BackWhy education, paper stocks are soaring? Experts give buy call on these shares
Education and paper stocks are rising due to the expected rise in revenue of these companies after the reopening of schools in seven states and one Union Territory, say experts
-kiyD--621x414@LiveMint_1630482566783.JPG "NIIT, JK Papers and Orient Papers are among top education and paper stocks that may give sharp upside move in upcoming trade sessions, say experts. (Mint)")
PremiumStocks to buy today: On account of school reopening in seven states, some prominent education and paper stocks are soaring. In the education sector Aptech and Career Point share price shot up over 2 per cent in the intraday trade session while in the last 5 trade sessions these stocks have gone up around 13 per cent. Among paper stocks, Pudumjee Paper stock rose near 3 per cent, shares of Orient Paper shot up around 6 per cent while Andhra Paper stock price went up near 2 per cent today. According to stock market experts, these education and paper stocks are rising due to the expected rise in revenue of these companies after the reopening of schools in six states (Assam, Haryana, Madhya Pradesh, Rajasthan, Tamil Nadu and Telangana) and one Union Territory (Puducherry). Schools are reopening today in the national capital Delhi NCT as well.
Speaking on how reopening of schools in seven states and one UT is connected to the rise in education and paper stocks; Avinash Gorakshkar, Head of Research at Profitmart Securities said, "Due to lockdown post-Covid-19 outbreak, paper and education companies were under heat due to closure of schools. After the reopening of schools in some Indian states and UT, market is expecting sharp rise in revenue of these companies as demand for their product will go up after the reopening of schools. The present rise in education and paper stocks can be attributed to the school reopening only. However, in the long-term, paper stocks are expected to further rise as Government of India has banned single-use plastic leading to rise in demand for paper products."
Standing in sync with Avinash Gorakshkar's views; Santosh Meena, Head of Research at Swastika Investmart Ltd said, "Education and paper stocks are buzzing today as schools are opening in many states from 1st September 2021. There is a sentimental positive reaction on education and paper stocks but traders should remain cautious amid this rise as there is always a concern about the performance of the education sector while only a few paper stocks are there where investors can bet on. JK Paper and Pudumjee will remain our top pick from this space because of its strong presence and strong growth momentum in financials."
Rahul Sharma, Co-Founder, Equity99 said, "The education Sector is one of the worst affected sectors due to the outbreak of the Covid-19 Pandemic. The closure of education institutions, adoption of work from home by offices, muted demand for printing of newspapers among others disturbed the consumption of paper & paper products. However we are highly bullish on this sector in long run due to increasing literacy levels, growth in print media (particularly in the vernacular languages), and higher government spending on the education sector. Also, there is a buzz in these sectors with the reopening of Schools & Colleges. Our top picks from these sectors are NIIT, JK Papers and Orient Papers."
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