Check Before You Invest : Kahan Packaging Ltd

Q: Which industry/sub-sector does Kahan Packaging Ltd belong to?

Kahan Packaging Ltd belongs to the FMCG sector, operating specifically within the Packaging segment.

Q: Is Kahan Packaging Ltd a good quality company?

Kahan Packaging Ltd is a quality company, based on a multi-year financial track record. This assessment is based on company’s performance on Revenue growth, ROCE, Equity and Assets, key margin ratios, cash conversion cycle, and debt to cash flow from operations and how it compares with its long term averages.

Q: Is Kahan Packaging Ltd undervalued or overvalued?

Kahan Packaging Ltd appears Undervalued, as its key valuation ratios are lower than their past averages. Based on the industry it operates in, the relevant valuation ratios include one of the following, P/E, P/BV, P/Sales, EV/EBITDA or a combination of two or more. Valuation Ratios. Price to Earnings, Current: 10.19, Historic Median: 17.93. Price to Book, Current: 1.16, Historic Median: 2.11. Price to Sales, Current: 0.4, Historic Median: 0.74. EV to EBITDA, Current: 6.83, Historic Median: 10.56

Q: Is Kahan Packaging Ltd a good buy now?

Kahan Packaging Ltd is not a good buy now, based on weak price trend analysis suggesting prices may fall. However, you need to check its quality and valuation before making a decision

Q: Revenue growth of Kahan Packaging Ltd?

Kahan Packaging Ltd revenue growth is 14.9% for FY-2025, which is below its 5-year CAGR of 15.91%, indicating slower growth.

Q: Gross Profit margin of Kahan Packaging Ltd?

Kahan Packaging Ltd Gross profit margin which is the profit after deduction of direct costs, is 7% for FY-2025, which is in line with its 5-year median of 6.9%, indicating stable margins.

Q: Operating Profit Margin of Kahan Packaging Ltd?

Kahan Packaging Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 9.5% for FY-2025, which is in line with its 5-year median of 9.5% indicating stable margins.

Q: Net Profit Margin of Kahan Packaging Ltd?

Kahan Packaging Ltd Net Profit Margin is 3.95% for FY-2025, is in line with its 5-year median of 3.95%, indicating stable margins. Profitability Metrics. Gross Profit Margin (%), Current: 7, Historic Median: 6.9. Operating Profit Margin (%), Current: 9.5, Historic Median: 9.5. Net Profit Margin (%), Current: 3.95, Historic Median: 3.95

Q: Return on Asset of Kahan Packaging Ltd?

Kahan Packaging Ltd Return on Asset is 5.49%, which is in line with its 5-year historical median of 5.49%, indicating stable asset utilization efficiency.

Q: Return on capital employed (ROCE) of Kahan Packaging Ltd?

Kahan Packaging Ltd Return on capital employed is 14.25% for FY-2025, which is in line with its 5-year historical median of 14.25%. The current ROCE is above its estimated weighted average cost of capital (WACC) of 14%, indicating value creation.

Snapshot

Q.1 Which industry/sub-sector does Kahan Packaging Ltd belong to?

Kahan Packaging Ltd belongs to the FMCG sector, operating specifically within the Packaging segment.

Q.2 Is Kahan Packaging Ltd a good quality company?

Kahan Packaging Ltd is a quality company, based on a multi-year financial track record.

This assessment is based on company’s performance on Revenue growth, ROCE, Equity and Assets, key margin ratios, cash conversion cycle, and debt to cash flow from operations and how it compares with its long term averages.

Q.3 Is Kahan Packaging Ltd undervalued or overvalued?

Kahan Packaging Ltd appears Undervalued, as its key valuation ratios are lower than their past averages.

Based on the industry it operates in, the relevant valuation ratios include one of the following, P/E, P/BV, P/Sales, EV/EBITDA or a combination of two or more.

Valuation Ratios	Current	5-year Historic Median
Price to Earnings	10.19	17.93
Price to Book	1.16	2.11
Price to Sales	0.4	0.74
EV to EBITDA	6.83	10.56

Q.4 Is Kahan Packaging Ltd a good buy now?

Kahan Packaging Ltd is not a good buy now, based on weak price trend analysis suggesting prices may fall. However, you need to check its quality and valuation before making a decision

Performance Analysis

We have analysed the performance of the company on the following:

How has it performed on generating Profits?
By checking its Revenue growth, Gross, Operating and Net Margins compared to its last 5-year median.
How efficiently has it utilized Capital?
By checking its ROCE, ROA, ROE and its Cash Conversion Cycle.
How is it managing its Debt?
By checking its Debt to Equity and Cash Flow from Operations.

A: What are the trends in revenue and profit margins?

