Top 5 Stocks (shares) To Benefit From Plastic Ban In India

Table of Contents

• What is single-use plastic and why it is banned in India?
• Top 5 Stocks (shares) To Benefit From Plastic Ban In India

After Prime Minister Narendra Modi announced freedom for India from SUP in his 2019 Independence Day speech, the MoEF&CC had brought in an amendment to the Plastic Waste Management (PWB) Rules in August 2021 that prohibited the manufacture, import, stocking, distribution, sale & use of Single use plastic from July 1, 2022.

So, if there are any changes in the industry there are always some companies who benefit from it and some who suffer, and if the companies get an advantage the shares or stocks of the companies also boom and vice versa

In this article, we will talk about the top 5 stocks (shares) to benefit from the plastic ban in India

Before that let us know,

What is single-use plastic and why it is banned in India?

Single-use plastic is that kind of plastic that can’t be recycled once it is produced and is also not decomposed in the soil for thousands of years and keeps creating soil pollution, water pollution, as well as air pollution

So in this regard, to protect the environment from such hazardous plastics government has announced the ban.

These items include plastic sticks that are used in earbuds, balloons, candy, and ice cream; cutlery items such as plates, cups, glasses, forks, spoons, knives, and trays; packaging/wrapping films such as that used for the sweet boxes, invitation cards, cigarette packets, and other items such as plastic flags, PVC banners of less than 100 microns, polystyrene for decoration.

Top 5 Stocks (shares) To Benefit From Plastic Ban In India

1. JK paper Limited: JK Paper Limited is a paper manufacturing company. The Company offers products in various categories, including coated papers and packaging boards, such as official documentation, uncoated paper and board, and coated paper and board.

JK paper is a well-established paper manufacturing company, after the plastic ban paper will be considered as an alternative that will ultimately boost JK paper’s financials

The company has a utilization capacity of 80% and 90% in the new Odisha plant and Sirpur plant, respectively, and the excess capacity will help fill any demand increase.

JK paper is on the top of the list of Top 5 Stocks (shares) To Benefit From Plastic Ban In India due to its establishment and financials

Last 1 year returns: 57.72% , P.E: 9.61 ( at an attractive valuation ), current share price: Rs 302.55

2. West coast paper mills limited: The West Coast Paper Mills Ltd. offers paper and paperboard, and optical fiber cables. 

Its products include printing and writing paper along with stationery products. It also produces packaging paper required by many industries. The company will hugely benefit from the ban on single-use plastics as 95% of the company’s revenue comes from the paper and paper board division 

Last 1 year returns: 32.74%, P.E: 7.06 ( at an attractive valuation ), current share price: Rs 330.85

3. Essel Propack (EPL): Essel Propack is a producer of plastic packaging material in the form of multilayer collapsible tubes and laminates used primarily for packaging of toothpaste, personal care, cosmetics, pharmaceuticals, household, and industrial products.

the current plastic ban will not affect the company instead will grow its business as,

The company aiming to be the most sustainable packaging company in the world is seen to benefit from the single-use plastic ban.

Last 1 year returns -43.65%, P.E: 23.28 (expensive as compared to industry), current share price: Rs 152.50

4. UFLEX limited: it is the largest flexible packaging company in India,

The company is capitalizing on the directive and as per the latest news has set up a plant deploying technology from the Netherlands using which it shall produce 6 billion paper straws on an annual basis that shall serve as an alternative to plastic-based straws.

packaging company UFlex aims to start producing paper straws by the next quarter. “We will be manufacturing different sizes of U-shape paper straws for our customers and this will make us achieve Rs 200-250 crore revenue by FY23-24 at peak capacity,” Ashwani Kumar Sharma, President & CEO- Aseptic Liquid Packaging Business, UFlex

Last 1 year returns 24.48%, P.E: 3.89 ( at an attractive valuation ), current market price: Rs 585.50

This share has great potential and it has many reasons to include in the list of Top 5 Stocks (shares) To Benefit From Plastic Ban In India

5. TCPL Packaging Ltd: TCPL Packaging Limited is engaged in the manufacture of paper and paper products. it is also a manufacturer of printed packaging material. It manufactures folding cartons, litho lamination, plastic cartons, blister packs, and shelf-ready packaging. It is India’s largest manufacturer of folding cartons and India’s largest standalone converter of paperboard.

Last year’s return: 78.66%, P.E: 16.76 (sligtly overvalued), current market price: Rs 875.40

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• Top 5 Stocks (shares) To Benefit From Plastic Ban In India