Paper stocks are also seen being bought by the Funds & HNIs (with Cement sector covered here last week) for the last 1 week or so, due to pent up demand seen, with normalcy seen returning back, with work place, offices, school, college and hotels now seen having opened, pan India. Even Q2 numbers seen from about half a dozen paper stocks, with management guidance thereto, are seen indicating revival of the sector, with sustainable demand being seen from here.

Virtually all the paper stocks, whether manufacturers of Tissue paper, Writing & Printing, Craft , Board, are seen ruling at historical low end of the valuation range. On PBV many stocks are ruling at 0.5x or so, with PE multiple of 6x to 8x, thus seen having good traction potential in share price, due to ramp in earnings and margins to be seen in H2.

Only buying criteria is to pick up companies having good track record, backed by the promoters, of lower EV per tonne. There are about 25-30 listed Paper stocks, but advised to pick maximum 2 or 3 stocks, based on the theme as stated above.

We have already recommended such 2-3 stocks to our members, where stocks are now seen in ACCUMULATION.

This is not a Buy or Sell recommendation, while stock recommendations are provided exclusively to our paid members in the Member Zone.