Q.1 Revenue growth of Kahan Packaging Ltd?

Kahan Packaging Ltd revenue growth is 14.9% for FY-2025, which is below its 5-year CAGR of 15.91%, indicating slower growth.

Q.2 Gross Profit margin of Kahan Packaging Ltd?

Kahan Packaging Ltd Gross profit margin which is the profit after deduction of direct costs, is 7% for FY-2025, which is in line with its 5-year median of 6.9%, indicating stable margins.

Q.3 Operating Profit Margin of Kahan Packaging Ltd?

Kahan Packaging Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 9.5% for FY-2025, which is in line with its 5-year median of 9.5% indicating stable margins.

Q.4 Net Profit Margin of Kahan Packaging Ltd?

Kahan Packaging Ltd Net Profit Margin is 3.95% for FY-2025, is in line with its 5-year median of 3.95%, indicating stable margins.

	Current Level	5-year Historic Median
Gross Profit Margin (%)	7	6.9
Operating Profit Margin (%)	9.5	9.5
Net Profit Margin (%)	3.95	3.95

B: Does the business utilize capital efficiently?

Q.5 Return on Asset of Kahan Packaging Ltd?

Kahan Packaging Ltd Return on Asset is 5.49%, which is in line with its 5-year historical median of 5.49%, indicating stable asset utilization efficiency.

Q.6 Return on capital employed (ROCE) of Kahan Packaging Ltd?

Kahan Packaging Ltd Return on capital employed is 14.25% for FY-2025, which is in line with its 5-year historical median of 14.25%. The current ROCE is above its estimated weighted average cost of capital (WACC) of 14%, indicating value creation.

Q.7 Return on Equity (ROE) of Kahan Packaging Ltd?

Kahan Packaging Ltd Return on equity is 12.06% for FY-2025, which is below its 5-year historical median of 18.34%, indicating the business is making worse use of its shareholders capital.

Q.8 Cash conversion cycle of Kahan Packaging Ltd?

Kahan Packaging Ltd Cash conversion cycle is 108 days, above its 5-year historical median of 65 days, indicating deteriorated working capital management. However, you need to compare this with its peers in the industry.

	Current Level	5-year Historic Median
Asset Turnover (x)	1.39	1.43
ROE (%)	12.06	18.34
ROCE (%)	14.25	14.25
Cash Conversion Cycle	108 days	65 days

C: How much debt does the business have and is it at a sustainable level?

Q.9 Debt to Equity ratio of Kahan Packaging Ltd?

Kahan Packaging Ltd Debt-to-Equity ratio is 0.81, which is above the industry average of 0.46, indicating higher debt levels in the industry.

Q.10 Debt to cash flow from operations of Kahan Packaging Ltd?

Kahan Packaging Ltd Debt to cash flow from operations is 5.84, which is at a unhealthy level.

Ownership & governance

D: Promoter shareholding and pledge status of Kahan Packaging Ltd?

Q.1 Promoter shareholding and pledge status of Kahan Packaging Ltd?

Promoters hold 73.49% of the Kahan Packaging Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

E: How does Kahan Packaging Ltd performance compare with that of its Peers?

Q.1 Revenue growth of Kahan Packaging Ltd vs industry peers?

Kahan Packaging Ltd revenue CAGR is 15.91%, compared to the industry median CAGR of 1.27%, indicating faster growth and gaining its market share.

Profit Metrics

	Current Level	5-year Industry Median
Revenue Growth (%)	14.9	1.3
Gross Profit Growth (%)	17.1	7.2
Operating Profit Growth (%)	13.9	8.9
Net Profit Growth (%)	12	8.4

Operating Efficiency

	Current Level	5-year Industry Median
Asset Turnover (x)	1.39	1.4
ROE (%)	12.06	12.86
ROCE (%)	14.25	12.85
Cash Conversion Cycle (days)	107.96	67

Valuation & price assessment

Q.1 Stock return of Kahan Packaging Ltd over the last decade?

Over the last 1 year(s), the stock has delivered a CAGR of -40.85% based on the current price.

	9Y	5Y	3Y	1Y
Share Price CAGR	-	-	-	-40.9%

Q.2 Valuation ratios of Kahan Packaging Ltd vs historical?

The current P/E ratio of 10.19 is lower than its historical median of 17.93, indicating that the stock is trading below its historical average valuation.

Q.3 How do the current valuation ratios compare with 5-year historical median and industry numbers?

Valuation Ratios	Current	5-year Historic Median	5-year Industry Median
Price to Earnings	10.19	17.93	21.99
Price to Book	1.16	2.11	2.21
Price to Sales	0.4	0.74	1.17
EV to EBITDA	6.83	10.56	11.40

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