Is S I Paper Mills overvalued or undervalued?

As of 27 October 2025, the valuation grade for S I Paper Mills has moved from attractive to very attractive. The company is currently considered undervalued, with a PE ratio of -81.55, a price to book value of 0.78, and an EV to EBITDA of 10.09. In comparison to peers, JK Paper has a PE ratio of 18.92 and an EV to EBITDA of 9.01, while West Coast Paper shows a PE of 11.9 and an EV to EBITDA of 5.34, indicating that S I Paper Mills is trading at a significant discount relative to these competitors.
Despite the company's recent stock performance showing a decline of 17.49% year-to-date compared to an 8.50% gain in the Sensex, the current valuation metrics suggest that S I Paper Mills presents a compelling investment opportunity. The negative ROE of -0.96% and low ROCE of 1.05% highlight the need for operational improvements, but the overall valuation indicates that the stock is undervalued in the current market environment.