Is Kahan Packaging overvalued or undervalued?

As of 17 September 2025, Kahan Packaging's valuation grade has moved from expensive to fair, indicating a shift in its market perception. The company is currently fairly valued, with a PE ratio of 13.84, an EV to EBITDA of 8.94, and a ROE of 11.36%. In comparison to its peers, Kahan Packaging's valuation metrics are more attractive than Garware Hi Tech, which has a PE of 24.39, and Huhtamaki India, with a PE of 24.29, both of which are considered expensive.
Despite the fair valuation, Kahan Packaging has faced significant stock price declines, with a year-to-date return of -33.68% compared to a Sensex return of 5.83%. This discrepancy suggests that the market may still be underestimating the company's potential, reinforcing the view that Kahan Packaging is fairly valued in a challenging market environment.