Highlights: - Profitability of paper companies on an uptrend - IPAPPM well placed to take advantage of the growth in paper industry - Stellar operating and financial performance - High margin looks sustainable - Valuations reasonable despite run-up in the stock India is the fastest growing market for paper globally and is expected to grow over six percent per annum over the next few years. With an estimated domestic turnover of about Rs 50,000 crore, it accounts for about three percent of the world’s paper production. This presents an exciting scenario as paper consumption is poised for a big leap forward in sync with economic growth. Paper companies turned around sharply in FY17 and their profitability is on an uptrend. H1 FY19 earnings of paper companies reaffirmed the growth momentum. While JK Paper remains our top pick in the sector, we delved further to identify another paper company that benefits from an upturn in the sector. After all, a rising tide lift...