Paper stocks surge up to 10% on price hike news – know analyst’s top pick, target price and stop loss
Individually, Pudumjee Paper Products shares jumped most -- 10 per cent to Rs 45.55 apiece on the BSE, followed by Emami Paper shares that surged nearly 9 per cent to Rs 183 on BSE.
Shares of paper manufacturing companies have jumped up to 10 per cent on the exchanges amid the price hike announcement across the sector. According to a Zee Business report, the paper manufacturing companies are supposed to hike prices by 5 per cent from September.
Individually, Pudumjee Paper Products shares jumped most -- 10 per cent to Rs 45.55 apiece on the BSE, followed by Emami Paper shares that surged nearly 9 per cent to Rs 183 on BSE.
While Orient Paper, West Coast Paper, and Star Paper Mills each surged around 7 per cent to Rs 31.65, Rs 629.55, and Rs 202.7 per share, respectively, on the BSE. And, JK Paper Mills and Tamil Nadu Newsprint shares soared nearly 5 per cent to Rs 433.5 and Rs 251.55 per share , respectively.
Andhra Paper shares gained by almost 4 per cent and touched a 52-week high of Rs 480 per share. Besides, West Coast and Star Paper also hit their respective 52-week highs on Wednesday.
घरेलू बाजार में पेपर कंपनियों की दाम बढ़ाने की तैयारी
₹3-5/किलोग्राम दाम बढ़ाने की योजना
1 सितंबर से बढ़ी हुई कीमतें होंगी लागू, 5% तक दाम बढ़ेंगे
अगस्त में भी कीमतें 8% बढ़ाई थी...#PaperStocks #JKPaper #PudumjeePaper #OrientPaper #StarPaper pic.twitter.com/YQYC8iFF3s
— Zee Business (@ZeeBusiness) August 24, 2022
In August, these paper manufacturers had also taken a price hike of 8 per cent, the Zee Business report said.
Zee Business Managing Editor Anil Singhvi while explaining the reason for consecutive hikes in the sector, said that the paper imported from China had been stopped, due to low production amid the power and energy crisis. This shall have a direct impact on domestic paper manufacturers, he explained.
TradeSwift Director and market analyst Sandeep Jain picked Pudumjee Paper Products as the best pick, giving a target of Rs 47-49 per share with a stop loss of Rs 38 per share in short-term basis.
According to Jain, Pudumjee Paper, based in Mumbai, makes good products other than normal paper such as crepe tissue and towels, décor and food grade papers, pharma grade papers, bathroom rolls, paper napkins among others under the popular brand of GreenLine.
The stock is trading at a PE multiple of 13x, profit CAGR is 33 per cent, ROCE is at 16-17 per cent, and reported highest ever quarterly profits in Q1FY23, Jain added.
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11:28 AM IST