Paper stocks in focus; Pudumjee Paper, Emami Paper hits 20% upper circuit

According to experts, demand is expected to pick up and grow by 11-15% year on year in fiscal 2022 with schools, colleges and office spaces likely to open and drive the demand.

Jul 07, 2021 02:07 IST India Infoline News Service

Businessman showing growing charts
Shares of Paper and paper product companies in focus today as many of them up 20% and also hit a new 52-week high.

Shares of Pudumjee Paper Products and Emami Paper soared 20% each, with Malu Paper Mills also gained 19%. Also, stocks such as Star Paper, Orient Paper, Seshasayee Paper and Shree Rama Newsprints surged between 11-19%.

Among other stocks which also rose in today’s trade, includes Andhra Paper and JK Paper.

According to experts, demand is expected to pick up and grow by 11-15% year on year in fiscal 2022 with schools, colleges and office spaces likely to open and drive the demand.

As we know, the paper & paper products industry is one of the worst-affected industries due to the outbreak of the Covid-19 pandemic.

As per the CRISIL report, it expects demand for printing and writing (P&W) paper to grow at a muted 1-3% CAGR and reach 5.5 million tonnes by fiscal 2025. Enrolment of students is expected to increase at a relatively faster pace of 0.5 – 1% CAGR over the next 3 years, compared with de-growth of 0.4% CAGR during the past 3 years.

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