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 market perception. The company appears to be overvalued, particularly given its high PE ratio of 71.06 and negative EV to EBITDA of -47.78, which suggest that the stock price does not reflect the underlying financial health. Additionally, the Price to Book Value stands at a mere 0.08, further emphasizing the disconnect between market valuation and intrinsic value.
In comparison to its peers, Andhra Paper's valuation metrics are starkly higher than those of JK Paper, which has a PE ratio of 22.04, and West Coast Paper, with a PE of 11.81, both of which are categorized as fairly valued or attractive. This disparity highlights the overvaluation of Andhra Paper within its industry. Furthermore, the company's recent stock performance has underperformed against the Sensex, with a year-to-date return of -22.52% compared to the Sensex's 6.50%, reinforcing the notion that the stock may not be a sound investment at its current price of 73.44.