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Multibagger IPO: Paper stock wins export order amid industry buoyancy

The prospects of the paper industry are closely tied to various economic indicators. According to the International Project Management Association (IPMA), paper consumption in India is projected to reach 30 million tons by 2027.

Edited By: Nitin Kumar @Niitz1 New Delhi Published on: October 10, 2023 7:33 IST
BSE
Image Source : PEXELS Paper production in a mill

Amid a rise in economic and export activities, the paper industry has turned out to be one of the largest sectors with respect to business and income. As major paper players continue to grab export orders and multibagger stock, IFL Enterprises has informed exchanges that it has secured fresh export orders. The latest export orders amount to a whopping Rs 73 crore, according to a BSE filing by the fast-growing operator in the paper industry.

This is in addition to the recent export orders of Rs 192 crore, which will further increase revenue and margins. Apart from this, the corporation has entered into a strategic Memorandum of Understanding (MoU) with Australia-based Charter Paper Pty Ltd, which specialises in paper products. 

Notably, the paper industry's fortune is linked to a number of economic indicators. According to the International Project Management Association (IPMA), paper consumption in India will likely reach 30 million tons by 2027.

There is growing demand for a variety of papers from sectors such as FMCG and retail for innovative packaging solutions as they reduce dependency on plastics. The paper industry is also likely to benefit from rising e-commerce shopping as well as ready-to-eat and packaged foods.

According to a PTI report, the paper industry's total volume for FY24 is expected to rise 5-7 per cent, similar to the last fiscal, and the operating margin will remain healthy at 18 to 19 per cent, ensuring a stable cash flow generation. The Indian paper industry had reported revenue growth of 30 per cent a year before in FY23.

A report by brokerage Nuvama said that in the financial years 2020–21 and 2021–22, the Indian paper industry has, for the first time post-independence, recorded a surplus trade, with exports being greater than imports.

IFL Enterprises is a multibagger SME IPO. It had launched its IPO in March 2017. After listing, the stock issued bonus shares twice and stock split once.

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