Is Guj. Containers overvalued or undervalued?

As of 21 August 2025, the valuation grade for Guj. Containers has moved from attractive to very attractive, indicating a significant improvement in its valuation outlook. The company is currently assessed as undervalued, with a PE ratio of 12.96, an EV to EBITDA of 8.49, and a ROCE of 18.51%. In comparison to peers, Garware Hi Tech is considered expensive with a PE of 21.52, while AGI Greenpac, which is also very attractive, has a PE of 17.55 and an EV to EBITDA of 10.11.
Despite recent stock performance lagging behind the Sensex, with a year-to-date return of -6.42% compared to the Sensex's 4.94%, the underlying financial metrics suggest that Guj. Containers presents a compelling investment opportunity. The company's strong ROE of 14.60% further supports its undervalued status in the packaging industry.