Best Paper Stocks in India (2025)

The paper industry in India is currently valued at around ₹80,000 cr. and produces over 25 million tonnes of paper annually. It has experienced notable growth in the first six months of the current financial year. Looking ahead, estimates suggest that by the 2029-30 fiscal year, the industry’s contribution to the GDP will reach 1.32 lakh crores. So if you’re looking for paper stocks to buy, considering the growth potential of the paper industry in India, you’re in the right place. In this blog, we have listed the top paper stocks in India, along with their benefits and risks catering to investing in paper stock companies.

List of Best Paper Stocks in India

Disclaimer: Please note that the above table is for educational purposes only, and is not recommendatory. Please do your own research or consult your financial advisor before investing. The data is derived from Tickertape Stock Screener and is subject to real-time updates.

Note: The data in this list of top 10 paper stocks is dynamic and subject to real-time changes. This data is derived from Tickertape Stock Screener, using the following parameters:

Filters:

• Sector: Paper Products
• 5Y CAGR
• Return on Equity: Set to High (Sorted from highest to lowest)

🚀 Pro Tip: You can use Tickertape’s Stocks Screener to research and evaluate stocks with over 200+ filters and parameters.

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Top Paper Manufacturing Companies in India- An Overview

Here is a brief overview of the top paper stocks in India – 

Kay Power and Paper Ltd

Kay Power and Paper Ltd operates in the paper manufacturing sector, focusing on producing a range of paper products. The company leverages sustainable practices and innovation to cater to the growing demand in the industry.

As of 31st December 2024, the company has a market capitalisation of Rs. 84.30 cr., with a closing price of Rs. 36.89. Its price-to-earnings (PE) ratio is 56.20, and it has achieved a 5-year compound annual growth rate (CAGR) of 83.98%. The return on equity (ROE) stands at an impressive 55.25%.

Shreyans Industries Ltd

Shreyans Industries Ltd is engaged in the manufacturing of writing and printing paper. The company is known for its strong operational efficiency and a focus on eco-friendly production processes.

As of 31st December 2024, Shreyans Industries has a market capitalisation of Rs. 326.44 cr., with a closing price of Rs. 229.22. The PE ratio is 3.73, and the 5-year CAGR is 15.53%. The ROE for the company is 25.53%.

JK Paper Ltd

JK Paper Ltd is a leading player in the paper and packaging board industry. It is recognised for its diverse product portfolio and significant market share in the Indian paper sector.

As of 31st December 2024, the company has a market capitalisation of Rs. 6,853.17 cr. and a closing price of Rs. 414.80. The PE ratio is 6.11, while the 5-year CAGR is 27.28%. The ROE is 23.67%.

Pudumjee Paper Products Ltd

Pudumjee Paper Products Ltd specialises in producing various types of speciality paper. The company is a key supplier for industries requiring high-quality paper products with customised specifications.

As of 31st December 2024, Pudumjee Paper Products has a market capitalisation of Rs. 1,787.34 cr., with a closing price of Rs. 179.04. Its PE ratio is 18.21, and the 5-year CAGR is 65.09%. The ROE stands at 22.07%.

Prabhhans Industries Ltd

Prabhhans Industries Ltd is involved in the paper and pulp sector, focusing on innovative manufacturing techniques to produce high-grade paper products.

As of 31st December 2024, the company’s market capitalisation is Rs. 53.30 cr., with a closing price of Rs. 87.00. It has a PE ratio of 38.90, a 5-year CAGR of 47.41%, and an ROE of 20.39%.

West Coast Paper Mills Ltd

West Coast Paper Mills Ltd is one of the oldest and most prominent paper manufacturers in India, offering a wide range of writing, printing, and industrial papers.

As of 31st December 2024, the company has a market capitalisation of Rs. 3,573.58 cr., with a closing price of Rs. 541.05. The PE ratio is 5.16, and the 5-year CAGR is 19.90%. The ROE is 20.13%.

Andhra Paper Ltd

Andhra Paper Ltd is a major player in the Indian paper industry, producing high-quality paper and pulp products. The company emphasises sustainable practices and operational excellence.

As of 31st December 2024, Andhra Paper has a market capitalisation of Rs. 1,858.26 cr., with a closing price of Rs. 94.50. Its PE ratio is 5.47, the 5-year CAGR is 10.47%, and the ROE is 19.55%.

