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Business News/ Markets / Stock Markets/  Why paper stocks are skyrocketing? Experts recommend these shares to buy
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Why paper stocks are skyrocketing? Experts recommend these shares to buy

Stocks to buy today: Paper mills are least affected by recent global triggers like Ukraine-Russia war, soaring crude oil price and other commodity prices ascending to its multi-month highs, believe stock market experts

Shares to buy: unlock theme has fueled demand for papers as schools and other educational institutions are reopening now, say stock market experts. (iStock)Premium
Shares to buy: unlock theme has fueled demand for papers as schools and other educational institutions are reopening now, say stock market experts. (iStock)

Stocks to buy on Monday: Stock markets across world are under pressure due to geopolitical tension and soaring inflation. However, despite Russia-Ukraine war and commodity prices rising to multi-month highs, paper stock in India have delivered stellar return in last one month. In last one month, West Coast Paper Mills share price has ascended around 25 per cent, shares of JK Paper skyrocketed over 30 per cent, Orient Paper & Industries stock price shot up over 14 per cent, Ruchira Papers shares surged near 15.50 per cent whereas Pudumjee share price ascended near 16.50 per cent.

According to stock market experts, paper mills are least affected by recent global triggers like Ukraine-Russia war, soaring crude oil price and other commodity prices ascending to its multi-month highs. In fact, unlock theme has fueled demand for papers as schools and other educational institutions are reopening now. Recently pulp and waste paper prices in the international markets have gone up that may give margin benefits to the paper mills in upcoming quarters. They advised positional investors to add paper stocks like Orient Paper, West Coast Paper, JK Paper and Andhra Paper for 3-6 months time.

Speaking on the reasons that are fueling paper stocks' rally; Avinash Gorakshkar. Head of Research at Profitmart Securities said, "Reason for rise in paper stocks can be attributed to bulls moving towards these stocks in last one month as these companies are least affected by geopolitical tension and soaring inflation. In fact, they use pulp and waste paper, whose prices have gone up in recent times. So, market is expecting margin benefit to paper mills on rise in these raw materials they use because they have huge unsold inventory of pulp and waste papers. Apart from this unlock theme is also working in favour of paper mills as demand form paper has gone northward after reopening of schools and other educational institutions."

Paper stocks to buy for mid term

Avinash Gorakshkar of Profitmart Securities went on to add that such developments are expected to continue benefiting paper mills in next one to two quarters and hence one can add paper stocks in one's portfolio for next 3-6 months. He said that quality paper stocks like Orient Paper and West Coast Paper can be a good option for positional investors as these stocks are available at discounted price these days.

Shares to buy for short term

On which which paper stocks to buy today; Anuj Gupta, Vice President at IIFL Securities said, "One can buy JK Paper shares at current market price for short term target of 335 apiece levels maintaining stop loss at 290 per share levels. Those interested in Orient Paper shares, can initiate momentum buy at CMP for short term target of 40 maintaining stop loss at 27. Similarly, Andhra Paper stock can be bought at current market price for short term target of 320 maintaining stop loss at 255 apiece levels."

Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint.

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ABOUT THE AUTHOR
Asit Manohar
Chief Content Producer at Live Mint Digital Team
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Published: 20 Mar 2022, 11:30 AM IST
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