Is Roopshri Resorts overvalued or undervalued?

As of 17 October 2025, Roopshri Resorts has moved from a risky to a very expensive valuation grade. The company is currently overvalued, with a PE ratio of 94.54, an EV to EBIT of 34.18, and a ROE of 2.89%. In comparison to its peers, Indian Hotels Co has a PE ratio of 61.42 and EV to EBITDA of 36.15, while ITC Hotels shows a PE of 64.65 and EV to EBITDA of 36.76, indicating that Roopshri Resorts is significantly more expensive than these competitors.
Despite its high valuation, Roopshri Resorts has shown impressive stock performance, with a year-to-date return of 43.73%, far exceeding the Sensex's 7.44% during the same period. However, the company's low ROCE of 0.14% raises concerns about its profitability relative to its high valuation, reinforcing the conclusion that it is overvalued in the current market.