Is Kay Power &Paper overvalued or undervalued?

As of 13 November 2025, Kay Power & Paper has moved from a fair to an attractive valuation grade. The company appears to be undervalued, particularly when considering its current PE ratio of 29.76, EV to EBITDA of 16.25, and a Price to Book Value of 0.64. Notably, its ROE stands at 2.16%, which, while low, is comparable to peers like JK Paper, which has a PE of 21.75, and West Coast Paper, which is considered expensive with a PE of 15.94.
In comparison to its peers, Kay Power & Paper's valuation metrics suggest it is positioned favorably, especially against companies like Seshasayee Paper, which is classified as very expensive with a PE of 19.14. Despite recent stock performance showing a significant decline year-to-date of -65.41% compared to the Sensex's 8.11% increase, the long-term outlook remains positive, with a 5-year return of 436.13%. This indicates potential for recovery and growth, reinforcing the undervaluation narrative.