Is Pakka overvalued or undervalued?

As of 17 November 2025, the valuation grade for Pakka has moved from very attractive to attractive, indicating a shift in market perception. The company is currently assessed as overvalued. Key ratios reflect this assessment, with a PE Ratio of 62.84, an EV to EBIT of 54.62, and a ROCE of only 2.17%.
When compared to peers, Pakka's valuation stands out significantly; for instance, JK Paper has a PE Ratio of 21.56 and an EV to EBITDA of 9.21, while West Coast Paper is valued at a PE of 15.66 and an EV to EBITDA of 5.66. These comparisons highlight that Pakka's valuation metrics are substantially higher than those of its peers, reinforcing the conclusion of overvaluation. Additionally, Pakka's stock has underperformed relative to the Sensex, particularly in the year-to-date period, where it has declined by 62.18% compared to the Sensex's gain of 8.72%.