Best Paper Stocks in September 2024 Based on 5Y CAGR

The paper industry, with its rich historical roots, remains one of India’s most promising sectors. The history of paper-making in India stretches back to the early days of handcrafted manuscripts.

Today, India’s paper industry generates around 80,000 crore rupees in revenue annually. The country boasts approximately 850 paper mills that collectively produce about 25 million tonnes of paper each year. This production is projected to increase to around 35 million tonnes by the fiscal year 2030, driven by strong demand across various sectors. The growth of the paper industry not only contributes significantly to national revenue but also supports the economy and creates numerous job opportunities.  In this article, we will look at the best stocks in the paper sector in September 2024 based on 5Y CAGR.

Best Paper Stocks in September 2024 – Based on 5Y CAGR

Note: The stocks mentioned above have been selected from the Paper Products Sector with a market capitalisation of over ₹1,500 Crore and sorted based on 5Y CAGR

Overview of 5 Best Paper Stocks

• JK Papers Limited: Established in 1962, JK Paper is the leading player in Office papers, Coated papers and Packaging boards. As of Q4 FY2024, the capacity utilisation was 113.1% Vs 104.9% in the corresponding quarter.

Key Metrics:

• Return on Equity (ROE): 24.6%
• Return on Capital Employed (ROCE): 21.3%

• Century Textiles and Industries Ltd: Century Textiles and Industries Ltd transformed from a single-unit textile entity in 1987 into a commercial powerhouse with interests in diverse industries. Currently, the business house is a trendsetter in cotton textiles and also has a remarkable presence in the Pulp and Paper and Real Estate sectors. During Q1 FY25, Pulp & Paper contributed ~69% of revenue with an EBITDA of ₹65 crore

Key Metrics:

• ROE: 1.29%
• ROCE: 18.31%

• West Coast Paper Mills Ltd: West Coast Paper Mills Ltd is one of the oldest and largest producers of paper for printing, writing, and packaging in India. Established in 1955, the Mill is located at Dandeli in Uttara Kannada district in Karnataka. As of August 2024, the company recorded an installed Capacity of –3,20,000 Mtpa.

Key Metrics:

• ROE: 23.8%
• ROCE: 29.3%

• Seshasayee Paper & Boards  Ltd: Seshasayee Paper & Boards is engaged in the business of manufacture and sale of printing and writing paper. Revenue from Operations for FY24 was ₹1,801.56 crores, as against `₹2,082.53 crores in the previous year.

Key Metrics:

• ROE: 15.2%
• ROCE: 20.2%

• Andhra Paper Ltd: Andhra Paper is engaged in the business of manufacturing and sale of paper, pulp and paper & paper board. The company’s Rajahmundry unit is an integrated wood-based paper mill with a capacity to produce 1,82,400 MT of finished paper and 200,000 MT of bleached pulp annually.

Key Metrics:

• ROE: 19.1%
• ROCE: 24.7%

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.