Is Advani Hotels. overvalued or undervalued?

As of 14 November 2025, Advani Hotels has moved from a fair to a very attractive valuation grade, indicating a significant improvement in its perceived value. The company is currently undervalued, especially when compared to its peers in the hotel and resort industry. Key ratios include a PE ratio of 20.92, an EV to EBITDA of 14.22, and a remarkable ROCE of 138.45%.
In comparison to its peers, Advani Hotels stands out with a much lower PE ratio than Indian Hotels Co, which has a PE of 60.76, and ITC Hotels, which has a PE of 62.36. This suggests that Advani Hotels is trading at a discount relative to these competitors. Despite recent underperformance in stock returns compared to the Sensex, particularly with a YTD decline of 19.75% versus the Sensex's 8.22% gain, the company's strong financial ratios and improved valuation grade position it well for future growth.