Shares to buy on Monday: Stock markets around the world are under pressure due to geopolitical tensions and rising inflation. However, despite the Russo-Ukraine war and commodity prices hitting several-month highs, paper stocks in India have given great returns in the past one month. In the past one month, the share price of West Coast Paper Mills has risen nearly 25 per cent, shares of JK Paper have gained over 30 per cent, Orient Paper & Industries has gained over 14 per cent. There has been an increase, the shares of Ruchira Papers have risen by about 15.50 per cent. Pudumji’s share price climbed close to 16.50 per cent.
According to stock market experts, paper mills have been least affected by recent global factors like Ukraine-Russia WarCrude oil prices and other commodity prices are climbing to their multi-month highs. In fact, the unlock theme has increased the demand for papers as schools and other educational institutions are now reopening. Pulp and waste paper prices have risen recently in international markets which may give margin advantage to paper mills in the coming quarters. He advised positional investors to add paper stocks like Orient Paper, West Coast Paper, JK Paper and Andhra Paper with a time horizon of 3-6 months.
Speaking on the reasons that are fueling the rally of paper stocks; Avinash Gorakshakar. Head of Research at Profitmart Securities said, “The reason for the rise in paper stocks can be attributed to the bulls moving towards these stocks over the past one month as these companies are least affected by geopolitical tensions and rising inflation. In fact , they use pulp and waste paper, whose prices have increased in the recent times. Hence, the market is expecting margin gains to paper mills on the increase in these raw materials as they have a huge sale of pulp and waste papers. The list is gone. Also the unlock theme is working in favor as the demand for paper mills to reopen schools and other educational institutions as the paper has moved north.”
Paper Stocks to Buy in the Mid Term
Avinash Gorakshakar of Profitmart Securities said that such developments are expected to benefit paper mills in the next one to two quarters and hence one can add paper stocks to their portfolio for the next 3-6 months. He added that quality paper stocks like Orient Paper and West Coast Paper can be a good option for positional investors as these stocks are available at discounted prices these days.
shares to buy for short term
Which paper stocks to buy today; Anuj Gupta, Vice President, IIFL Securities said, “One can buy JK Paper shares at the current market price for a short term target. 335 each level holds the stop loss 290 per share level. Those interested in Orient Paper stocks can start buying momentum on CMP for a short term target of Rs. maintain stop loss at 40 27. Similarly, Andhra Paper stock at current market price of . can be bought for the short-term goal of maintain stop loss at 320 255 each level.”
Disclaimer: The views and recommendations given above are those of individual analysts or broking companies and not of Mint.
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