Is Nikita Papers overvalued or undervalued?

As of 23 September 2025, the valuation grade for Nikita Papers has moved from expensive to very expensive, indicating a significant shift in its market perception. The company is currently assessed as overvalued. Key ratios include a PE ratio of 12.32, an EV to EBITDA of 11.31, and a ROE of 22.11%.
When compared to peers, JK Paper, which is rated attractive, has a higher PE ratio of 18.66 and a lower EV to EBITDA of 8.91, while West Coast Paper also rated attractive, has a PE ratio of 12.54 and an EV to EBITDA of 5.73. These comparisons highlight that Nikita Papers is trading at a premium relative to its peers despite its lower growth prospects, as indicated by the PEG ratio of 0.00. The recent stock performance shows a decline of 5.1% over the past week, contrasting with the Sensex's minor drop of 0.28%, reinforcing the notion of overvaluation.