Paper Stocks Gain Boosted By Double-Digit Revenue Growth

The paper stocks including the likes of JK Paper, West Coast Paper, Seshasayee Paper etc. have all gained in the last one-week after reporting good set of Q1 numbers due to an uptick in demand, price and less input cost which was brought down by 7-9%.

JK Paper is trading with gains of 5.35% at Rs. 148.65, West Coast Paper (+3.78%) at Rs. 324, Seshasayee Paper (+0.45%) at Rs. 909.80. Stock of Ballarpur Industries is also trading higher by 1% at Rs. 10.10.

Revenue of all the paper stocks that have reported their Q1FY19 numbers so far have been at a whopping double-digit. Also the operating margins for these companies have also increased at the same time.

Boosted by fixed cost remaining constant, the increase in turnover at these paper manufacturing companies has improved margins.

Exception to this though has been the ITC's paper division as well as the financially weak Ballarpur Industries.

Also, there is a ban imposed on low-grade imports which resulted in lower supply to countries including India which in an otherwise scenario meets its 50% paper consumption requirement via imports.