Share Price | Karat Packaging, Inc. Stock Analysis & Recommendation

Q: Is Karat Packaging, Inc. overvalued or undervalued?

As of 8 May 2025, the valuation grade for Karat Packaging, Inc. moved from expensive to very attractive, indicating a significant shift in its perceived value. The company is currently considered undervalued, supported by a P/E ratio of 20, an EV to EBITDA of 10.98, and a Price to Book Value of 4.09. In comparison, a peer like Karat Packaging has a P/E of 15.533 and an EV to EBITDA of 8.1525, suggesting that Karat Packaging, Inc. is trading at a premium relative to its peers.Despite its attractive valuation metrics, Karat Packaging has underperformed against the S&P 500 in recent periods, with a year-to-date return of -19.37% compared to the index's 12.22%. This underperformance highlights the potential for value realization as market conditions improve.

Q: Is Karat Packaging, Inc. technically bullish or bearish?

As of 3 September 2025, the technical trend for Karat Packaging, Inc. has changed from mildly bearish to bearish. The current stance is bearish with a moderate strength indicated by the weekly MACD and moving averages both showing bearish signals. The Bollinger Bands also reflect a bearish condition on the monthly timeframe. The stock has underperformed against the S&P 500 across multiple periods, with a year-to-date return of -19.37% compared to the S&P 500's 12.22%.

Q: What does Karat Packaging, Inc. do?

Overview:Karat Packaging, Inc. operates in the packaging industry and is categorized as a micro-cap company.Financial Snapshot:Most recent Net Sales: 104 Million (Quarterly Results - Mar 2025) Most recent Net Profit: 7 Million (Quarterly Results - Mar 2025) Market-cap: USD 538.26 Million (Micro Cap)Key Metrics:P/E: 20.00 Dividend Yield: 0.00% Debt Equity: 0.02 Return on Equity: 20.57% Price to Book: 3.51 Contact Details:Registrar Address: Not available.

Q: Should I buy, sell or hold Karat Packaging, Inc.?

Based on the current analysis of Karat Packaging, Inc., it would be advisable to hold your position in the stock. The company demonstrates strong management efficiency with a high return on equity (ROE) of 25.32%, indicating effective use of shareholder equity. Additionally, it maintains a low debt-to-equity ratio, which suggests a solid financial structure with minimal reliance on debt.Karat Packaging has shown healthy long-term growth, with net sales increasing at an annual rate of 14.96% and operating profit growing at an impressive 51.08%. However, it's important to note that the company has experienced flat results recently, with a slight decline in profits over the past year.The stock is currently trading at a premium compared to its peers, which may warrant caution for potential new investors. However, the high institutional holdings at 31.15% indicate confidence from larger investors who typically have more resources for in-depth analysis.Given these factors, holding your investment seems prudent while monitoring the company's performance and market conditions for any changes that might influence your decision in the future.

Price Point

High/Low

1Day

52 Week

Valuation

Technical

Day's Volume

CASH

79.21 k

Shareholding (Jun 2026)

FII

5.51%

Held by 40 FIIs

DII

94.50%

Held by 14 DIIs

Promoter

0.00%

Is Karat Packaging, Inc. overvalued or undervalued?

20-Sep-2025

As of May 8, 2025, Karat Packaging, Inc. is considered undervalued with a valuation grade shift to very attractive, despite a year-to-date return of -19.37% compared to the S&P 500's 12.22%, indicating potential for value realization as market conditions improve.

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Is Karat Packaging, Inc. technically bullish or bearish?

20-Sep-2025

As of September 3, 2025, Karat Packaging, Inc. is in a bearish trend, indicated by bearish signals from the MACD and moving averages, and has underperformed the S&P 500 with a year-to-date return of -19.37%.

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How big is Karat Packaging, Inc.?

22-Jun-2025

As of Jun 18, Karat Packaging, Inc. has a market capitalization of 538.26 million, with net sales of 430.64 million and net profit of 31.17 million over the latest four quarters. Shareholder's funds are 155.57 million, and total assets are 294.52 million as of Dec 24.

