Investors may find value in select paper makers as cyclical lows meet firm cash flows and generous payouts, offering income while waiting for demand and pricing to normalise. For the industry, steady dividends signal discipline amid import pressure and input volatility, with recovery hinging on capacity upgrades and policy support.
1. JK Paper
Leading Indian company that produces high-quality paper and packaging products. It focuses on eco-friendly practices and offers a wide range of office and printing papers. The company is known for its innovation and strong presence in the Indian market.
With a market capitalisation of Rs. X crores, it fell to Rs. X, hitting a low of up to X percent from its previous closing price of Rs. X. The stock’s PE is at 19.40
Revenue for Q1FY26 was Rs. 1,674 crore, down 2.33% YoY vs Rs. 1,714 crore in Q1FY25 and down 0.95% QoQ vs Rs. 1,690 crore in Q4FY25, indicating a mild sequential dip alongside a modest annual decline. Over longer horizons, 3-year sales CAGR stands at 19%, while ROE 3-year CAGR is 20%, and dividend yield is 1.23%, signalling sustained growth and shareholder returns despite the recent quarterly softness.
Profit for Q1FY26 was Rs. 85 crore, declining 39.72% YoY from Rs. 141 crore but improving 10.39% QoQ from Rs. 77 crore, showing sequential recovery amid annual pressure. On a multi-year basis, 3-year profit CAGR is −11%, showing profitability headwinds relative to revenue growth, which may reflect margin compression or cost pressures over the period.
2. West Coast Paper Mills
A well-established Indian firm specialising in paper and pulp production. It creates diverse products like writing, printing, and packaging papers for various industries. The company emphasises sustainability and quality in its operations.
With a market capitalisation of Rs. X crores, it fell to Rs. X, hitting a low of up to X percent from its previous closing price of Rs. X. The stock’s PE is at 13.50
Revenue was 955 crore in Q1FY26, a-0.52% YoY decline versus 960 crore in Q1FY25 and 8.26% QoQ versus 1,041 crore in Q4FY25, indicating softer sequential performance despite a relatively flat annual comparison. Three-year sales CAGR stands at 6%, suggesting moderate medium-term growth even as the latest quarter saw a sequential pullback.
Profit was 60 crore in Q1FY26, down -50.82% YoY versus 122 crore in Q1FY25 but up 30.43% QoQ versus 46 crore in Q4FY25, reflecting a rebound sequentially but a sharp annual decline. Three-year profit CAGR is 1%, ROE 3Y CAGR is 23%, and dividend yield is 0.96%, pointing to modest profit compounding, improving returns, and a small income component for shareholders.
3. Seshasayee Paper and Boards
A prominent Indian manufacturer of paper and paperboards. It serves industries with products like printing, writing, and speciality papers. The company is recognised for its commitment to quality and environmental responsibility.
With a market capitalisation of Rs. X crores, it fell to Rs. X, hitting a low of up to X percent from its previous closing price of Rs. X. The stock’s PE is at 19.10
In Q1FY26, the company reported revenue of Rs. 385 crore, reflecting a decline of 8.77% year-over-year (YoY) from Rs. 422 crore in Q1FY25 and a quarter-over-quarter (QoQ) drop of 23.31% from Rs. 502 crore in Q4FY25. Despite this revenue dip, the 3-year compound annual growth rate (CAGR) in sales remains healthy at 9%. Profit for Q1FY26 was Rs. 15 crore, down 59.46% YoY from Rs. 37 crore and 44.44% QoQ from Rs. 27 crore in Q4FY25, indicating pressure on profitability.
Over the past three years, the company’s profit CAGR has been flat at 0%, while return on equity (ROE) has improved significantly with a three-year CAGR of 15%, demonstrating better capital efficiency. Additionally, the company offers a modest dividend yield of 0.93%, reflecting some shareholder returns despite the recent profit slowdown.
Written By Fazal Ul Vahab C H
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