Is S I Paper Mills overvalued or undervalued?

As of 24 October 2025, the valuation grade for S I Paper Mills has moved from very attractive to attractive. The company is currently considered overvalued, primarily due to its significantly negative PE ratio of -84.26 and a low return on equity (ROE) of -0.96%. Additionally, the EV to EBITDA ratio stands at 10.26, which is higher than some peers, indicating potential overvaluation relative to earnings before interest, taxes, depreciation, and amortization.
In comparison to its peers, JK Paper has a PE ratio of 19.31 and an EV to EBITDA of 9.17, while West Coast Paper shows a PE of 12.07 and an EV to EBITDA of 5.44. These ratios suggest that S I Paper Mills is trading at a premium compared to these attractive peers, further supporting the conclusion that it is overvalued. Despite a recent stock return of 30.31% over the past week, the longer-term performance shows a decline of 14.74% year-to-date, which contrasts with the Sensex's positive return of 7.77% in the same period.