Is Star Paper Mills overvalued or undervalued?

As of 26 August 2025, the valuation grade for Star Paper Mills has moved from fair to attractive, indicating a more favorable assessment of its financial health. The company is currently considered undervalued, given its low PE ratio of 6.94, an EV to EBITDA ratio of 2.45, and a Price to Book Value of 0.43. These metrics suggest that the stock is trading at a significant discount compared to its intrinsic value.
In comparison to its peers, Star Paper Mills stands out with a much lower PE ratio than JK Paper, which has a PE of 18.13, and West Coast Paper, which is at 13.54. Additionally, the company's EV to Sales ratio of 0.19 is substantially lower than that of its peers, reinforcing the undervaluation narrative. Despite recent underperformance relative to the Sensex over the past year, the long-term perspective shows a remarkable 583.88% return over the last decade, suggesting potential for recovery and growth in the future.