Share Price | Karat Packaging, Inc. Stock Analysis & Recommendation

Q: What does Karat Packaging, Inc. do?

Overview:Karat Packaging, Inc. operates in the packaging industry and is categorized as a micro-cap company.Financial Snapshot:Most recent Net Sales: 104 Million (Quarterly Results - Mar 2025) Most recent Net Profit: 7 Million (Quarterly Results - Mar 2025) Market-cap: USD 538.26 Million (Micro Cap)Key Metrics:P/E: 20.00 Dividend Yield: 0.00% Debt Equity: 0.02 Return on Equity: 20.57% Price to Book: 3.51 Contact Details:Registrar Address: Not available.

Q: Should I buy, sell or hold Karat Packaging, Inc.?

Based on the current analysis of Karat Packaging, Inc., it would be advisable to hold your position in the stock. The company demonstrates strong management efficiency with a high return on equity (ROE) of 25.32%, indicating effective use of shareholder equity. Additionally, it maintains a low debt-to-equity ratio, which suggests a solid financial structure with minimal reliance on debt.Karat Packaging has shown healthy long-term growth, with net sales increasing at an annual rate of 14.96% and operating profit growing at an impressive 51.08%. However, it's important to note that the company has experienced flat results recently, with a slight decline in profits over the past year.The stock is currently trading at a premium compared to its peers, which may warrant caution for potential new investors. However, the high institutional holdings at 31.15% indicate confidence from larger investors who typically have more resources for in-depth analysis.Given these factors, holding your investment seems prudent while monitoring the company's performance and market conditions for any changes that might influence your decision in the future.

Q: Is Karat Packaging, Inc. overvalued or undervalued?

As of 8 May 2025, the valuation grade for Karat Packaging, Inc. moved from expensive to very attractive, indicating a significant shift in its perceived value. The company is currently considered undervalued, supported by a P/E ratio of 20, an EV to EBITDA of 10.98, and a Price to Book Value of 4.09. In comparison, a peer like Karat Packaging has a P/E of 15.533 and an EV to EBITDA of 8.1525, suggesting that Karat Packaging, Inc. is trading at a premium relative to its peers.Despite its attractive valuation metrics, Karat Packaging has underperformed against the S&P 500 in recent periods, with a year-to-date return of -19.37% compared to the index's 12.22%. This underperformance highlights the potential for value realization as market conditions improve.

Q: Is Karat Packaging, Inc. technically bullish or bearish?

As of 3 September 2025, the technical trend for Karat Packaging, Inc. has changed from mildly bearish to bearish. The current stance is bearish with a moderate strength indicated by the weekly MACD and moving averages both showing bearish signals. The Bollinger Bands also reflect a bearish condition on the monthly timeframe. The stock has underperformed against the S&P 500 across multiple periods, with a year-to-date return of -19.37% compared to the S&P 500's 12.22%.

Price Point

High/Low

1Day

52 Week

Valuation

Technical

Day's Volume

CASH

64.41 k

Shareholding (Sep 2025)

FII

3.65%

Held by 35 FIIs

DII

85.7%

Held by 11 DIIs

Promoter

0.00%

How big is Karat Packaging, Inc.?

22-Jun-2025

As of Jun 18, Karat Packaging, Inc. has a market capitalization of 538.26 million, with net sales of 430.64 million and net profit of 31.17 million over the latest four quarters. Shareholder's funds are 155.57 million, and total assets are 294.52 million as of Dec 24.

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What does Karat Packaging, Inc. do?

22-Jun-2025

Karat Packaging, Inc. is a micro-cap company in the packaging industry, with recent net sales of $104 million and a net profit of $7 million. It has a market cap of $538.26 million and key metrics include a P/E ratio of 20.00 and a return on equity of 20.57%.

View full answer

Should I buy, sell or hold Karat Packaging, Inc.?

22-Jun-2025

Is Karat Packaging, Inc. overvalued or undervalued?

20-Sep-2025

As of May 8, 2025, Karat Packaging, Inc. is considered undervalued with a valuation grade shift to very attractive, despite a year-to-date return of -19.37% compared to the S&P 500's 12.22%, indicating potential for value realization as market conditions improve.

View full answer

Is Karat Packaging, Inc. technically bullish or bearish?

20-Sep-2025

As of September 3, 2025, Karat Packaging, Inc. is in a bearish trend, indicated by bearish signals from the MACD and moving averages, and has underperformed the S&P 500 with a year-to-date return of -19.37%.

