Is Emami Paper overvalued or undervalued?

As of 19 August 2025, Emami Paper's valuation grade has moved from very attractive to attractive, indicating a shift in market perception. The company appears to be fairly valued at this time. Key ratios include a PE ratio of 28.97, an EV to EBITDA of 9.76, and a Price to Book Value of 0.83, which suggest that while the company has strong earnings potential, its valuation is not as compelling as before.
In comparison to peers, Emami Paper's PE ratio is significantly higher than JK Paper's 17.21 and West Coast Paper's 12.92, suggesting that it may be overvalued relative to these competitors. Additionally, the company's recent stock performance has lagged behind the Sensex over the longer term, with a year-to-date return of -16.39% compared to the Sensex's 4.49%. This underperformance reinforces the notion that Emami Paper may be nearing its fair value, particularly in light of its current ratios and peer comparisons.