Is Andhra Paper overvalued or undervalued?

As of 7 November 2025, Andhra Paper's valuation grade has moved from expensive to risky, indicating a significant shift in its financial outlook. The company is currently assessed as overvalued. Key ratios reveal a PE ratio of 71.06, an EV to EBIT of 150.24, and a negative EV to EBITDA of -47.78, which highlight its poor financial performance relative to its market price.
In comparison to its peers, Andhra Paper's valuation stands out unfavorably; for instance, JK Paper has a PE ratio of 22.04 and an EV to EBITDA of 10.05, while West Coast Paper shows a PE of 11.81 and an EV to EBITDA of 5.28. These comparisons underscore the overvaluation of Andhra Paper, particularly as it has underperformed against the Sensex, with a year-to-date return of -22.52% compared to the Sensex's 6.50%.