Is Star Paper Mills overvalued or undervalued?

As of 14 July 2025, the valuation grade for Star Paper Mills moved from fair to attractive, indicating a positive shift in its perceived value. The company appears undervalued based on its current metrics, with a PE ratio of 6.71, an EV to EBITDA of 2.16, and a Price to Book Value of 0.43. These ratios suggest that Star Paper Mills is trading at a significant discount compared to its peers, such as JK Paper, which has a PE ratio of 15.91, and West Coast Paper, with a PE ratio of 11.4.
In comparison to the broader market, Star Paper Mills has underperformed in the short term, with a year-to-date return of -17.53% against a Sensex return of 5.27%. However, its long-term performance remains strong, with a remarkable 583.01% return over the past decade. Overall, the attractive valuation coupled with the low ratios indicates that Star Paper Mills is an undervalued opportunity in the paper industry.