Is Aruna Hotels overvalued or undervalued?

As of 23 September 2025, the valuation grade for Aruna Hotels has moved from very attractive to attractive. The company is currently considered undervalued based on its financial metrics. Key ratios include a PE ratio of 7.81, an EV to EBITDA of 27.96, and a PEG ratio of 0.04, indicating strong potential for growth relative to its price.
In comparison to its peers, Aruna Hotels stands out with a significantly lower PE ratio than Indian Hotels Co, which has a PE of 62.81, and ITC Hotels, which is at 70.67. Despite the recent stock performance showing a decline of 30.7% year-to-date compared to a 5.07% gain in the Sensex, the underlying valuation metrics suggest that Aruna Hotels remains a compelling investment opportunity within the Hotels & Resorts sector.