In chat with Anil Singhvi, Mansi Dave says JK Paper, West Coast Paper, TN Newsprint and Star Paper to benefit in major way
As shares related to paper have been performing well, Zee Business Managing Editor Anil Singhvi decoded the reason behind it in order to reveal what is in store going forward
As shares related to paper have been performing well, Zee Business Managing Editor Anil Singhvi decoded the reason behind it in order to reveal what is in store going forward.
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Joining Anil Singhvi in the conversation, Mansi Dave, News Anchor and Senior Producer at Zee Business, said one of the major reasons is that rates of paper have increased by 60% in the last three months. This is not only the beginning, but a very strong start by paper industry since the lockdown, she said.
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पेपर शेयर में कड़क तेजी संभव?
जानिए पेपर शेयरों के लिए क्या है बड़ा ट्रिगर !@davemansi145 pic.twitter.com/FOJ1iOBGer
— Zee Business (@ZeeBusiness) February 19, 2021
"There was sharp demand of paper seen since the lockdown. Not just the domestic demand, but foreign demand of paper products has also shot up. It is expected that this demand will continue further for paper producers. During lockdown, the demand of paper had almost got stagnant, but with the easing of unlock phase and reopening of schools, colleges and manufacturing units, there is sudden spurt in paper demand," Dave said.
Paper demand also saw good orders from Pharma sector, she said. Dave said the importance of hygiene has increased due to coronavirus situation and it has also further helped with its demand in pharma sector. Growth in pharma sector also acted as catalyst by demand for paper products in this sector.
Besides Pharma, which was the main source of demand for paper products during lockdown, now FMCG, online shopping trend and importance of plastic ban among people are directly helping this segment.
Also, big companies using paper products instead of plastic is also helping paper industry.
Talking about stock that could benefit, she said big paper stocks like JK Paper, West Coast Paper, TN Newsprint and Star Paper could benefit from sudden demand for paper and it is expected these companies could post good result in upcoming quarter.
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