Is Aruna Hotels overvalued or undervalued?

As of 1 October 2025, Aruna Hotels has moved from an attractive to a very attractive valuation grade. The company is currently undervalued, with a PE ratio of 8.32, a Price to Book Value of 1.04, and an EV to EBITDA ratio of 28.32. In comparison to its peers, Aruna Hotels stands out with a significantly lower PE ratio than Indian Hotels Co, which has a PE of 60.41, and ITC Hotels, which has a PE of 66.02, both categorized as very expensive.
Despite recent challenges, including a year-to-date stock return of -26.14% compared to the Sensex's 3.64%, Aruna Hotels' strong fundamentals, highlighted by a PEG ratio of 0.05 and an ROE of 12.46%, suggest that the stock is undervalued in the current market environment.