Is Aruna Hotels overvalued or undervalued?

As of 17 September 2025, the valuation grade for Aruna Hotels has moved from attractive to very attractive. The company is currently assessed as undervalued based on its financial metrics. Key ratios include a PE ratio of 8.06, a Price to Book Value of 1.00, and a PEG ratio of 0.04, which significantly underlines its valuation compared to peers.
In comparison to its industry peers, Aruna Hotels stands out with a much lower PE ratio than Indian Hotels Co, which has a PE of 65.1, and ITC Hotels, at 72.19. Additionally, Aruna's EV to EBITDA ratio of 28.13 is more favorable than the exorbitant valuations seen in its competitors. Despite recent stock performance lagging behind the Sensex, with a year-to-date return of -28.95% compared to the Sensex's 5.83%, the company's fundamental valuation metrics suggest it is a compelling investment opportunity.