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The government of India has imposed a minimum import price (MIP) of ₹67,220 per metric ton on virgin multi-layer paper board (VPB) imports. The MIP includes the cost of the paper, insurance, and shipping charges to India, and will be in effect until 31 March 2026.

The government introduced the MIP last week after an investigation found evidence that VPB imports from Indonesia were being sold in India at unfairly low prices, harming domestic manufacturers. The Directorate General of Trade Remedies (DGTR) confirmed the dumping margin and initiated anti-dumping proceedings, leading to this protective measure.

These two paper stocks are likely to benefit from the order, having already shot up 13-14% on Tuesday.

JK Paper is a leading Indian manufacturer of sustainable paper solutions, specialising in office papers, coated papers, writing and printing papers, and high-end packaging boards.

The company operates three integrated pulp and paper mills located in Rayagada (Odisha), Songadh (Gujarat), and Kagaznagar (Telangana), with an installed capacity of about 761,000 tons per annum. It has a global presence, exporting to over 60 countries and regions including the US, the Middle East, Europe, Southeast Asia, and Africa.

In Q1FY26 the company reported net sales of ₹1,674.2 crore against ₹1,713.7 crore in the corresponding period last year. Net profit was ₹85.4 crore in Q1, down 39% from ₹140.8 crore a year earlier.

The company said it would continue to focus on leadership in its established product lines while continuing with new eco-friendly, biodegradable products such as aqueous barrier coated boards, carry bags and paper straws.

However, JK Paper does face industry headwinds in the form of a steep increase in wood costs and lower sales realisation owing to cheap imports.

JK Paper shares have surged from ₹356 to ₹401 in the past five days. The stock is up about 7% over the past month but down about 16% over the past year. It hit a 52-week high of ₹523.05 on 11 October 2024 and a 52-week low of ₹276 on 3 March 2025.

Emami Paper Mills is the largest manufacturer of newsprint in India and a leading producer of high-quality writing and printing papers as well as multi-layer coated packaging boards.

The company operates a modern, integrated plant in Balasore, Odisha with an annual production capacity of 340,000 tons, supported by a 33.5 mw captive power plant.

It reported net sales of ₹459.8 crore for Q1FY26, down from ₹503.7 crore a year earlier. Net profit came in at ₹6.3 crore, down more than 50% from ₹12.8 crore in the corresponding period last year.

The company launched Project Bulandi to optimise costs, accelerate a cultural change and enhance operational efficiency. It is looking to deepen its presence across niche and value-added products that generate superior realisations. It is adopting advanced technology and high-quality standards, while also emphasising sustainability through use of recycled fibers and captive power generation for energy self-sufficiency.

In the past five days,Emami Paper Mills shares have shot up from ₹94 to ₹115. The stock it up about 15% over the past month but down 13% over the past year. It touched its 52-week high of ₹140 on 28 August 2024 and its 52-week low of ₹78 on 7 April 2025.

The government’s MIP aims to regulate imports, ensure fair trade, and protect domestic VPB manufacturers by curbing the influx of cheap, disruptive imports. Investors have welcomed the decision, which comes at a time when the paper industry is struggling with subdued demand and higher input costs.

Remember, no investment is a sure shot. Investors should evaluate a company’s fundamentals, corporate governance, and stock valuation before deciding whether to invest in it.

Happy investing!

Disclaimer: This article is for information purposes only. It is not a stock recommendation and should not be treated as such.

This article is syndicated from Equitymaster.com

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