Is Pudumjee Paper overvalued or undervalued?

As of 7 November 2025, Pudumjee Paper's valuation grade has moved from attractive to fair, indicating a shift in perception regarding its market value. The company is currently fairly valued, with a PE ratio of 10.41, an EV to EBITDA ratio of 7.71, and a Price to Book Value of 1.87. Compared to peers, JK Paper has a significantly higher PE ratio of 22.04, while West Coast Paper, which is rated as attractive, has a PE ratio of 11.81, suggesting that Pudumjee Paper is positioned competitively within its sector.
Despite its fair valuation, Pudumjee Paper has faced challenges in stock performance, particularly in the year-to-date period, where it has underperformed with a return of -36.12% compared to a positive return of 6.50% for the Sensex. This underperformance, alongside its current valuation metrics, reinforces the conclusion that while the company is fairly valued, there may be underlying issues affecting its stock price that warrant further investigation.