Paper stocks in limelight due to China story : Satya’s Weblog
China has stopped few pulp factories near coal plants due to pollution. This has resulted in pulp price go up and also higher paper prices in international market. Pulp is the raw material for paper of any kind. So, local manufacturers who has in-house pulp and paper making capacity will benefit.
I had discussed West Coast Papers and Ruchira Papers here. The post is published in Oct, 2016.
I choose Ruchira Papers at Rs 114.35 and West Coast Paper at Rs 126 for few months.
CMP of West Coast Paper: Rs 291. It reached to Rs 315 at high.
CMP of Ruchira Papers: Rs 198.8. It was at Rs 206 at high.
So, both has given superb gain.
Recently, in Sept, 2017, I have talked about Paper industry (Paper sector of India: few points) in general here. That time, China story was not there.
Here are few links which talk of China story:
Support from China Story and Lower valuations of Paper Stocks can rerate all Paper stocks here. Many has reduced its debt over past few quarters. We can think of better days ahead for Paper Stocks. But do your own research before investing.
Information about many paper companies and information about paper industry is also present.