Best paper stocks to buy today, 7 July, recommended by NeoTrader's Raja Venkatraman

Despite margin compression for some players, the sector remains fundamentally strong, supported by rising demand from the packaging, e-commerce, and education sectors.

The Indian government has intensified efforts to protect domestic paper manufacturers from a surge in low-cost imports, particularly from China.

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India imported over 2.05 million tonnes of paper and paperboard in 2024-25, a 33% jump from China alone, valued at nearly ₹15,000 crore.

The Indian Paper Manufacturers Association (IPMA) has urged the government to ban inferior-grade imports and include paper in the exclusion list of the Asean-India FTA.

The government is set to implement quality control orders (QCOs) to restrict substandard imports, especially from China and Asean nations.

Anti-dumping duties and tariff hikes are being considered to level the playing field for domestic producers.

These measures are expected to reduce India’s reliance on Chinese imports, which currently account for 27% of total paper imports. The policy shift is already reflecting in stock performance, with several paper stocks rallying 10-35% in anticipation of improved domestic competitiveness.

Outlook: Structural tailwinds and investment potential

The convergence of policy support and rising demand offers a promising outlook for the sector:

Capacity expansion: Companies such as JK Paper and Tamil Nadu Newsprint are investing in capacity upgrades to meet growing domestic demand.

Sustainability focus: With increasing emphasis on eco-friendly packaging, paper manufacturers are well-positioned to benefit from the global shift away from plastics.

Stock market sentiment: Investors are eyeing paper stocks as potential beneficiaries of import substitution and government protectionism.

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Looking at the above factors, I have selected some candidates from this sector that are showing potential to revive in the next few months.

Here are three paper stocks to buy or sell as recommended by NeoTrader's Raja Venkatraman for today:

WSTCSTPAPR (Cmp 563.15)

Buy above ₹565 and on dips near ₹533 with a stop below ₹520 for a rise towards ₹615 - 635.

Why it’s recommended: A strong surge is seen on Friday in this counter, coupled with steady buying interest that emerged at every decline, has pushed the prices ahead. Ahead of the results, the prices have pushed beyond the median line, which spells well for the counter. The paper sector is witnessing steady buying interest that is driving the trends upward. The RSI is continuing to push for more upside and can be considered as a continuation of the positive signs of resumption.

Key metrics: P/E: 12.63 | 52-week high: ₹382.15 | Volume: 690.87K

Technical analysis: Support at ₹490, resistance at ₹640.

Risk factors: Rising input costs, increasing competition from imports, and a shift towards digital media raise issues.

Buy: Above ₹565 and dips to ₹533.

Target price: ₹615-635 in 1 month.

Stop loss: ₹520.

JKPAPER (Cmp 406.30)

Buy above ₹407 and on dips near ₹380 with a stop below ₹365 for a rise towards ₹450-470.

Why it’s recommended: Stocks from the paper space have attracted attention, doing well in recent months. This counter has managed to hold on to key support zones around 380, and the prices quickly revived above the near-term support zone to head strongly higher in the latter half of the week. We can observe that there are sizeable volumes building up, suggesting that the prices could now travel to the next resistance zone around 450. The demand at lower levels and a nice long body bullish candle does suggest more upside in the coming sessions.

Key metrics: P/E: 17.55 | 52-week high: ₹599 | Volume: 7.73M

Technical analysis: Support at ₹350, resistance at ₹500.

Risk factors: Rising input costs, increasing competition from imports, and a shift towards digital media raise issues.

Buy: CMP and dips to ₹380.

Target price: ₹450-470 in 1 month.

Stop loss: ₹365.

PDMJEPAPER (Cmp 121.42)

Buy CMP and dips to ₹113, stop ₹111, target ₹134-140.

Why it’s recommended: PDMJEPAPER is showing some steady progress, and the periodic higher high/higher low formation indicates that the trends are firmly hinting at some potential upside in the coming days. The Cup and Handle formation seen since the last few weeks, as per Ichimoku TS & KS lines, is hinting at a possible upward drift.

Key metrics: P/E: 12.05 | 52-week high: ₹232.15 | Volume: 413.61K

Technical analysis: Support at ₹100, resistance at ₹140.

Risk factors: Rising input costs, increasing competition from imports, and a shift towards digital media raise issues.

Buy: CMP and dips to ₹113.

Target price: ₹134-140 in 1 month.

Stop loss: ₹111.

Conclusion

While Q4FY25 earnings were mixed, the Indian paper sector is poised for a structural re-rating. Government initiatives to curb Chinese imports, coupled with rising domestic demand and sustainability trends, could catalyze a new growth cycle. For investors and policymakers alike, paper stocks may soon turn from a cyclical play into a strategic asset class.

Also Read: Falling imports can get MDF firms out of woods, but it will be slow grind

Raja Venkatraman is the co-founder of NeoTrader. His Sebi-registered research analyst registration no. is INH000016223.

Investments in securities are subject to market risks. Read all the related documents carefully before investing. Registration granted by Sebi and certification from NISM in no way guarantees performance of the intermediary or provide any assurance of returns to investors.

Disclaimer: The views and recommendations given in this article are those of individual analysts. These do not represent the views of Mint. We advise investors to check with certified experts before making any investment decisions.