Pakka Limited

Pakka Limited, formerly known as Yash Papers, is a prominent player in the sustainable packaging solutions space. It specialises in producing eco-friendly paper and packaging products.

As of 31st December 2024, the company has a market capitalisation of Rs. 1,389.86 cr., with a closing price of Rs. 311.00. The PE ratio is 32.02, the 5-year CAGR is 49.21%, and the ROE is 18.99%.

N R Agarwal Industries Ltd

N R Agarwal Industries Ltd is a well-established paper manufacturing company producing quality paper for industrial and commercial use. The company focuses on adopting advanced technologies to enhance its production capabilities.

As of 31st December 2024, the company has a market capitalisation of Rs. 613.03 cr., with a closing price of Rs. 350.65. The PE ratio is 4.89, the 5-year CAGR is 11.08%, and the ROE is 17.98%.

Kuantum Papers Ltd

Kuantum Papers Ltd is a leading manufacturer of paper products, offering a wide range of writing and printing paper solutions. The company is known for its focus on sustainability and the utilisation of eco-friendly processes in its operations.

As of 31st December 2024, Kuantum Papers Ltd has a market capitalisation of Rs. 1,089.75 cr., with a closing price of Rs. 123.72. The PE ratio is 5.93, and the 5-year CAGR is 21.15%. The ROE for the company stands at 17.34%.

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How to Invest in Paper Stocks?

Paper trading offers a valuable method to learn trading across diverse assets like stocks and bonds. It provides a platform for investors to experiment and grasp real-world paper stock market dynamics. Here are steps to start paper trading:

1. Allocate a certain sum of money as your initial investment margin, based on your risk tolerance and financial goals.
2. List the stocks you plan to invest in; it’s advisable to select multiple options.
3. Note the current stock prices beside each selected stock.
4. Distribute your total investment across your chosen stocks.
5. Deduct nominal fees charged by brokerage accounts for both purchases and sales.
6. Adjust the per-investment amount to match actual paper company share prices.
7. Monitor your investments daily by checking closing stock prices to evaluate their performance.

What are Paper Stocks?

Paper stocks refer to stocks or shares of companies that are primarily engaged in the paper industry in India. These companies are involved in the production, manufacturing, and distribution of various paper-based products such as printing paper, packaging materials, writing instruments, and more. 

However, the paper industry in India is much more than a white sheet of paper. It includes – 

• Tissue paper 
• Filter paper 
• Light-weight online coated paper 
• Medical-grade coated paper 
• Cardboard boxes used for packaging
• Packaging and paperboards

An Overview of the Paper Industry in India

In India, the paper sector has a rich history, dating back to the 1950s. However, it was in 1991 that a true revolution took place. In July of that year, the Indian government made a pivotal decision to de-license the paper sector, leading to a remarkable turnaround.

The Indian paper industry in India has made remarkable strides over the years. Between 1950-51 and 1960-61, it witnessed an impressive growth rate of 12% while the share prices of paper products also increased. Subsequently, the industry has maintained a steady growth of approximately 7%-8%. However, certain segments faced considerable challenges.

The newsprint segment, in particular, experienced a significant setback as consumers shifted to online news apps, resulting in a complete shutdown. Similarly, the paperboard segment encountered a growth decline of 4-7% in FY 2020-21.

Features of Paper Sector Stocks in India

Here are the features of paper industry stocks in India:

• Large Industry Size: The Indian paper industry, one of the largest paper industries in India, is estimated to be around ₹80,000 crore in size, with a total paper production of more than 25 million tonnes per annum.
• Diverse Product Portfolio: The industry produces a wide range of products, including printing and writing paper, packaging materials, tissue paper, newsprint, and speciality papers. Top 10 paper manufacturing companies in India often lead this diverse segment.
• Domestic Market Driven: The paper company in India primarily caters to the domestic market, with only around 7-8% of total production being exported.
• Employment Generation: The paper industries in India provide direct employment to about 0.5 million people and indirect employment to around 1.5 million people.
• Sustainability Focus: The industry association (IPPTA) has urged paper making companies in India to adopt sustainable growth strategies, including shifting to renewable energy sources, improving energy efficiency, and investing in R&D.

