Apeejay Surrendra Park Hotels
Stock Snapshot
Price Performance
Vista Outlook
View Technicals Analysis →Basis of our Recommendation
Apeejay Surrendra Park Hotels (ASPHL) is navigating a transformative phase, shifting from traditional hospitality to a diversified lifestyle ecosystem. Management's focus on expanding its hotel portfolio to 6,635 keys by FY30 and scaling the Flurys brand nationally is pivotal for future revenue growth. Despite achieving INR 700 crore in FY26, ASPHL faces near-term margin pressures due to increased labor costs and execution risks associated with its ambitious capital expenditure plans. However, the company's strategy to enhance operational efficiency through digital transformation and AI-driven revenue management is expected to support margin recovery. Vista's financial outlook reflects stable revenue growth aligned with historical performance, although margins are anticipated to remain under pressure in the short term. The hospitality sector's improving pricing power and strong domestic demand provide a favorable backdrop, despite geopolitical challenges. Over the next 12-24 months, ASPHL's key opportunities include leveraging its integrated real estate model and expanding the Flurys brand, while watchpoints include execution risks and potential margin volatility. Overall, ASPHL's strategic initiatives position it well for long-term growth, with a target price reflecting a modest upside from current valuations
Why We Like This Stock
- Management's aggressive expansion strategy aims to significantly increase hotel keys and enhance the Flurys brand, driving future revenue growth
- The hospitality sector's improving pricing power and strong domestic demand create a favorable environment for ASPHL's growth initiatives
- Operational efficiency improvements through digital transformation and AI-driven revenue management are expected to support margin recovery
Things To Watch Out For
- Near-term margin pressures due to increased labor costs and execution risks associated with the capital expenditure pipeline
- Geopolitical tensions may continue to impact occupancy rates and overall demand in the hospitality sector
- The company's ambitious growth plans may face challenges in execution, potentially affecting short-term performance
Key Parameters
Financial Snapshot
| Actuals | Forecast | ||||
|---|---|---|---|---|---|
| FY24 | FY25 | FY26 | FY27 | FY28 | |
| Revenue (Cr.) | 579 | 631 | 707 | 719 | 814 |
| Profit Before Tax (Cr.) | 89 | 148 | 120 | 111 | 133 |
| PBT Margin | 15.4% | 23.5% | 1694.8% | 15.4% | 16.3% |
| Net Profit (Cr.) | 75 | 122 | 94 | 88 | 105 |
| Earnings Per Share | 3.5 | 5.7 | 4.4 | 4.1 | 4.9 |
Analyst Recommendations
| Broker | Recommendation | Target Price | Date |
|---|---|---|---|
| IDBI Capital | ▲ Buy | 154 | 01-Jun-2026 |
| Prabhudas Liladhar | ▲ Buy | 168 | 01-Jun-2026 |
Company Overview
Show Company Profile
Apeejay Surrendra Park Hotels Limited owns and operates hotels in India. The company operates hotels under THE PARK, THE PARK Collection, Zone by The Park, Zone Connect by The Park, and Stop by Zone brand names. It also operates restaurants, night clubs, bars, cafes, and kiosks under the Flurys brand name. The company was formerly known as Budget Hotels Limited and changed its name to Apeejay Surrendra Park Hotels Limited in March 2004. Apeejay Surrendra Park Hotels Limited was founded in 1967 and is based in New Delhi, India.