notebooks, calendars, diaries, etc.
The specialty paper portfolio includes poster paper, paper cup material, board paper, ribbed paper, etc.
It has sales both in the Indian domestic market and export market. It has an annual revenue of nearly Rs. 1,000 crores.
Investors should consider adding the stock of Andhra Paper to their portfolio.
Why invest in Andhra Paper stocks?
Some of the reasons for the expected increase in the Andhra Paper company share price are:
- Increasing Q-o-Q revenue; 32% growth from July 2021 to September 2021
- It has a high promoter holding, more than 70% is good to have factor
- Its stock is currently undervalued i.e.: it is available at a lower than industry average P/E ratio. This indicates that it has the potential for a good price rise
TN news prints – Best Paper Stocks to buy
The next on the list of best paper stocks to buy in Tamil Nadu Newsprint and Papers Limited. Incorporated in 1979, Tamil Nadu Newsprint and Papers is a government-formed company.
It has a 4,00,000 TPA paper mill capacity and a 2,00,000 TPA packaging board mill capacity. It boasts of over 1 billion customers.
This includes exports to over 60 countries. Its products consist of several varieties of papers as well as types of packaging boards.
The company’s annual report revenue is almost Rs. 3,000 crores.
With a market capitalization of 851.20 crores, TN Newsprint and Papers is currently trading at a price of around Rs.123.
Why invest in TN news prints stocks?
This company has a positive outlook for investors on account of the following:
- It has an extensive expansion plan underway – set up of Pulp mill under its Mill II Expansion plan
- With this it is estimated to increase its production capacity considerably, to reach 1 million TPA capacity by 2030
- It is currently in an under bought phase making it an attractive buy for investors
Thus, TN Newsprint and Papers Limited is amongst the best paper shares in India.
Rushil Décor – Top Paper Stocks to buy
Rushil Décor was incorporated in 1993 by the Thakkar family. It became a listed company in 2011. Its expertise lies in manufacturing decorative high-pressure laminates and panel boards.
Panelboards include medium density fibre boards, high-density fibre boards water-resistant, pre-laminated decorative MDF boards, and PVC boards.
These products are considered as an offshoot of the paper industry as they are sourced from similar wood-based raw materials.
Thus, Rushil Décor features in the list of listed paper companies in India. It has an annual production capacity of nearly 40 lac sheets.
It has its manufacturing facilities across Gujarat and South India. Also, it exports its products to 42 countries.
Rushil Décor has a market capitalization of Rs.7,59.50 crores. It has seen a 100% growth in price in the last year.
Why invest in Rushil Decor Stocks?
Rushil Décor is a top paper stock to buy for investors for the following reasons:
- It has a consistent record of dividend payouts over the last 10 years. Thus, traders can expect good income from this stock
- Their manufacturing facilities are of world-class standards. Thus, they can effectively cater to the growing interior segment in India and abroad
- Its income has nearly doubled in the last quarter – from Rs.91 crores in June 21 quarter to RS.171 crores in September 21 quarter. This indicates that the company’s growth is on an upward trajectory
Kuantum Papers – Best Paper Companies in India
Kuantum Papers Limited is the ninth company in our list of best paper companies in India. It was established in 1980 in the backward areas of Punjab.
Their expertise is in manufacturing wood-free writing paper. Thus, it is an eco-friendly alternative to conventional paper production.
The raw materials it uses are agricultural residue, straws, bagasse, and wood.
Its paper products include cream wove paper, map litho paper, copier paper, cartridge paper, parchment paper, stiffener paper, and ledger paper.
Its plant at Hoshiarpur in Punjab is an integrated pulp and paper facility. The facility is located on 257-acre land property. It has a capacity of 1,00,000 tonnes per annum.
Why invest in Kuantum Papers Ltd stocks?
Globally there is a shift in consumer preferences to environment-friendly companies and products.
Kuantum Papers focuses on utilizing agricultural waste to produce paper. Thus, it should see a rise in demand and sales in the years to come:
- With a market cap of Rs.755.70 crores, Kuantum Papers is a small-cap company. However, it has delivered higher returns than its broad peer group in its market cap segment.
- It has a high promoter holding (more than 70%).
- The company has a strong balance sheet that attracts all types of Investors.
Orient Paper and Industries – Top 10 Paper Shares to buy
Rounding up our list of Top 10 paper shares to buy is Orient Paper and Industries Limited. This company was established in 1936 with a single paper machine.
It is part of the larger conglomerate – the CK Birla group of companies. Orient Paper has its manufacturing plants at Amlai, Madhya Pradesh.
Its plants are fully integrated and independent right from the raw material to the finished product and by-product stage.
It has its power generation plant, pulping plant as well as paper machines. Its products include writing and printing papers and industrial and specialty papers.
It also manufactures world-class tissue papers. Its products are sold domestically as well as exported to several countries. Its annual turnover exceeds Rs. 450 crores.
Why invest in Orient Paper and Industries stocks?
