Is Subam Papers overvalued or undervalued?

As of 27 June 2025, the valuation grade for Subam Papers has moved from fair to attractive, indicating a positive shift in its perceived value. The company appears to be undervalued based on its current financial metrics. Key ratios include a PE ratio of 7.71, an EV to EBITDA of 5.39, and a ROCE of 14.22%. These figures suggest that Subam Papers is trading at a discount compared to its peers.
In comparison, JK Paper, which is rated very attractive, has a PE ratio of 15.36 and an EV to EBITDA of 8.31, while West Coast Paper, rated fair, has a PE of 10.88 and an EV to EBITDA of 5.43. This peer comparison highlights Subam Papers' relative undervaluation in the market. Additionally, despite a recent stock return of 21.38% over the past week, the year-to-date performance shows a decline of 37.82%, reinforcing the notion that the stock may be undervalued at its current price of 88.61.