Is Kahan Packaging overvalued or undervalued?

As of 12 August 2025, Kahan Packaging's valuation grade has moved from fair to expensive, indicating a shift towards overvaluation. The company currently has a PE ratio of 14.81, an EV to EBITDA of 8.62, and a Price to Book Value of 1.90. Compared to its peers, Kahan Packaging appears overvalued, especially when considering Garware Hi Tech with a PE of 20.33 and AGI Greenpac, which has a more attractive valuation at a PE of 16.59. Given these metrics and the current market conditions, Kahan Packaging is assessed as overvalued. The company's stock has underperformed significantly, with a year-to-date return of -29.03%, contrasting sharply with the Sensex's positive return of 2.68% during the same period. This further reinforces the conclusion that Kahan Packaging is not a favorable investment at its current price level.