Is Ruchira Papers overvalued or undervalued?

As of 24 September 2025, Ruchira Papers has moved from an attractive to a very attractive valuation grade. The company is currently undervalued, supported by a PE ratio of 6.47, an EV to EBITDA of 4.94, and a PEG ratio of 0.10. These ratios indicate strong earnings potential relative to its price, suggesting that the stock is trading at a significant discount compared to its intrinsic value.
In comparison to its peers, Ruchira Papers stands out with a much lower PE ratio than JK Paper at 18.39 and West Coast Paper at 12.6, both of which are considered to be in a more favorable valuation range. Additionally, Ruchira's EV to EBITDA is also more favorable than that of its peers, reinforcing its undervalued status. Notably, the company's recent stock performance has outpaced the Sensex, with a year-to-date return of 16.95% compared to the Sensex's 4.58%, further supporting the argument for its undervaluation.