According to the initial reports, the DGTR has recommended levying $100-$540 per tonne of paper import. The investigation was demanded by ITC and Pudumjee Papers.
Following the development, Pudumjee Paper Products soared 11 per cent to Rs 44.2, whereas
gained 7 per cent to Rs 238.15 on Thursday.
Santosh Meena, Head of Research at Swastika Investmart, said the paper stocks opened higher after DGTR’s anti-dumping duty recommendations.
Tamil Nadu Newsprint and Paper, Emami Paper Mills and Orient Papers jumped 6 per cent each to Rs 137.75, Rs 177.20 and Rs 319.5 respectively.
Likhita Chepa, Senior Research Analyst, CapitalVia Global Research, said the paper sector has seen some green shoots in recent times.
Seshasayee Paper & Boards, Genus Paper & Boards and NR Agarwal Industries added 5 per cent each. However, all the stocks gave up the majority of their gains as the session progressed, thanks to profit booking at higher levels.
“Power shortage in China is also leading to higher prices for paper and that is another positive trigger for the industry,” Meena added.
Paper stocks have been on the investor’s radar due to various reasons over the last few weeks. The ban on single use plastic from next year by the central government and a sharp decline in raw material prices have added to the euphoria on the counter.
Meena said the outlook for paper stocks is still bullish, but investors should be cautious while choosing companies in this bull run. He picked JK Paper for its strong presence and strong growth momentum in financials.
The long-term outlook for the paper industry remains favourable, driven by increasing literacy, growth in print media, higher government spending on education sector, changing urban lifestyles as well as economic growth, said Chepa.
She picked JK Paper and Star Paper from the sector, which she said can deliver double-digit gains over the next 6-12 months.