Certain aspects make Orient Paper a good paper product share to buy. These include:
- Revival of demand for school and office papers as the pandemic settles. These are the main products of Orient Paper and thus its demands and sales should grow
- Increase in import duty on paper and its raw materials, to shift demand towards domestic companies such as Orient Paper
- The ban on single-use plastic products will also favor the specialty paper segment of this company
- Finding the right stocks also needs quite a lot of equity research
NR Agarwal Industries – Paper Sector Stocks to buy
NR Agarwal Industries Limited has made our list of honorable mentions in paper sector stocks to buy.
1993 is the year of establishment of this company. With its registered office in Mumbai, it has its plants in Vapi and Sarigam in Gujarat state.
Its annual production capacity is 3,54,000 tonnes per annum. Its focus is on manufacturing paper and paper boards from 100% deinked wood-free recycled waste.
Also, its products are sold in India and exported to over 20 countries in the world. Its eco-friendly production process and waste management philosophy make it a clean and green company.
Thus, it has substantial potential for growth in the coming years.
Pudumjee Paper – Paper Companies Stocks to buy
Starting in the British era, Pudumjee Paper Products Limited saw a revival in 1964 with the setup of its plant in Pune.
Today, it has a wide portfolio of products. This includes tissue papers, specialty papers, food-grade papers, printing papers, etc.
Its production capacity is 72,000 tonnes per annum. Pudumjee paper is expected to gain considerably from the impending ban on single-use plastic.
It is ready to manufacture the next best alternative to plastic – paper products. Its nearly 100% price rise in the last year has made it one of the best paper company’s stocks to buy.
Ballarpur Industries – Paper Product Companies Shares to buy
Ballarpur Industries Limited was incorporated in 1945, with its office in Gurugram. It is a subsidiary of the Avantha group.
Its main business includes the manufacture and sale of writing and printing paper. It operates under the world-famous brand name – BILT. It has an annual revenue of over USD 7 crores.
As schools and workplaces are resuming operations, the demand for its products is rising. It has thus seen the highest share price growth amongst its peers over the last 6 months – 62.5%.
This makes it sought after amongst the paper product company’s shares to buy.
Genus Paper and boards – Paper Companies in India
Genus Papers and boards limited was established in 1996. Its registered office is located in Moradabad, Uttar Pradesh.
Its primary products include Kraft Paper and M.S. Ingot. Kraft paper is used in packaging and corrugated boxes.
MS Ingot is used in the housing and infrastructure segment. It has a long and reputed clientele such as Century pulp and paper, Onida, Videocon, Dabur, LG, Samsung, etc.
The increase in spate of online deliveries is increasing the demand for packing materials and boxes.
Genus paper and boards are a direct beneficiary of this. This makes it an in-demand company amongst the paper companies in India.
Shree Rama news – Paper Industry Stocks in India
Shree Rama Newsprint Limited is a listed company that was formed in 1993. It is one of the biggest producers of recycling-based writing and newsprint paper.
It has its manufacturing plant in Surat Gujarat on a huge 230-acre land. Also, it has a 1,50,000 metric tonnes capacity.
By using 100% recycled materials it is a leading eco-friendly company.
Increasing demand for papers post-pandemic plus its ‘green production’ process makes it led amongst the paper industry stocks in India.
How to find Paper stocks for trading?
Now that you know about the top paper stocks in India, you can begin trading in paper stocks.
However, you may not wish to invest in as many as 10 or 15 companies from the same sector.
Thus, you can apply certain parameters to assess which paper stocks to choose and include in your portfolio. These include:
Track its price movements – Stocks that have vast differences in their 52-week highs and lows can indicate high volatility.
Analyze its P/E ratio – The price-earnings ratio indicates how a company’s share price is relative to its earnings per share.
Choose a stock that has a relatively lower P/E ratio especially compared to its peer group or market cap segment.
Analyze financials – Choose stocks that have stable fundamental analysis – consistent growth and well-managed debt.
Analyze news – By tracking the latest news in the paper sector you can identify companies that are likely to have better growth potential
How to invest in Paper sector stocks?
Like all other investments, investing in paper sector stocks requires you to have a demat account and an active trading account.
These can be opened with any broker or securities firm.
There are broadly two types of brokers – one who is linked to banks such as Axis Securities, HDFC Securities, etc, and two independent brokers such as Zerodha, 5 Paisa, etc.
You can choose a broker of your choice by assessing your convenience as well as comparing the brokerage plans they offer.
Once you have an active demat and trading account, you will be provided with login credentials.
You must maintain an adequate balance in the bank account linked to your securities account.
Once you log in to your account, you can create a watchlist of your selected paper sector stocks.
Every trading platform or app will have a section for buying and selling stocks. In this manner, you can go ahead and invest in paper stocks.
Top Paper companies in India – Conclusion
With the covid pandemic settling down, the recent muted demand of the paper sector is expected to see a significant rise.
As schools and offices resume normalcy, the demand for paper will also rise.
Furthermore, with increasing online deliveries, the packaging industry is seeing high paced growth.
Yet, the biggest factor contributing to the increase in the growth of the paper sector is the ban on single-use plastic goods.
Thus, the top paper companies in India are expected to grow at a healthy growth rate in the coming years.
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