Is Kuantum Papers overvalued or undervalued?

As of 11 August 2025, the valuation grade for Kuantum Papers has moved from very attractive to attractive. The company is currently assessed as undervalued based on its financial metrics. Key ratios include a PE ratio of 11.30, a Price to Book Value of 0.83, and an EV to EBITDA of 7.75, which suggest that the stock is trading at a discount compared to its peers.
In comparison to its peers, JK Paper has a PE ratio of 17.06 and an EV to EBITDA of 8.28, while West Coast Paper shows a PE of 10.48 and an EV to EBITDA of 5.17. This indicates that Kuantum Papers is positioned favorably within the industry, particularly given its lower valuation ratios. Despite recent underperformance with a year-to-date return of -6.87% compared to the Sensex's 3.15%, the long-term outlook remains positive with a 5-year return of 125.42%, reinforcing the notion that the stock is undervalued.