Is Star Paper Mills overvalued or undervalued?

As of 21 July 2025, Star Paper Mills has moved from a fair to an attractive valuation grade. The company is currently considered undervalued, with a PE ratio of 6.70, a Price to Book Value of 0.43, and an EV to EBITDA ratio of 2.15. These ratios indicate a significant discount compared to its peers, such as JK Paper, which has a PE ratio of 15.84 and an EV to EBITDA of 8.53, and West Coast Paper, with a PE ratio of 11.79 and an EV to EBITDA of 6.02.
Despite recent underperformance relative to the Sensex, with a year-to-date return of -17.67% compared to the Sensex's 5.20%, the fundamental metrics suggest that Star Paper Mills is positioned favorably within its industry. The company's low valuation ratios, particularly in comparison to its peers, reinforce the assessment that it is undervalued in the current market.