Is Roopshri Resorts overvalued or undervalued?

As of 1 September 2025, Roopshri Resorts has moved from a risky to a very expensive valuation grade. The company is currently overvalued, indicated by a PE ratio of 40.50, an EV to EBIT of 32.31, and an EV to Sales ratio of 22.13. These figures suggest that the stock is trading at a premium compared to its earnings and sales potential.
In comparison to its peers, Roopshri Resorts' valuation metrics are notably high. For instance, Indian Hotels Co has a PE of 63.47, while ITC Hotels shows a PE of 72.91, both of which are higher, yet Roopshri's ratios still reflect an expensive valuation within the sector. Additionally, the company's return on equity (ROE) stands at a mere 2.98%, which raises concerns about its profitability relative to its market price. Despite recent strong stock performance, with a 1-year return of 50.77% compared to a -2.43% return for the Sensex, the high valuation metrics suggest that Roopshri Resorts may not sustain this premium in the long term.