Is Aruna Hotels overvalued or undervalued?

As of 17 November 2025, the valuation grade for Aruna Hotels has moved from very attractive to attractive. The company is currently assessed as undervalued, particularly when considering its PE ratio of 6.86, a price-to-book value of 1.12, and an EV to EBITDA of 24.04. These metrics suggest that Aruna Hotels is trading at a significant discount compared to its peers, such as Indian Hotels Co, which has a PE ratio of 61.02, and ITC Hotels, with a PE ratio of 62.61.
In the context of the broader market, Aruna Hotels has shown a stock return of 12.25% over the past week, outperforming the Sensex's return of 1.69%. However, over the longer term, the company's year-to-date return of -20.44% and one-year return of -13.29% indicate challenges that may have impacted investor sentiment. Overall, the valuation metrics and peer comparisons suggest that Aruna Hotels presents a compelling investment opportunity at its current price of 9.07.