Apeejay Surrendra Park Hotels
Stock Snapshot
Price Performance
Vista Outlook
Basis of our Recommendation
Apeejay Surrendra Park Hotels is navigating a complex landscape characterized by a dual-engine growth strategy focused on hotel portfolio expansion and the scaling of its Flurys retail brand. Management's commitment to an asset-light model aims to enhance margins and capital efficiency, which is crucial given the current margin pressures stemming from rising input costs and geopolitical uncertainties. Vista's financial outlook reflects moderated revenue growth expectations, with a target price of INR 126.86 for the next 12 months, supported by a disciplined capital allocation strategy and a robust pipeline of new properties. The hospitality sector's recovery, driven by domestic travel demand and improving pricing power, aligns with management's optimistic long-term vision. However, execution risks related to rapid expansion and potential market oversupply remain critical watchpoints. Over the next 12-24 months, the company must effectively manage these risks while capitalizing on opportunities in high-growth segments such as wellness and destination weddings, which could bolster revenue and enhance its competitive position in the fragmented hospitality market
Why We Like This Stock
- Management's asset-light model is expected to enhance margins and capital efficiency
- Strong domestic travel demand and a robust pipeline of new properties support revenue growth
- Expansion into high-growth segments like wellness and destination weddings presents significant opportunities
Things To Watch Out For
- Rising input costs and geopolitical uncertainties are exerting pressure on margins
- Execution risks associated with rapid expansion of the Flurys brand could impact operational efficiency
- Potential market oversupply may challenge pricing power and occupancy rates
Key Parameters
Financial Snapshot
View Technicals Analysis →| Actuals | Forecast | ||||
|---|---|---|---|---|---|
| FY24 | FY25 | FY26 | FY27 | FY28 | |
| Revenue (Cr.) | 579 | 631 | 707 | 718 | 779 |
| Profit Before Tax (Cr.) | 89 | 148 | 120 | 117 | 128 |
| PBT Margin | 15.4% | 23.5% | 16.9% | 16.3% | 16.4% |
| Net Profit (Cr.) | 75 | 122 | 94 | 92 | 101 |
| Earnings Per Share | 3.5 | 5.7 | 4.4 | 4.3 | 4.7 |
Analyst Recommendations
| Broker | Recommendation | Target Price | Date |
|---|---|---|---|
| Prabhudas Liladhar | ▲ Buy | 156 | 11-Sep-2026 |
| Moneycontrol | ▲ Overweight | nan | 27-Aug-2026 |
| IDBI Capital | ▲ Buy | 138 | 19-Aug-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.