Is Kahan Packaging overvalued or undervalued?

As of 8 August 2025, Kahan Packaging's valuation grade has moved from fair to risky, indicating a significant shift in its perceived value. The company appears to be overvalued based on its current metrics, with a PE ratio of 13.60, an EV to EBITDA of 8.11, and a ROCE of 14.45%. In comparison to its peers, Garware Hi Tech is considered expensive with a PE of 22, while Uflex is attractive with a PE of 12.81, suggesting that Kahan Packaging's valuation does not align favorably within the industry. The company's current price of 56.00 reflects a troubling year-to-date return of -34.85%, contrasting sharply with the Sensex's positive return of 2.20% over the same period. This underperformance, coupled with its risky valuation grade, reinforces the conclusion that Kahan Packaging is overvalued in the current market context.