Bilt Floats Up On Hike In Paper Prices

Shares of Ballarpur Industries Ltd (Bilt) registered gains today on sustained buying by institutions which are expecting a better topline growth for the company in this quarter. This follows the recent hike in paper prices.

The stock of the largest paper manufacturing firm closed up by 14.07 per cent at Rs 53.90 on the Bombay Stock Exchange.

Analysts said the renewed interest in the stock was due to the recent hike in paper prices. There was a feeling that domestic paper prices may slip following cheaper imports, but analysts said, with the import duty for paper at 56.8 per cent (which has dipped from 62 per cent, following the cut in basic import duties to 30 per cent, from 35 per cent), the possibility of large-scale imports are remote.

 

Analysts said paper prices have risen by Rs 800 per tonne last month and are likely to increase further by 3 per cent in the coming month. Indian paper majors have increased prices of their products following the increase in demand