Is Aruna Hotels overvalued or undervalued?

As of 18 September 2025, the valuation grade for Aruna Hotels has moved from very attractive to attractive, indicating a shift in market perception. The company is currently assessed as undervalued, particularly when compared to its peers in the hotel and resort industry. Key ratios include a PE ratio of 8.09, an EV to EBITDA of 28.16, and a PEG ratio of 0.04, which suggest that the stock is trading at a significant discount relative to its earnings growth potential.
In comparison to its peers, Aruna Hotels stands out with a much lower PE ratio than Indian Hotels Co, which has a PE of 65.35, and ITC Hotels, with a PE of 71.96. This stark contrast underscores the undervaluation of Aruna Hotels in the current market. Additionally, the company's recent stock performance has lagged behind the Sensex, with a year-to-date return of -28.16% compared to the Sensex's 6.24%, reinforcing the notion that the stock may be undervalued relative to its fundamentals.