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Aruna Hotels Limited (500016) fair value: what the stock is really worth

As of Oct 1, 2026: fair value of Aruna Hotels Limited ₹16.85, price ₹7.26, upside +132.1%, quality 32 out of 100. Calculated from audited financials with 26 valuation models and 37 quality factors, updated daily.

  1. Fair value above price? Yes
  2. Good quality? No
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Consumer Discretionary · IN

AH Thin data Sep 24, 2026

Aruna Hotels Limited

500016 · BSE

Cheap, value-trap riskThe stock looks deeply undervalued, but low quality raises value-trap risk.

✓Fair value ₹16.85 · Strongly undervalued (+132.1%)
!Quality 32/100
!Mixed Growth (revenue 5y +141.1 %/yr)
!Thin margins · 3.2% net margin (FY2026)
!High debt · negative free cash flow
!Trails peers (0/8)
!Narrow moat 12/100
!Evidence only low, so the estimate is less certain
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What runs behind every stock

26 valuation models 8 families, DCF to NCAV 37 quality factors margins, balance sheet, cashflow, debt 6 AI factors moat, what no ratio measures 2,000+ data points verified, per stock, median

69 individual criteria per stock, every one traceable See the method →

Price vs Fair Value

₹23.41 ₹3.67 Fair Value ₹16.85 May 2021 Oct 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Sep 24, 2026.

How to read this chart

60‑month range ₹3.67 – ₹23.41 · fair‑value band ₹16.85 – ₹19.10 · the ₹7.26 price screens below the ₹16.85 fair value. Dashed = 300-day average. As of Sep 24, 2026.

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Company profile

Aruna Hotels Limited engages in the hotel operation business in India. The company operates hotels and motels; inns; and resorts that provide short term lodging facilities, as well as provides accommodation in the house boats. It also operates Hotel Aruna ?

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Aruna Hotels Limited engages in the hotel operation business in India. The company operates hotels and motels; inns; and resorts that provide short term lodging facilities, as well as provides accommodation in the house boats. It also operates Hotel Aruna ? Chennai, which includes various facilities, such as rooms, restaurant, swimming pool, banquet halls, gymnasium, and business center. The company was incorporated in 1960 and is based in Chennai, India.

Stock analysis

Aruna Hotels Limited (500016) currently trades at ₹7.26, while our model-based Fair Value estimate is ₹16.85, implying the stock looks roughly 56.9% undervalued today.

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Valuation

Bull case: the Growth Earnings group reads highest at a median of ₹41.76 per share, and 9 of the 9 models we run sit above the ₹7.26 price.

Bear case: the Multiples group reads lowest at ₹15.28, and 0 of the 9 models stay below the price. Evidence for this calculation is low.

Scenario range: ₹16.85 (bear) to ₹19.10 (bull), the price of ₹7.26 sits below it. Bear and bull are the same models on cautious and optimistic assumptions, a range, not a price target.

Quality & growth

The Quality Score stands at 32/100 (below-average quality), in the Consumer Discretionary sector.

Mixed Growth: Revenue is growing, but margins or cash flow do not fully confirm the trend.

Aruna Hotels Limited reported revenue of ₹251M in FY2026 versus ₹0 in FY2022. Reported net income was ₹8.1M in FY2026.

Key figures

Market cap ₹52.1M (≈ $541K) · EPS (TTM) ₹−13.85 · Net margin 3.2% · Return on equity −20.3% · Return on assets (EBIT) −2.5% · Operating margin −129,372% · Free cash flow −₹39.0M · Net debt ₹1.2B.

Competitive moat

Our AI-assisted moat analysis scores the competitive advantage at 28 out of 100 (medium confidence).

What moves the price

The share trades about 20% below its 52-week high and 3% above its 52-week low, currently below its 200-day average.

For context, the median of 10 Consumer Discretionary peers we cover trades at 3% fair-value upside, at 132%, 500016 screens cheaper than that median.

