Best Paper Stocks in India February 2025 – 5Y CAGR Basis – JK Paper, West Coast Paper Mills & More

The packaging sector is currently the 5th largest in the Indian economy, playing a key role in driving industrial growth and innovation. A key component of this growth is the paper industry, which boasts a strong structural foundation, with over 900 paper units and an installed capacity nearing 4,990 thousand tons. India also houses 861 paper mills, with 526 units actively operating. In this article, check the best paper stocks in India in February 2025 based on 5yr CAGR and other parameters like market cap and net profit margin.

Best Paper Stocks in February 2025 – Based on 5Y CAGR

Note: The paper stocks list mentioned above is selected from the Paper Products Sector with a market capitalisation of over ₹1,500 crore and sorted based on 5yr CAGR. The details are as of February 3, 2025.

Overview of the Best Paper Stocks in February 2025

1. JK Paper Ltd

JK Paper is a popular player in office papers, coated papers, and packaging boards. For the 9M ended December 31, 2024, the company’s total income was ₹5,111.78 crore, compared to ₹5,110.33 crore during the same period in FY 2024. The company’s profit was ₹334.93 crore, compared to ₹854.50 crore in 9M ended December 31, 2023.

Key metrics:

• ROCE: 19.52%
• ROE: 23.67%

2. West Coast Paper Mills Ltd

West Coast Paper Mills Ltd is one of the oldest producers of paper for printing, writing, and packaging in India. In H1 FY 2025, the company’s revenue dropped 13% to ₹2,101 crore, compared to ₹2,403 crore in H1 FY 2024. In H1 FY 2025, the company’s profit was ₹222 crore, compared to ₹497 crore in H1 FY 2024, a drop of 55%.

Key metrics:

• ROCE: 25.30%
• ROE: 20.13%

3. Seshasayee Paper and Boards Ltd

Seshasayee Paper and Boards Ltd is engaged in the business of manufacturing and selling printing and writing paper. For the 9M ended December 31, 2024, the company’s total income was ₹1,302.44 crore, compared to ₹1,299.09 crore during the same period in FY 2024. The company’s profit was ₹82.10 crore, compared to ₹213.93 crore in 9M ended December 31, 2023.

Key metrics:

• ROCE: 17.28%
• ROE: 15.27%

4. Andhra Paper Ltd

Andhra Paper is engaged in the business of manufacturing and sale of paper, pulp and paper and paper board. In H1 FY 2025, the company’s revenue dropped 20% to ₹804 crore, compared to ₹1,003 crore in H1 FY 2024. In H1 FY 2025, the company’s profit was ₹69 crore, with a drop of 68% from ₹219 crore in H1 FY 2024.

Key metrics:

• ROCE: 22.64%
• ROE: 19.55%

Best Paper Stocks in February 2025 – Based on Market Cap

Note: The paper stocks list mentioned above is selected from the Paper Products Sector with a market capitalisation of over ₹1,000 crore and sorted based on market cap. The details are as of February 3, 2025.

Best Paper Stocks in February 2025 – Based on Net Profit Margin

Note: The paper stocks list mentioned above is selected from the Paper Products Sector with a market capitalisation of over ₹1,000 crore and sorted based on net profit margin. The details are as of February 3, 2025.

Pros of Investing in Paper Stocks

• Growing Demand: Increasing demand for sustainable packaging, driven by global environmental consciousness, can boost the paper industry.
• Diverse Applications: Paper is used across industries like packaging, education, FMCG, and e-commerce, ensuring steady demand.
• Government Support: Policies encouraging eco-friendly practices and bans on single-use plastics create opportunities for paper manufacturers.
• Recyclability Focus: Companies adopting recycled paper production align with ESG (Environmental, Social, and Governance) standards, attracting sustainable investors.

Risks of Investing in Paper Stocks

• Raw Material Volatility: Prices of key raw materials like wood pulp and wastepaper can fluctuate, impacting profitability.
• Environmental Regulations: Stringent policies related to emissions and resource consumption may increase compliance costs.
• High Competition: The sector faces competition from global players and alternatives like digital solutions.

Conclusion

Apart from the stocks listed above, there are several other paper sector stocks in India. Before investing in any company, know the company’s business, financial performance and future prospects.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.