Is Shreenath Paper overvalued or undervalued?

As of 16 September 2025, Shreenath Paper's valuation grade has moved from fair to expensive, indicating a shift in its market perception. The company appears overvalued based on its current metrics, particularly with a PE ratio of 14.83 and an EV to EBITDA ratio of 13.62. Additionally, the company's ROCE stands at 6.61%, which is relatively low compared to the industry standards.
When compared to peers, Shreenath Paper's valuation is notably higher than PTC India, which is rated very attractive with a PE of 8.37, and Optiemus Infra, which is considered fair with a PE of 86.12. This disparity suggests that Shreenath Paper may not justify its current price given its performance metrics. Furthermore, the company's stock has underperformed against the Sensex in the past month, declining by 9.84% while the Sensex rose by 2.21%. Overall, the analysis indicates that Shreenath Paper is overvalued in the current market environment.