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What does Karat Packaging, Inc. do?

22-Jun-2025

Karat Packaging, Inc. is a micro-cap company in the packaging industry, with recent net sales of $104 million and a net profit of $7 million. It has a market cap of $538.26 million and key metrics include a P/E ratio of 20.00 and a return on equity of 20.57%.

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Should I buy, sell or hold Karat Packaging, Inc.?

22-Jun-2025

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Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Dashboard

High Management Efficiency with a high ROE of 25.32%

The company is Net-Debt Free

Healthy long term growth as Net Sales has grown by an annual rate of 10.21% and Operating profit at 10.74%

With a growth in Net Profit of 335.11%, the company declared Outstanding results in Jun 26

With ROE of 21.50%, it has a very attractive valuation with a 3.69 Price to Book Value

Mojo Parameters

Stock DNA

Industry

Packaging

Market cap

USD 552 Million (Micro Cap)

P/E

17.00

Industry P/E

Dividend Yield

0.00%

Debt Equity

0.07

Return on Equity

21.50%

Price to Book

3.69

Revenue and Profits:

Net Sales:

136 Million

(Quarterly Results - Jun 2026)

Net Profit:

30 Million

Total Returns

Total Returns (Price + Dividend)

TimePeriod

Price Return

Dividend Return

Total Return

3 Months

76.65%

6 Months

92.26%

1 Year

121.15%

2 Years

110.74%

3 Years

141.14%

4 Years

232.88%

5 Years

140.5%

Karat Packaging, Inc. for the last several years.

Risk Adjusted Returns v/s

News & Corporate Actions

News

No Recent News for the Company

Announcements

No announcement available

Corporate Actions

No corporate action available

Key Factors

Quality key factors

Factor

Value

Sales Growth (5y)

10.21%

EBIT Growth (5y)

10.74%

EBIT to Interest (avg)

14.98

Debt to EBITDA (avg)

0.87

Net Debt to Equity (avg)

0.02

Sales to Capital Employed (avg)

2.03

Tax Ratio

24.32%

Dividend Payout Ratio

115.39%

Pledged Shares

Institutional Holding

40.42%

ROCE (avg)

21.41%

ROE (avg)

25.32%

Valuation key factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

3.69

EV to EBIT

13.72

EV to EBITDA

9.05

EV to Capital Employed

3.52

EV to Sales

1.20

PEG Ratio

Dividend Yield

ROCE (Latest)

25.68%

ROE (Latest)

21.50%

Technicals key factors

Indicator

Weekly

Monthly

MACD

Bullish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Mildly Bullish

Bullish

Moving Averages

Bullish (Daily)

KST

Bullish

Bearish

Dow Theory

No Trend

Mildly Bullish

OBV

Mildly Bullish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Shareholding

Shareholding Snapshot : Jun 2026

Shareholding Compare (%holding)

Majority shareholders

Domestic Funds

Held in 49 Schemes (12.74%)

Foreign Institutions

Held by 40 Foreign Institutions (5.51%)

Strategic Entities with highest holding

Highest Public shareholder

Financial

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    "link": "annual",
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        "suffix": "YoY Growth in year ended Dec 2025 is 6.17% vs -7.23% in Dec 2024",
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    "table": {
      "header": [
        "Dec'25",
        "Dec'24",
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          "field": "Operating Profit (PBDIT) excl Other Income",
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          "chgp": "5.95%",
          "chgp_class": "positive"
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          "field": "Interest",
          "val1": "2.10",
          "val2": "2.10",
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          "chgp_class": "neutral"
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          "val2": "-2.00",
          "chgp": "90.00%",
          "chgp_class": "positive"
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        {
          "field": "Consolidate Net Profit",
          "val1": "32.70",
          "val2": "30.80",
          "chgp": "6.17%",
          "chgp_class": "positive"
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          "field": "Operating Profit Margin (Excl OI)",
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