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