Is Three M Paper overvalued or undervalued?

As of 23 September 2025, the valuation grade for Three M Paper has moved from fair to attractive, indicating a positive shift in its valuation outlook. The company is currently assessed as undervalued based on its financial metrics. Notable ratios include a PE ratio of 7.13, an EV to EBITDA of 6.08, and a Price to Book Value of 0.69, all of which suggest that the stock is trading at a significant discount compared to its peers.
In comparison with its industry peers, Three M Paper's PE ratio is considerably lower than JK Paper's 18.66 and West Coast Paper's 12.54, reinforcing the notion of undervaluation. Additionally, the company's ROCE stands at 9.19% and ROE at 9.62%, which are competitive figures within the sector. Despite recent stock performance lagging behind the Sensex, with a year-to-date return of -43.47% compared to the Sensex's 5.07%, the attractive valuation metrics suggest that Three M Paper presents a compelling investment opportunity moving forward.