Is Lords Ishwar overvalued or undervalued?

As of 10 November 2025, the valuation grade for Lords Ishwar has moved from fair to very expensive. The company is currently considered overvalued, particularly given its high PE ratio of 78.52, which significantly exceeds peers like Indian Hotels Co at 59.41 and ITC Hotels at 61.34. Additionally, the EV to EBITDA ratio stands at 17.05, which is also elevated compared to the industry averages.
In terms of performance metrics, Lords Ishwar's ROCE and ROE are notably low at 0.52% and 0.29%, respectively, indicating inefficiencies in generating returns relative to its capital and equity. While the company has shown impressive long-term stock performance with a 5-year return of 511.99%, recent trends reveal a decline of 13.00% year-to-date, contrasting with a 6.91% gain in the Sensex. This suggests that despite historical growth, the current valuation does not align with its financial performance, reinforcing the conclusion that Lords Ishwar is overvalued.