Is Star Paper Mills overvalued or undervalued?

As of 23 July 2025, Star Paper Mills has moved from an attractive to a fair valuation grade. The company appears to be fairly valued based on its current metrics, with a PE ratio of 6.84, an EV to EBITDA of 2.30, and a Price to Book Value of 0.43. Compared to peers, JK Paper is rated very attractive with a PE of 15.97, while West Coast Paper is considered expensive with a PE of 11.77, indicating that Star Paper Mills is trading at a significant discount relative to some of its competitors.
Despite the fair valuation, Star Paper Mills has underperformed in the market, with a year-to-date return of -15.97%, contrasting sharply with the Sensex's gain of 5.87% over the same period. This underperformance, combined with its low valuation ratios, suggests that while the company is fairly valued, it may still face challenges in improving its market position.