Is Pakka overvalued or undervalued?

As of 10 November 2025, the valuation grade for Pakka has moved from very attractive to fair. This indicates a shift in perception regarding its investment potential, suggesting that the company is currently fairly valued. The key ratios reflect this status, with a PE ratio of 65.74, an EV to EBITDA of 24.01, and a ROCE of only 2.17%, which are significantly higher than many peers in the industry. In comparison to its peers, Pakka's valuation appears elevated, especially when contrasted with JK Paper, which has a PE ratio of 21.84 and an EV to EBITDA of 9.99, and West Coast Paper, with a PE of 11.64 and an EV to EBITDA of 5.18. The high valuation metrics of Pakka, combined with its poor recent performance—down 60.43% year-to-date compared to a 6.91% gain in the Sensex—reinforce the conclusion that the company is overvalued relative to its peers and market conditions.