India's paper stocks rise after ITC-Aditya Birla deal

Andhra Paper

01/04/2025 08:08

** India's paper companies rise; JK Paper JKPA.NS and West Coast Paper Mills WSTC.NS up 3% and 4%, respectively

** ITC ITC.NS acquires Aditya Birla Real Estate's AITE.NS paper and pulp business

** Higher deal valuation, positive industry outlook aiding paper stocks

** Nomura says deal valuation at 35 billion rupees ($409.23 million) is higher than its estimate of 20 billion rupees

** The deal valuation can act as benchmark for future consolidation in the industry, says Sunny Agrawal, head of fundamental equity research at SBICAPS Securities

** The paper business has been in cyclical downturn past two years, but an expected market recovery should improve key performance metrics - Motilal Oswal

** Andhra Paper ANDA.NS jumps 7% and Seshasayee Paper & Boards SSHA.NS up 2%

($1 = 85.5270 Indian rupees)

 (Reporting by Vivek Kumar M)

 ((VivekKumar.M@thomsonreuters.com;))