JK Paper, Emami Paper and Other Paper Stocks Rally Up to 15%: Reason Behind the Rally

On Monday, August 25, share prices of paper companies rallied strongly, with JK Paper Ltd., West Coast Paper Ltd., Orient Paper Ltd., and Ruchira Paper Ltd. surging between 6% and 15%. JK Paper and Emami Paper rose over 12% each, while West Coast Paper gained 13% and Orient Paper & Industries advanced nearly 8%. 

Why Are Paper Stocks Buzzing Today?

The rally in paper stocks was driven largely by the Directorate General of Foreign Trade (DGFT), under the Ministry of Commerce & Industry, has tightened import conditions for certain paper and paperboard products by amending the Import Policy under Chapter 48 of ITC HS, 2022.

The government has made compulsory registration under the Paper Import Monitoring System (PIMS) mandatory for specified HS codes and imposed a Minimum Import Price (MIP) of INR 67,220 per MT on Virgin Multi-layer Paper Board (VPB) imports till March 31, 2026. This means imports of VPB below this price will not be allowed, and shipments can only be made through compulsory registration under the Paper Import Monitoring System (PIMS).

For Indian paper companies, this is a positive as it reduces the threat of cheaper imports from overseas. Domestic producers can sell more at stable prices without facing low-cost competition, thereby supporting margins and boosting demand for local mills.

Beyond this policy support, the sector is also benefiting from stable raw material prices, which are helping sustain profitability. Demand for packaging paper is expected to rise ahead of the festive season, and the third and fourth quarters are typically strong for the industry. At the same time, capacity expansion by industry players is underway, positioning them well to capture rising demand.

Additionally, the government’s education reforms, including changes to the NCERT curriculum and new textbook requirements, are expected to lift demand for printing and writing paper.

Virgin Multi-layer Paper Board (VPB) is widely used in the packaging of pharmaceuticals, FMCG products, food & beverages, electronics, high-end cosmetics, liquor, as well as book covers and publishing, making this move a broad-based trigger for consumption growth in the paper industry.

Top Performing Paper Stocks 

The following are the top-gaining stocks from the paper industry on Monday:

JK Papers

On Monday, JK Papers share price surged over 15% after the government Minimum Import Price. The stock price has crossed above the 200-EMA today. Established in 1962, JK Paper is the leading player in Office papers, coated papers and Packaging boards. It is one of the most respected paper companies today.

West Coast Paper

West Coast Paper is currently trading at ₹539, gaining 11%, and has a market cap of ₹3,523 crore. Since 1955, the company has expanded to 26+ countries with a manufacturing capacity of 3,20,000 MTPA. The stock price is trading at 0.92 times its book value

Pudumjee Paper 

On Monday, Pudumjee Paper share price traded at ₹140.50, up 6%, with a market cap of ₹1,334 crore. The company operates in the Speciality Paper segment for Wrapping and Food Grade Packaging Paper, Household and Sanitary Paper, etc. The company is almost debt-free and has delivered a good profit growth of 27% CAGR over the last 5 years

Orient Paper & Industries

Orient Paper & Industries’ share price jumped over 5% upper circuit at, with a market cap of ₹621 crore. OPIL is a part of the $2.9-billion, diversified C K Birla Group. The stock price of the company is trading at 0.39 times its book value

Emami Paper

Emami Paper share price jumped over 12% at ₹108.50 per share, with a market capitalisation of ₹656 crore. The company has been maintaining a healthy dividend payout of 52.5%. Emami is engaged in the manufacturing & marketing of personal care & healthcare products with an enviable portfolio of household brand names such as BoroPlus, Navratna, Fair and Handsome, Zandu Balm, Kesh King, Zandu Pancharishta, Mentho Plus Balm and others.

Ruchira Papers

Ruchira Papers' share price surged over 5% on Monday, trading at 147.50, up 5.09%, with a market cap of ₹440 crore.  The stock price is trading near a 52-week high of ₹152.90. The stock is trading at 0.95 times its book value, and it is providing a good dividend yield of 3.32%. Also, the company has been maintaining a healthy dividend payout of 24.9%

Disclaimer: The article is for informational purposes only and not investment advice.