Is Aruna Hotels overvalued or undervalued?

As of 22 September 2025, the valuation grade for Aruna Hotels has moved from attractive to very attractive, indicating a positive shift in its perceived value. The company is currently considered undervalued. Key ratios include a PE ratio of 8.13, a Price to Book Value of 1.01, and an EV to EBITDA of 28.19, which are significantly lower compared to its peers.
In the peer comparison, Indian Hotels Co has a PE ratio of 64.24 and an EV to EBITDA of 37.81, while ITC Hotels shows a PE of 71.3 and an EV to EBITDA of 40.66, highlighting that Aruna Hotels is trading at a substantial discount relative to these competitors. Despite recent stock performance lagging behind the Sensex, with a year-to-date decline of 27.72% compared to the Sensex's gain of 5.15%, the fundamental valuation metrics suggest that Aruna Hotels presents a compelling investment opportunity.