Is Star Paper Mills overvalued or undervalued?

As of 16 September 2025, the valuation grade for Star Paper Mills has moved from attractive to very attractive, indicating a significant improvement in its perceived value. The company is currently considered undervalued, supported by a PE ratio of 6.89, an EV to EBITDA of 1.73, and a Price to Book Value of 0.41. These metrics highlight a strong valuation relative to its earnings and assets.
In comparison to its peers, Star Paper Mills stands out with a notably lower PE ratio than JK Paper, which has a PE of 19.26, and West Coast Paper, at 12.88. This suggests that Star Paper Mills offers a more compelling investment opportunity relative to its earnings potential. Additionally, while the company has faced challenges in stock performance, particularly with a year-to-date return of -17.53% compared to the Sensex's 5.43%, the overall valuation metrics indicate that it is well-positioned for future growth.