One can classify paper industry on type of raw material used,
- companies that use major raw material as wood
- companies that use major raw material as waste paper
- companies that use major raw material as agriculture waste
yes paper realisations are high presently.
companies like JK which use wood as major raw material are benefitting the high realisations and cheap raw material at the same time so they are enjoying high profit margins currently.
Companies like Satia which uses agri waste as raw material are facing headwinds at the moment due to price inflation, central banks around the world including India are trying their best to bring down inflation, prices of many commodities are already coming down, so as and when their raw material cost comes down which will happen one day (I think in 3-4 Qtrs ) their profits will increase significantly, and so will the price.
“Big money is not in buying or selling, its in the waiting” ~ Charles T Munger
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