Is Star Paper Mills overvalued or undervalued?

As of 14 August 2025, the valuation grade for Star Paper Mills has moved from very attractive to attractive. The company appears to be undervalued, particularly when considering its low PE ratio of 6.83, a price to book value of 0.42, and an EV to EBITDA of 2.31. In comparison, its peer JK Paper has a significantly higher PE ratio of 17.34, while West Coast Paper is considered expensive with a PE ratio of 12.79.
Despite recent stock performance showing a decline of 25.31% over the past year compared to a 1.89% increase in the Sensex, the company's strong dividend yield of 2.28% and a ROCE of 11.45% suggest potential for recovery. Overall, Star Paper Mills is positioned favorably within its industry, indicating that it may be a worthwhile investment opportunity at its current price of 175.30.