Advantages of Investing in Paper Stocks

There are certain advantages of investing in paper stocks India, such as:

• High Export Value: India’s exports of paper and paperboard products were valued at approximately $3.04 billion, showcasing why paper stocks are rising in global markets.
• Industry Growth: The substantial growth in exports has notably contributed to the nation’s economic expansion.
• Sector Trends: A majority of new projects in the paper industries are concentrated in the Packaging Grade Sector. These projects predominantly utilise Recycled Fibre, enhancing the value of paper mill company shares.
• Contribution of Non-Wood Sectors: Non-wood sectors contribute 70% to the total paper and board production in the industry, making these sectors pivotal for top 10 paper mills in India.
• Market Dynamics: Increased Mergers & Acquisitions transactions within the Indian paper industry signal a growing interest from institutional investors in paper company stocks in India.

How to Identify the Best Paper Stock to Invest?

To identify the best paper stock in India, conduct due diligence:

• Understand the company’s fundamentals: Analyse financial metrics of paper stocks list NSE, such as price-to-earnings ratio, debt-to-equity ratio, and return on equity, to assess profitability and growth potential.
• Evaluate the company’s products, services, and business model: Examine the relevance of products from top paper companies in India in the competitive landscape.
• Assess the company’s management and future outlook: Strong management is crucial for long-term value, especially for the best paper company in India.
• Consider debt levels and non-performing assets: Avoid paper company stocks with high outstanding debt, as these can indicate financial instability.

Risks Associated with Investing in Paper Stocks in India

While exploring paper company share lists, consider these risks:

• Industry Outlook: A strong industry outlook can lead to higher demand for paper products, benefitting paper stocks India.
• Company Fundamentals: Companies in the paper stock list with strong financials and earnings growth are better investment options.
• Valuation: Ensure that paper company stocks in India are trading at attractive valuations relative to other investments.
• Risk Factors: The paper industry in India is cyclical, and performance can fluctuate with the overall economy. Companies face competition from other materials and risks from technological advancements.

Who Should Invest in Paper Sector Stocks?

Investing in paper stocks comes with a challenge and is suitable for investors with certain risk appetites such as:

• Sustainability Investor: The paper industry in India is increasingly moving towards sustainable practices, making it an attractive option for investors looking to make environmentally conscious investments.
• Growth-Oriented Investor: India’s growing education sector and expanding consumer market can lead to increased demand for paper products, from textbooks to packaging, suggesting potential growth in paper stocks.
• Dividend Seeker: Some well-established paper companies in India are known for consistent dividend payouts, making them appealing to those seeking regular income from their investments.

Factors to Consider Before Investing in Paper Stocks

Before investing in paper stocks, evaluate the following factors:

• Cost: Managing the cost of paper manufacturing poses a significant challenge for many paper manufacturers in India. Some struggle to strike a balance between cost, quality, efficiency, and sustainability. Therefore, it is advisable to invest in companies in the paper industry that prioritise enhancing efficiency and reducing waste to drive profitability.
• Raw Materials: It is essential to closely monitor the prices of raw materials like wood pulp and energy when evaluating investments in paper stocks. Understanding how fluctuations in these prices can impact the industry’s profitability is crucial for making well-informed investment decisions.
• Innovation: Ensure that the company you are considering for investment continually updates its technology to remain competitive. For instance, numerous paper brands in India are adopting new eco-friendly packaging materials that decompose naturally, showcasing a commitment to innovation.
• Financial Health: Assess the financial performance of each Indian paper company in the share list before investing. Analyse their historical performance, revenue growth, cash flow statements, and profit margins to gauge their financial stability and potential for growth.
• Supply Chain Disruptions: Before purchasing paper stocks, factor in potential supply chain disruptions. The Indian paper industry heavily relies on international shipping routes for raw materials. Any disruptions, such as a shortage of shipping containers, can significantly impact the supply chain and, consequently, the company’s operations.

To Wrap It Up…

The long-term outlook for the Indian paper industry points towards a promising future. Factors such as the packaging industry’s growth, increasing literacy rates, and the expanding print media sector are expected to drive the demand for paper products. Furthermore, the paper industry in India and associated paper stocks are likely to benefit from government investments in the education sector and evolving urban lifestyles. However, it’s important to acknowledge the cyclical nature of the industry while looking for paper stocks to buy, which may lead to occasional periods of fluctuation.

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Stocks Under Budget

If you are looking for stocks under a particular price range, here’s the collection of stocks under a specifc budget:

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