Indian Paper Companies: Are they worth buying now?


Paper stocks have suddenly come into focus after a lackluster performance for many years. A recent listing(end of 2017) of the company ‘Astron Paper’ saw a mega debut with a listing premium of 130% [2].

The situation of these companies was pretty bad just 5 years back. The table gives a brief highlight into the debt-ridden scenario of many top performing paper companies[4].

Debt Ridden Paper Companies

Table 1. Heavily leveraged  paper companies in 2013[4]

What is the reason behind the sudden reversal of fortune?


  • Higher Capacity Utilization of the manufacturing plants due to boom in e-commerce industry[7]
  • Ban on low-grade waste paper import in China under pollution control norms(September 2017)[5][6][7]
  • Increase in price of end-product in accordance with raw material(wood-pulp) price rise[7][8]

Listed Players


Top 10 Listed Paper Companies_2018

Table 2. Top 10 listed Paper Companies in 2018[3]

Selection Criteria

There are a few things to check in any paper company before making your investments[4].

  • Does it have its own power supply? If not, does it have a Purchase Power Agreement(PPA)
  • Raw material used for manufacturing  the paper
  • Labor Costs
  • Debt-Equity Ratio
  • Operating Margin
  • Product Portfolio


Paper Industry has a bright future as the companies will make good of the lost opportunity from 2013-2015 in the coming years. Considering this, paper stocks have rallied ~20% post the reasons listed above.

Subsequently, many companies will possibly be re-rated which can reduce their borrowing cost and help them create value for their long-term investors.

Kindly understand the company’s business and wait for a meaningful correction, if you really want to make an investment.

Further Reading




5 thoughts on “Indian Paper Companies: Are they worth buying now?

Add yours

  1. Photo Auto Liker, Status Liker, Auto Liker, Autoliker, auto liker, Working Auto Liker, Autolike, Photo Liker, Autolike International, autolike, Status Auto Liker, auto like, Increase Likes, ZFN Liker, Autoliker, autoliker, Auto Like

  2. I have realized that online degree is getting preferred because obtaining your college degree online has turned into a popular option for many people. A lot of people have certainly not had an opportunity to attend a normal college or university but seek the elevated earning possibilities and a better job that a Bachelors Degree gives. Still other individuals might have a diploma in one training but would want to pursue another thing they now have an interest in.

  3. Another thing is that when looking for a good online electronics retail outlet, look for web stores that are continuously updated, maintaining up-to-date with the hottest products, the perfect deals, along with helpful information on product or service. This will ensure that you are handling a shop that really stays on top of the competition and give you what you should need to make intelligent, well-informed electronics purchases. Thanks for the crucial tips I’ve learned through your blog.

Leave a Reply

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Blog at

Up ↑

%d bloggers like this: