Is Vikram Kamats overvalued or undervalued?

As of 1 September 2025, the valuation grade for Vikram Kamats has moved from fair to attractive, indicating a positive shift in its valuation outlook. The company is currently considered undervalued, particularly when compared to its peers in the leisure services industry. Key ratios include a PE ratio of 94.92, an EV to EBITDA of 16.14, and a PEG ratio of 0.00, which suggests that the stock may be undervalued relative to its growth prospects. In comparison to its peers, Vikram Kamats stands out with a higher PE ratio than Indian Hotels Co, which has a PE of 63.47, and ITC Hotels, which has a PE of 72.91, both classified as very expensive. While the company's dividend yield is relatively low at 0.42%, its return on capital employed (ROCE) and return on equity (ROE) are at 2.16% and 1.34%, respectively, which further supports the notion of undervaluation. Despite recent stock performance showing a decline of 15.33% year-to-date compared to a 2.85% gain in the Sensex, the long-term growth potential remains promising, as evidenced by a 217.5% return over the past five years.