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Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

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Dashboard

High Management Efficiency with a high ROE of 25.32%

Company has a low Debt to Equity ratio (avg) at times

Healthy long term growth as Net Sales has grown by an annual rate of 11.77% and Operating profit at 17.21%

Flat results in Jun 25

With ROE of 20.57%, it has a very attractive valuation with a 4.09 Price to Book Value

Below par performance in long term as well as near term

Mojo Parameters

Stock DNA

Industry

Packaging

Market cap

USD 495 Million (Micro Cap)

P/E

20.00

Industry P/E

Dividend Yield

0.00%

Debt Equity

0.08

Return on Equity

19.93%

Price to Book

3.20

Revenue and Profits:

Net Sales:

125 Million

(Quarterly Results - Sep 2025)

Net Profit:

8 Million

Total Returns

Total Returns (Price + Dividend)

TimePeriod

Price Return

Dividend Return

Total Return

3 Months

7.33%

6 Months

-3.14%

1 Year

-15.89%

2 Years

3.22%

3 Years

68.49%

4 Years

57.6%

5 Years

0.0%

Karat Packaging, Inc. for the last several years.

Risk Adjusted Returns v/s

News & Corporate Actions

News

Karat Packaging Hits 52-Week Low at $21.25 Amid Significant Decline

Karat Packaging, Inc. has reached a new 52-week low, reflecting a significant decline in its stock performance over the past year. The company, with a market capitalization of USD 509 million, maintains a low debt-to-equity ratio and a solid return on equity, highlighting its operational efficiency in the packaging industry.

Read full news article

Karat Packaging, Inc. Experiences Valuation Adjustment Amidst Market Performance Trends

Karat Packaging, Inc. has recently adjusted its valuation, with its stock price at $22.50, down from $24.00. Over the past year, the company has underperformed the S&P 500, showing a -23.36% return. Key financial metrics indicate a competitive position within the packaging industry, despite recent trends.

Read full news article

Announcements

No announcement available

Corporate Actions

No corporate action available

Key Factors

Quality key factors

Factor

Value

Sales Growth (5y)

11.77%

EBIT Growth (5y)

17.21%

EBIT to Interest (avg)

14.98

Debt to EBITDA (avg)

0.87

Net Debt to Equity (avg)

0.02

Sales to Capital Employed (avg)

1.98

Tax Ratio

24.32%

Dividend Payout Ratio

93.99%

Pledged Shares

Institutional Holding

36.90%

ROCE (avg)

21.41%

ROE (avg)

25.32%

Valuation key factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

4.09

EV to EBIT

16.47

EV to EBITDA

10.98

EV to Capital Employed

4.03

EV to Sales

1.46

PEG Ratio

Dividend Yield

ROCE (Latest)

24.48%

ROE (Latest)

20.57%

Technicals key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

Bearish

RSI

Bearish

No Signal

Bollinger Bands

Bullish

Mildly Bearish

Moving Averages

Mildly Bearish (Daily)

KST

Mildly Bullish

Bearish

Dow Theory

Mildly Bullish

OBV

Mildly Bullish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Shareholding

Shareholding Snapshot : Sep 2025

Shareholding Compare (%holding)

Majority shareholders

Domestic Funds

Held in 45 Schemes (10.65%)

Foreign Institutions

Held by 35 Foreign Institutions (3.65%)

Strategic Entities with highest holding

Highest Public shareholder

Financial

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    "header": "Quarterly Results Snapshot (Consolidated) - Sep'25 - QoQ",
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        "suffix": "QoQ Growth in quarter ended Sep 2025 is 0.40% vs 19.69% in Jun 2025",
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        "prefix": "Consolidated Net Profit ",
        "suffix": "QoQ Growth in quarter ended Sep 2025 is -31.53% vs 63.24% in Jun 2025",
        "dir": -1
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    "table": {
      "header": [
        "Sep'25",
        "Jun'25",
        "Change(%)"
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          "val1": "124.50",
          "val2": "124.00",
          "chgp": "0.40%",
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          "val1": "13.60",
          "val2": "21.60",
          "chgp": "-37.04%",
          "chgp_class": "negative"
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        {
          "field": "Interest",
          "val1": "0.50",
          "val2": "0.50",
          "chgp": "",
          "chgp_class": "neutral"
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        {
          "field": "Exceptional Items",
          "val1": "0.40",
          "val2": "0.30",
          "chgp": "33.33%",
          "chgp_class": "positive"
        },
        {
          "field": "Consolidate Net Profit",
          "val1": "7.60",
          "val2": "11.10",
          "chgp": "-31.53%",
          "chgp_class": "negative"
        },
        {
          "field": "Operating Profit Margin (Excl OI)",
          "val1": "65.60%",
          "val2": "131.20%",
          "chgp": "-6.56%",
          "chgp_class": "negative"
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    }
  },
  {
    "link": "annual",
    "btn_text": "All Annual Results",
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        "suffix": "YoY Growth in year ended Dec 2024 is 4.17% vs -4.09% in Dec 2023",
        "dir": 1
      },
      {
        "prefix": "Consolidated Net Profit ",
        "suffix": "YoY Growth in year ended Dec 2024 is -7.23% vs 28.68% in Dec 2023",
        "dir": -1
      }
    ],
    "table": {
      "header": [
        "Dec'24",
        "Dec'23",
        "Change(%)"
      ],
      "body": [
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          "field": "Net Sales",
          "val1": "422.60",
          "val2": "405.70",
          "chgp": "4.17%",
          "chgp_class": "positive"
        },
        {
          "field": "Operating Profit (PBDIT) excl Other Income",
          "val1": "58.80",
          "val2": "60.40",
          "chgp": "-2.65%",
          "chgp_class": "negative"
        },
        {
          "field": "Interest",
          "val1": "2.10",
          "val2": "2.00",
          "chgp": "5.00%",
          "chgp_class": "negative"
        },
        {
          "field": "Exceptional Items",
          "val1": "-2.00",
          "val2": "1.30",
          "chgp": "-253.85%",
          "chgp_class": "negative"
        },
        {
          "field": "Consolidate Net Profit",
          "val1": "30.80",
          "val2": "33.20",
          "chgp": "-7.23%",
          "chgp_class": "negative"
        },
        {
          "field": "Operating Profit Margin (Excl OI)",
          "val1": "95.90%",
          "val2": "109.90%",
          "chgp": "-1.40%",
          "chgp_class": "negative"
        }
      ]
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]

