Is HLV overvalued or undervalued?

As of 17 November 2025, the valuation grade for HLV has moved from attractive to risky, indicating a significant shift in its perceived financial health. The company is currently considered overvalued, primarily due to its high PE ratio of 63.87 and an EV to EBITDA ratio of 31.80, which are both substantially above the industry average. Additionally, the return on equity (ROE) stands at a mere 2.19%, raising concerns about profitability relative to shareholder equity.
In comparison to its peers, HLV's valuation metrics are alarming. For instance, Indian Hotels Co has a PE ratio of 61.02 and an EV to EBITDA of 34.87, while ITC Hotels shows a PE of 62.61 and an EV to EBITDA of 35.53, both of which are still lower than HLV's ratios. The company's stock performance has also lagged significantly, with a year-to-date return of -46.00%, contrasting sharply with the Sensex's gain of 8.72% over the same period. This combination of high valuation ratios and poor stock performance solidifies the view that HLV is overvalued in the current market context.