Is Kuantum Papers overvalued or undervalued?

As of 25 August 2025, the valuation grade for Kuantum Papers has moved from very attractive to attractive. The company is currently assessed as undervalued, with a PE ratio of 11.56, a price-to-book value of 0.85, and an EV to EBITDA ratio of 7.86. In comparison to its peers, JK Paper has a significantly higher PE ratio of 19.71, while West Coast Paper is at 14.22, indicating that Kuantum Papers is trading at a discount relative to these competitors.
Despite recent stock performance showing a decline of 20.07% over the past year, Kuantum Papers has demonstrated resilience with a 5-year return of 132.25%, outperforming the Sensex's 110.16% over the same period. This suggests that while the stock may be undervalued currently, it has the potential for recovery and growth in the longer term.