Is Kahan Packaging overvalued or undervalued?

As of 19 May 2025, Kahan Packaging's valuation grade has moved from does not qualify to expensive, indicating a significant shift in its market perception. The company is currently considered overvalued. Key ratios include a PE Ratio of 17.00, an EV to EBITDA of 9.56, and a ROCE of 14.45%.
In comparison to its peers, Kahan Packaging's PE Ratio is notably lower than Garware Hi-Tech Films Ltd., which stands at 31.43, but higher than Uflex Ltd. at 13.56. This suggests that while Kahan Packaging is priced higher relative to some competitors, it still lags behind in terms of valuation compared to others in the industry. Additionally, the company's recent stock performance has underperformed the Sensex, with a year-to-date return of -18.56% compared to the Sensex's 5.54%, reinforcing the notion of overvaluation.