Is Kahan Packaging overvalued or undervalued?

As of 22 August 2025, Kahan Packaging's valuation grade has moved from expensive to fair. The company is currently fairly valued, with a PE ratio of 14.21, an EV to EBITDA of 8.36, and a ROCE of 14.45%. In comparison to peers, Garware Hi Tech is expensive with a PE of 21.31, while Uflex is attractive with a PE of 12.89, indicating that Kahan Packaging is positioned reasonably within its industry. Despite its fair valuation, Kahan Packaging has underperformed relative to the Sensex, with a year-to-date return of -31.94% compared to the Sensex's 4.05%. This discrepancy may suggest potential for recovery, as the stock is trading at a lower valuation compared to some peers while maintaining solid operational metrics.