Is Vikram Kamats overvalued or undervalued?

As of 7 August 2025, the valuation grade for Vikram Kamats has moved from fair to attractive, indicating a positive shift in its valuation outlook. The company appears to be undervalued, especially when considering its PE ratio of 91.49, which is significantly higher than its peers. For instance, Indian Hotels Co has a PE of 62.15, and ITC Hotels stands at 69.92, both categorized as very expensive. Additionally, Vikram Kamats has an EV to EBITDA ratio of 18.61, compared to Indian Hotels Co's 36.58, further supporting the undervaluation thesis.
Despite a challenging year-to-date performance of -20% compared to the Sensex's 3.18%, Vikram Kamats has shown strong long-term returns, with a 5-year return of 282.17%. The company's dividend yield is relatively low at 0.43%, and its ROE and ROCE are also modest at 1.34% and 2.16%, respectively. Overall, the combination of its attractive valuation grade and favorable comparisons with peers suggests that Vikram Kamats is currently undervalued in the leisure services industry.