Quarterly Results Snapshot (Consolidated) - Sep'25 - QoQ

Sep'25

Jun'25

Change(%)

Net Sales

124.50

124.00

0.40%

Operating Profit (PBDIT) excl Other Income

13.60

21.60

-37.04%

Interest

0.50

Exceptional Items

0.40

0.30

33.33%

Consolidate Net Profit

7.60

11.10

-31.53%

Operating Profit Margin (Excl OI)

65.60%

131.20%

-6.56%

USD in Million.

Compare with Peers

Net Sales

QoQ Growth in quarter ended Sep 2025 is 0.40% vs 19.69% in Jun 2025

Consolidated Net Profit

QoQ Growth in quarter ended Sep 2025 is -31.53% vs 63.24% in Jun 2025

All Quarterly Results

Annual Results Snapshot (Consolidated) - Dec'24

Dec'24

Dec'23

Change(%)

Net Sales

422.60

405.70

4.17%

Operating Profit (PBDIT) excl Other Income

58.80

60.40

-2.65%

Interest

2.10

2.00

5.00%

Exceptional Items

-2.00

1.30

-253.85%

Consolidate Net Profit

30.80

33.20

-7.23%

Operating Profit Margin (Excl OI)

95.90%

109.90%

-1.40%

USD in Million.

Compare with Peers

Net Sales

YoY Growth in year ended Dec 2024 is 4.17% vs -4.09% in Dec 2023

Consolidated Net Profit

YoY Growth in year ended Dec 2024 is -7.23% vs 28.68% in Dec 2023

All Annual Results

Company CV

About Karat Packaging, Inc.

Karat Packaging, Inc.

Packaging

No Details Available.

Company Coordinates

No Company Details Available

Karat Packaging, Inc.

1Day

52 Week

CASH

FII

DII

Promoter

How big is Karat Packaging, Inc.?

Watch in Real-Time

What does Karat Packaging, Inc. do?

Should I buy, sell or hold Karat Packaging, Inc.?

Is Karat Packaging, Inc. overvalued or undervalued?

Is Karat Packaging, Inc. technically bullish or bearish?

Compare Karat Packaging, Inc. with Similar Stocks

MarketsMojo — Loved in India, Now Global

Dashboard

High Management Efficiency with a high ROE of 25.32%

Company has a low Debt to Equity ratio (avg) at times

Healthy long term growth as Net Sales has grown by an annual rate of 11.77% and Operating profit at 17.21%

Flat results in Jun 25

With ROE of 20.57%, it has a very attractive valuation with a 4.09 Price to Book Value

Below par performance in long term as well as near term

Mojo Parameters

Stock DNA

Total Returns (Price + Dividend)

Risk Adjusted Returns v/s

News

Karat Packaging Hits 52-Week Low at $21.25 Amid Significant Decline

Karat Packaging, Inc. Experiences Valuation Adjustment Amidst Market Performance Trends

Announcements

Corporate Actions

Quality key factors

Valuation key factors

Technicals key factors

Shareholding Snapshot : Sep 2025

Shareholding Compare (%holding)

Quarterly Results Snapshot (Consolidated) - Sep'25 - QoQ

Annual Results Snapshot (Consolidated) - Dec'24

About Karat Packaging, Inc.

Company Coordinates