Is Star Paper Mills overvalued or undervalued?

As of 17 July 2025, the valuation grade for Star Paper Mills has moved from attractive to fair. The company is currently fairly valued based on its financial metrics. Key ratios include a PE ratio of 6.93, an EV to EBITDA of 2.40, and a Price to Book Value of 0.44, which suggest that the stock is trading at a reasonable valuation compared to its earnings and asset base.
When compared to peers, Star Paper Mills has a significantly lower PE ratio than JK Paper, which stands at 16.31, indicating that Star may be undervalued relative to more expensive competitors. Additionally, West Coast Paper is considered expensive with a PE of 11.89. Despite recent stock performance showing a 1.61% gain over the past week compared to a -1.12% return for the Sensex, the longer-term view reflects a decline of 29.39% over the past year, contrasting with the Sensex's 1.91% gain. This suggests that while the stock may be fairly valued now, it has underperformed in the longer term.