Fair Value models

Bear ₹16.85 Fair Value ₹16.85 Bull ₹19.10
Model ⓘEach model values the company its own way (discounted cash flow, earnings, assets, dividends). The fair value above is their evidence-weighted blend, not the output of a single model. Bear ⓘBear = the cautious scenario: the same model computed with conservative anchors (lower growth, margins and valuation multiples). Together with Bull it frames a plausible valuation range, not a price target.BaseBull ⓘBull = the optimistic scenario: the same model computed with favourable anchors (higher growth, margins and valuation multiples). Together with Bear it frames a plausible valuation range, not a price target. If a model's bull case is above four times its base value, the table shows that limit with a > sign (like the overall Bull above): beyond it no assumption holds. Evidence ⓘEvidence = how well-backed THIS model's estimate is for this stock (0–100): how complete and reliable its input data are, and how well the model fits the company. The final Fair Value is an evidence-weighted blend, so better-evidenced models count more. Green ≥70, amber 50–69, grey below 50.
Highest evidence
Residual Income ₹22.35 ₹21.47 ₹21.60 68
Growth-Adj P/E ₹29.23 ₹41.76 ₹54.29 65
P/E Multiple ₹14.83 ₹19.78 ₹24.72 63
All 9 models by family
Earnings-Based
Graham-Dodd ₹6.11 ₹42.63 ₹59.82 61
Lynch FV ₹22.02 ₹31.46 ₹40.90 59
PEG = 1.0 ₹22.02 ₹31.46 ₹40.90 55
Multiples
P/E Multiple ₹14.83 ₹19.78 ₹24.72 63
P/S Multiple ₹11.46 ₹15.28 ₹19.10 58
P/B Multiple ₹11.46 ₹15.28 ₹19.10 55
Asset-Based
NCAV (Graham) ₹15.75 ₹21.10 ₹31.50 54
Economic Profit
Residual Income ₹22.35 ₹21.47 ₹21.60 68
Growth Earnings
Growth-Adj P/E ₹29.23 ₹41.76 ₹54.29 65

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Quality Score breakdown

Overall quality 32/100

Of which business quality 31 · Market factors (momentum, volatility) 32

Profitability 17
Margins and returns on capital today
Quality Growth 34
Are margins and returns improving?
Cashflow 15
Earnings quality: real cash, not paper profit
Fin. Strength 3
Balance sheet, leverage, solvency risk
Investment 68
Disciplined investing over empire-building
Low Volatility 63
Calm price path (market factor)
Momentum 24
Price trend over the last 3–12 months (market factor)
52W Momentum 12
Distance to the 52-week high (market factor)
Net Issuance 82
Share count: buybacks or dilution?

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Revenue & earnings trend

Growth Quality ⓘGrowth is valuable only when reinvestment earns attractive returns (Aswath Damodaran): sustainable growth depends on return on capital, reinvestment and efficiency. Basis: total company revenue over the periods shown on the cards (3Y/5Y/all years), not per share, so a merger can show up as a growth jump; per-share earnings growth is in the value-creation card. 38/100
Revenue is growing, but margins or cash flow do not fully confirm the trend.
Revenue growth 1 year
+6.1%
Revenue growth 3 years ⓘMeasures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump. Per-share growth (which does include buybacks) is in the value-creation card.
+133.7%
Revenue growth 5 years ⓘMeasures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump. Per-share growth (which does include buybacks) is in the value-creation card.
+141.1%
Start year 2021 (pandemic)
Revenue growth 12 years ⓘMeasures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump. Per-share growth (which does include buybacks) is in the value-creation card.
+10.2%
Profit margin (trend) ⓘOperating margin then vs now, from reported annual statements. A falling margin after a boom year is the classic peak-earnings signal: the growth rate then leans on an inflated base.
−1,153.8% (2021) → 16.1% (2026)
What shareholders gained per year ⓘWe only publish this rate when it is defensible. Reason: no profitable base year
not computed

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Compare Aruna Hotels Limited with another stock

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Peer GroupⓘHow this stock ranks against its sector: the green marker is this stock, the band is the typical 25–75% peer range, and the tick is the median. (Industry “Hotels & Resorts” was too small, so the broader sector is used.)Consumer Discretionary · 3564 stocks

Beats the sector median on 0/7 measures
Overall it trails its sector peers.
Valuation
Quality Score 32 · Bottom 25%
Fair Value upside −30.4% · Below median
Profitability
Return on assets −1.1% · Bottom 25%
Net margin (TTM) 3.2% · Below median
Growth and dividend
Revenue growth 0.0% · Below median
Dividend yield (TTM) 0.0% · Bottom 25%
Balance sheet
Debt / equity 4.18× · Highest 25%

Context: sector, industry, market

Values & ESG

Does this company touch areas you may want to avoid? The classification is inferred from sector and industry.

None of the checked exposures detected

Similar stocks

10 more Hotels & Resorts stocks, each showing price versus our Fair Value estimate.

Stock Price Fair Value vs Fair Value
CHLLTD CHLLTD ₹27.06 ₹29.77 +10%
ARUNAHTEL ARUNAHTEL ₹7.18 ₹5.05 −30%
Silver Pearl Hospitality & Luxury Spaces Limited SILVERPRL ₹4.53 ₹2.70 −40%
ALWN ALWN €11.84 €12.25 +3%
BYLOT BYLOT €1.12 €0.6300 −44%
RAJPALAYAM RAJPALAYAM ₹737.05 ₹1,586 +115%
VIRAT VIRAT ₹333.70 ₹50.40 −85%
IST Limited 508807 ₹635.00 ₹711.94 +12%
LEHAR LEHAR ₹206.90 ₹236.02 +14%
SWISSMLTRY SWISSMLTRY ₹14.28 ₹5.44 −62%

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Aruna Hotels Limited · Fair Value
₹16.85 +57%Fair Value
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Cite: Fair Value Calculator (2026). "Aruna Hotels Limited Fair Value". https://www.fairvalue-calculator.com/stock/500016

Frequently asked questions

Is Aruna Hotels Limited (500016) overvalued or undervalued?
As of Sep 24, 2026, our model estimates a fair value of ₹16.85 versus a price of ₹7.26, about +132% upside (undervalued).
What is the fair value of 500016?
Our model-based fair value for Aruna Hotels Limited is ₹16.85 (as of Sep 24, 2026), built from audited fundamentals. The current price: ₹7.26.
What is the quality score of 500016?
Aruna Hotels Limited has a Quality Score of 32/100. It measures business quality (profitability, growth, cash flow, balance-sheet strength, investment discipline, share issuance). Market factors such as price momentum and volatility do not enter the number; they are shown separately in the detail view.
What is the price target for Aruna Hotels Limited (500016)?
Our model-based price target is the fair value of ₹16.85 (as of Sep 24, 2026) from 9 valuation models. Cautious scenario ₹16.85, optimistic scenario ₹19.10. It is a calculation from audited fundamentals, not an analyst target.
What is the Aruna Hotels Limited stock forecast for 2026?
Our models put fair value at ₹16.85, about +132% upside versus a price of ₹7.26 (undervalued). Cautious scenario ₹16.85, optimistic scenario ₹19.10. The calculation is refreshed regularly with new filings.
What is the intrinsic value of Aruna Hotels Limited (500016)?
Intrinsic value and fair value mean the same thing: what the business is worth on its numbers, independent of the share price. For Aruna Hotels Limited it is ₹16.85 per share (as of Sep 24, 2026), against a price of ₹7.26. It is the blended result of 9 valuation models (cash flow, earnings, asset, dividend).
Is Aruna Hotels Limited stock overvalued or undervalued in 2026?
As of Sep 24, 2026, 500016 trades below its calculated fair value: price ₹7.26, fair value ₹16.85, a gap of about +132% (undervalued). The calculation is refreshed with each new quarterly report, so the verdict can change during the year.
Is fair value the same as the market price of 500016?
No. The price is what the market pays today (₹7.26); the fair value is what the company's own numbers justify (₹16.85). For Aruna Hotels Limited the two are ₹9.59 per share apart. That gap is exactly why we show both numbers side by side.
How much is Aruna Hotels Limited worth?
The market values Aruna Hotels Limited at about ₹52.1M (market capitalisation, as of Sep 24, 2026). Per share that is ₹7.26; our models calculate a fair value of ₹16.85 per share.
What do the bullish and bearish scenarios say about 500016?
Our models span a range for Aruna Hotels Limited: cautious scenario ₹16.85, base ₹16.85, optimistic ₹19.10 per share (as of Sep 24, 2026, price ₹7.26). The range comes from different growth and margin assumptions, not from analyst opinions.
How solid is the balance sheet of Aruna Hotels Limited (500016)?
Balance-sheet figures for Aruna Hotels Limited (as of Sep 24, 2026): return on equity −20.3%, debt of 4.18 per unit of equity. They feed the Quality Score of 32/100, which measures business quality independently of the share price.
How far is 500016 from its 52-week high?
Aruna Hotels Limited trades at ₹7.26, about 20% below its 52-week high of ₹9.07 and 3% above the low of ₹7.02 (as of Oct 1, 2026). Distance from the high says nothing about value: that is what the fair value of ₹16.85 is for.
Which stocks are comparable to Aruna Hotels Limited?
From the same area (Consumer Discretionary) we also value CHLLTD, ARUNAHTEL, Silver Pearl Hospitality & Luxury Spaces Limited, ALWN, among others. Each of them has its own fair-value calculation on this site using the same models, so the comparison is like for like.
Is Aruna Hotels Limited stock attractive at the current price?
The data as of Sep 24, 2026: price ₹7.26, calculated fair value ₹16.85 (+132%), Quality Score 32/100, from 9 models. Whether that fits your horizon and risk tolerance is your call. We provide the calculation, not investment advice.
How is the fair value of 500016 calculated?
We run Aruna Hotels Limited through 9 models from four families: discounted cash flow, earnings models, asset and balance-sheet models, and dividend models. Every model gets the same audited fundamentals; the result is the weighted average of ₹16.85, with the spread shown as a cautious and an optimistic scenario.
Is it still worth investing in stocks now?
The global stock market currently sits 14.5 % above its aggregate fair value. Aruna Hotels Limited currently trades 57 % below its own fair value, and the market average says nothing about that. An expensive market is no reason to stay out and no reason to buy everything at once: keep a broad savings plan running, buy single stocks only with money you can do without, and hold part of your money liquid while the market is high. The full picture including sectors is on is it worth investing now.
What is the share price of Aruna Hotels Limited (500016)?
The closing price on Oct 1, 2026 was ₹7.26. Our model-based fair value is ₹16.85, about +132% upside (undervalued). We carry closing prices from our data provider, not a live tick.
What should I pay attention to with Aruna Hotels Limited right now?
The large discount to fair value meets weak quality (32/100). That raises the risk this is a value trap rather than a bargain. The price is below even our cautious bear case (₹16.85). The market is more pessimistic than our downside scenario. The large gap to fair value rests on thin data (low evidence): fewer applicable models and a shorter history. Read it with extra caution. The models converge in a tight band (₹16.85 to ₹19.10), unusually little disagreement for a valuation.

Key figures of Aruna Hotels Limited

How large is the market capitalisation of Aruna Hotels Limited (500016)?
The market capitalisation of Aruna Hotels Limited is ₹52.1M (≈ $541K). The stock-market value of the whole company: share price times number of shares. It is what the market asks for the entire business today.
What are the earnings per share of Aruna Hotels Limited (500016)?
Earnings per share at Aruna Hotels Limited are ₹−13.85. Earnings per share over the last twelve months: total profit spread across every single share.
What is the net margin of Aruna Hotels Limited (500016)?
The net margin of Aruna Hotels Limited is 3.2% (fiscal year 2026). How much of every unit of revenue ends up as profit. 10% means 10 cents of profit per dollar of sales.
What is the return on equity of Aruna Hotels Limited (500016)?
The return on equity (ROE) of Aruna Hotels Limited is −20.3% (last twelve months). Profit relative to shareholders' equity, how efficiently the company works with its owners' money.
What is the EBIT return on assets of Aruna Hotels Limited (500016)?
On an EBIT basis the return on assets of Aruna Hotels Limited is −2.5% (avg 5y). Operating profit (EBIT) relative to everything the company owns, as a multi-year average. It describes the business model rather than one good or bad year.
What is the operating margin of Aruna Hotels Limited (500016)?
The operating margin of Aruna Hotels Limited is −129,372% (last twelve months). Profit from the core business (before interest and taxes) relative to revenue.
How much free cash flow does Aruna Hotels Limited (500016) generate?
The free cash flow of Aruna Hotels Limited is −₹39.0M (fiscal year 2026). The cash truly left after running and investing in the business, this is what pays dividends and buybacks.
How much net debt does Aruna Hotels Limited (500016) carry?
The net debt of Aruna Hotels Limited is ₹1.2B (fiscal year 2026). Debt minus cash on hand. The note shows how many years of free cash flow could in theory pay it off.
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