The fall came a day after the company announced its March quarter results for FY24 (Q4FY24), along with stock-split and dividend announcement
A strong and robust domestic demand, coupled with strategic exports of both paper and converted paper products, augers well for the Indian paper industry
In the past one year, the stock price of the paper maker has more-than-doubled or zoomed 129 per cent, as against 10 per cent gain on the S&P BSE Sensex.
The shift in consumer preferences are driving demand for superior quality, eco-friendly packaging, JK Paper said.
In the past six months, the stock price of WCPM has more-than-doubled or soared 137 per cent, as against 3 per cent rise in the benchmark Sensex.
However, analysts say short-term investors should partially book out from paper stocks as the industry is a "classic cyclical play"
Paper stocks have rallied over 20 per cent in the recent past on hopes of higher demand as schools, offices reopen for normal functioning; charts indicate more upside.
Improving demand and likely consolidation in the industry are key triggers
Major paper stocks have managed to conquer their resistance levels and indicate a rising trend from a medium-term perspective
On June 26, 2020, Bright Star Investments purchased 500,000 equity shares, representing 1.26 per cent of the total equity of Andhra Paper, at a price of Rs 206.23 per share on the NSE via the bulk dea
Orient Paper, Emami Paper Mills, Star Paper Mills, Malu Paper Mills, Seshasayee Paper & Boards, International Paper APPM, JK Paper and Ruchira Papers from the paper sector were up more than 5%.
In September, paper stocks rallied by up to 84 per cent on expectation of ban on single-use plastic. In comparison, the S&P BSE Sensex had added 3.6 per cent during the period.
Company shares also got support from rising demand for the packaging variety in states like Maharashtra which had imposed a partial ban on use of plastics
Star Paper Mills, Ruchira Papers, Balkrishna Paper, TN Newsprint, N R Agarwal Industries, Seshasayee Paper and West Coast Paper were up in the range of 6% to 20% on the BSE