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Tracing the paper trail: Multibagger paper stocks hinge on demand, prices and the demise of plastic

Tracing the paper trail: Multibagger paper stocks hinge on demand, prices and the demise of plastic
Tracing the paper trail: Multibagger paper stocks hinge on demand, prices and the demise of plastic
The paper industry is expecting a big leap in growth from 18.5 million tonnes per annum in 2019 to 30 million tonnes by 2027. Credit: Illustration by Muhabit ul haq via AI.

Synopsis

Most listed stocks in the segment such as West Coast Paper, Andhra Paper, JK Paper, Seshasayee Paper and Boards, Orient Paper and Pudumjee Paper — all have posted multibagger returns in the last three years. What next for India’s paper producers? Will the stocks’ rally continue?

What is the obvious alternative if you opt to replace all the plastic from your daily life? It has to be the humble paper, until humankind invents something else. But the replacement of plastic is just one big driver of demand for paper. There are other new avenues opening up for this industry which was taken for dead during the pandemic years. Not many of us have forgotten the time when people stopped their early morning newspapers because of
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The Economic Times