Is S I Paper Mills overvalued or undervalued?

As of 31 October 2025, S I Paper Mills has moved from a very attractive to an attractive valuation grade. The company appears to be overvalued based on its current metrics. Key ratios include a PE ratio of -74.12, an EV to EBITDA of 9.65, and a Price to Book Value of 0.71, which indicate significant financial distress and underperformance compared to its peers.
In comparison to its peers, JK Paper has a PE ratio of 19.18 and an EV to EBITDA of 9.12, while West Coast Paper shows a PE of 11.87 and an EV to EBITDA of 5.32. These ratios suggest that S I Paper Mills is underperforming relative to these competitors, particularly given its negative PE ratio and low return on equity of -0.96%. Additionally, the company's stock has underperformed against the Sensex, with a year-to-date return of -25.00% compared to the Sensex's 7.42%, reinforcing the notion that the stock is overvalued at its current price of 80.25.