Paper, jute product stocks extend rally amid single-use plastic ban buzz

Shares of paper manufacturers and jute product companies extended their gains and were trading higher by up to 10 per cent on the BSE in the early morning deals on Thursday on buzz around total plastic ban.

Malu Paper Mills, Ludlow Jute & Specialities, Orient Paper & Industries, Emami Paper Mills, West Coast Paper, Star Paper Mills, JK Paper, Seshasayee Paper & Boards and Cheviot Company were up in the range of 4 per cent to 10 per cent on the BSE. In comparison, the S&P BSE Sensex was down 0.63 per cent at 36,333 points at 10:04 am.

Of these, Ludlow Jute & Specialities, Star Paper Mills, Orient Paper & Industries and Ruchira Papers have seen their market value appreciate in the range of 50 to 150 per cent from their respective August lows.

Ludlow Jute & Specialities hit a 52-week high of Rs 104, up 9 per cent during the session. The stock zoomed 160 per cent from its August low of Rs 40 hit on August 5 on the BSE. Star Paper Mills rallied 7 per cent to Rs 147 today, surging 99 per cent from previous month level of Rs 74.

India is likely to impose a nationwide ban on plastic bags, cups, small bottles, straws and some types of sachets next month as part of Prime Minister Narendra Modi's efforts to curb pollution.

The management of Ludlow Jute & Specialities said jute-based consumer products are gaining increasing acceptance. With the increasing aversion to plastic bags owing to pollution threats, increased usage of jute products can be expected.

“Good agricultural production in India (almost 20 per cent higher than last year) is expected to further boost demand for jute products in the medium term. With increased focus on increased farmer income and assurance of a remunerative Minimum Support Price (MSP), demand for packaging products would sustain,” the company had said in its 2018-19 annual report.

According to a Reuters report, Prime Minister Narendra Modi, who is leading efforts to scrap such plastics by 2022, is set to launch the campaign with a ban on as many as six items on October 2, the birth anniversary of independence leader Mahatma Gandhi.

In his Independence Day speech on August 15, PM Modi had urged people and government agencies to "take the first big step" on October 2 towards freeing India of single-use plastic. 

Company LTP 1-Year Low Price 1-Year Low Price Date % chg
Ludlow Jute 103.30 40.20 05/08/2019 157.0
Star Paper Mills 144.00 74.00 07/08/2019 94.6
Genus Paper & Bo 6.74 3.66 22/07/2019 84.2
N R Agarwal Inds 265.80 150.10 22/07/2019 77.1
Orient Paper 31.55 19.00 23/08/2019 66.1
Yash Papers 56.00 34.05 26/08/2019 64.5
Pudumjee Paper 17.10 10.40 25/07/2019 64.4
Emami Paper 96.90 61.55 23/07/2019 57.4
Ruchira Papers 102.50 65.25 23/08/2019 57.1
Cheviot Company 767.50 519.00 01/08/2019 47.9
JK Paper 135.10 93.10 23/08/2019 45.1
Shree Rama News. 18.50 12.80 23/08/2019 44.5
Astron Paper 113.20 78.55 01/08/2019 44.1
Kuantum Papers 470.00 330.30 29/07/2019 42.3
Shreyans Inds. 139.50 98.90 06/08/2019 41.1
Seshasayee Paper 214.75 160.01 06/08/2019 34.2
T N Newsprint 198.00 151.30 05/08/2019 30.9
West Coast Paper 270.25 209.85 05/08/2019 28.8
S I Paper Mills 84.00 67.45 01/08/2019 24.5
Gloster Ltd 680.00 555.05 23/08/2019 22.5
         
LTP : Last traded price on BSE in Rs at 09:47 am