Is Saj Hotels overvalued or undervalued?

As of 10 November 2025, the valuation grade for Saj Hotels has moved from fair to expensive. The company is currently considered overvalued based on its financial metrics. Key ratios include a PE Ratio of 26.60, an EV to EBIT of 18.76, and a Price to Book Value of 0.87, which suggest that the stock may not justify its current price given its earnings potential and asset valuation.
In comparison with peers, Saj Hotels has a lower PE Ratio than Indian Hotels Co, which stands at 59.41, and ITC Hotels, which has a PE of 61.34, both of which are categorized as very expensive. However, despite these comparisons, Saj Hotels' valuation still appears excessive relative to its financial performance, particularly with a ROCE of only 4.49% and a ROE of 3.26%. Notably, while Saj Hotels has outperformed the Sensex with a year-to-date return of 23.24% compared to the Sensex's 8.16%, this does not mitigate the concerns regarding its current overvaluation.