Is Kuantum Papers overvalued or undervalued?

As of 4 August 2025, the valuation grade for Kuantum Papers has moved from attractive to very attractive, indicating a stronger position in the market. The company is currently considered undervalued based on its financial metrics. Key ratios include a PE ratio of 9.49, an EV to EBITDA of 7.11, and a Price to Book Value of 0.90, all of which suggest that the stock is trading at a discount compared to its earnings and assets.
In comparison to its peers, Kuantum Papers stands out with a lower PE ratio than JK Paper, which has a PE of 17.17, and West Coast Paper at 10.96, both categorized as attractive. The company's PEG ratio is notably low at 0.00, indicating potential for growth without the corresponding price increase. Additionally, while Kuantum Papers has experienced a decline of 21.26% over the past year, it has significantly outperformed the Sensex over a 5-year period, with a return of 159.75% compared to the Sensex's 114.97%. This reinforces the notion that the stock may be undervalued relative to its growth potential.