Is Three M Paper overvalued or undervalued?

As of 1 October 2025, the valuation grade for Three M Paper has moved from fair to attractive, indicating a positive shift in its perceived value. The company is currently considered undervalued based on its strong financial ratios, including a PE ratio of 6.91, an EV to EBITDA of 5.98, and a Price to Book Value of 0.67. These figures suggest that the stock is trading at a significant discount compared to its earnings and book value.
In comparison to its peers, Three M Paper's PE ratio is notably lower than that of JK Paper, which stands at 18.99, and West Coast Paper at 12.64, highlighting its undervaluation in the market. Additionally, the company's return on capital employed (ROCE) is 9.19%, which is competitive within the industry. Despite recent stock performance showing a decline of 45.19% year-to-date, compared to a 3.64% increase in the Sensex, the current valuation metrics suggest that Three M Paper presents a compelling investment opportunity.