Stock investors ALERT! Paper companies’ shares surge up to 18%, majority of them hit a new record high today

The paper companies’ shares are on a roll during Wednesday’s trade with the majority of them hitting a new 52-week high and are rallying up to 18 per cent on the BSE intraday trade amid demand revival.

Individually, Pudumjee Paper Products shares surged most in the list by 18 per cent to Rs 45.75 per share on the BSE intraday trade, followed by Star Paper Mills shares grew by 14.5 per cent at Rs 178 apiece, Orient Paper & Industries shares jumped 13 per cent at Rs 33.30 a share and Seshasayee Paper & Boards shares soared over 12 per cent at Rs 222.8 each share on the BSE intraday trade.

See Zee Business Live TV Streaming Below:

Whereas other paper stocks such as Astron Paper & Board Mill, JK Paper, Andhra Paper, Tamil Nadu Newsprint & Papers, Ruchira Papers and West Coast Paper trading higher between 5 per cent to 10 per cent on the BSE, as against 0.11 per cent rise in the S&P BSE Sensex, at around 11:45 am.

As per market analyst Sandeep Jain, the paper stocks are buzzing and are hot with each of them surging and hitting new record high as demand is expected to pick up in FY22 with schools, colleges, and office spaces likely to open as India surges to vaccinate each person in the country by year-end.

With schools, colleges, and offices going digital and mostly work from home, the paper and paper products sector was one of the worst-affected industries due to the outbreak of the Covid-19 pandemic. 

Similarly, the muted demand for printing of newspapers among others distorted the consumption of paper & paper products. And, this lower demand had a direct impact on the prices of paper and paper products that affected the revenues of the industry.

Except for Andhra Paper, Ruchira Papers, and Tamil Nadu Newsprint & Papers, all other paper manufacturing companies stock hit their respective new high during Wednesday’s trade today.