Paper Stocks Rally: JK Paper, Emami Paper Mills, and West Coast Paper Mills Share Price Jump Amid Import Price Move

Paper Stocks Rally: JK Paper, Emami Paper Mills, and West Coast Paper Mills Share Price Jump Amid Import Price Move

Market Performance

The stock market opened Monday, August 25, with a sharp rally in paper stocks. Investors turned their attention to counters like JK Paper, Emami Paper Mills, and West Coast Paper Mills, which witnessed double-digit intraday gains.

This sudden uptick was not random—it was triggered by a key policy shift from the government.

Why Are Paper Stocks Rising?

The sharp surge in paper stocks came after the central government announced a minimum import price (MIP) on Virgin Multi-layer Paper Board (VPB).

  • VPB is an essential material used in pharmaceutical, FMCG, electronics, cosmetics, liquor, and publishing packaging.
  • On August 22, the Directorate General of Foreign Trade (DGFT) issued a notification imposing a MIP of ₹67,220 per metric ton (CIF basis) on VPB imports.
  • This rule applies to imports under HS Codes 48059100, 48059200, 48059300, 48109200, and 48109900.
  • The new pricing safeguard will remain in effect till March 31, 2026.

With this move, the government aims to protect domestic paper manufacturers from cheap imports, creating a more stable demand-supply balance in the sector.

Company Details – Impact on Key Paper Stocks

JK Paper Share Price

JK Paper gained sharply in morning trade, supported by investor optimism around stronger pricing power and reduced import pressure in the domestic market.

Emami Paper Mills Share Price

Emami Paper Mills also jumped as traders factored in a more favorable market environment, especially in packaging and publishing segments.

West Coast Paper Mills Share Price

West Coast Paper Mills joined the rally, reflecting improved sentiment across the sector as import restrictions supported local manufacturers.

Other listed peers, including Tamil Nadu Newsprint & Papers, Andhra Paper, and Malu Paper Mills, followed the same trend, contributing to the overall uptrend in paper stocks.

Sector Outlook – What’s Driving Sentiment?

The rally is not just about the government’s move. Paper stocks have been showing strength for a while, and multiple factors are contributing:

  • Stable raw material prices in recent months.
  • Higher seasonal demand as the festive period approaches.
  • Improved realisations expected after a tough year for the writing & printing (W&P) paper segment.

Industry data suggests:

  • Revenues of W&P paper manufacturers may recover by 4–5% in FY26 after a 7% decline last year.
  • Realisations, which had dipped 12% last year, may rise 2–3%, thanks to better demand-supply balance and limited low-cost imports (currently around 18–20% of total volume).
  • Profit margins could benefit as hardwood prices ease, reducing pressure on pulp manufacturing.

Summary

The paper sector made headlines on August 25 with a sudden surge in stocks like JK Paper, Emami Paper Mills, and West Coast Paper Mills, some climbing up to 17% intraday.

The trigger was the government’s decision to impose a minimum import price of ₹67,220 per metric ton on Virgin Multi-layer Paper Board, effective till March 2026.

With stable raw material costs, rising demand, and supportive policy measures, the paper sector has entered a positive phase, driving optimism across the stock market.

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