Apeejay Surrendra Park Hotels Limited

Consumer Cyclical — Lodging · NSE

₹106.85+₹4.78 (+4.68%)

DalalBaazaar Score

55 / 100

🟡 Moderate

Verdict

CAUTION

Risk

Moderate

Driven by negative free cash flow, micro-cap size, which brings thin liquidity, falling profits.

In simple words: The business is earning a fairly low return on the money invested in it, though profits are falling even as sales grow. Cash generation is currently the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 7:48 pm

Understanding the Business

Company site ↗

The 60-second version of Apeejay Surrendra Park Hotels Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

Apeejay Surrendra Park Hotels Limited owns, operates, and manages 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 brands.

IndustryLodging

SectorConsumer Cyclical

Employees2,363

Annual revenue₹687 Cr

How does it make money?

Turns over ₹687 Cr a year. Of every ₹100 of sales, about ₹10 reaches shareholders as profit, with ₹32 left at the operating level before interest, tax and depreciation. Each of its 2,363 employees supports ₹29.1 lakh of revenue a year, the signature of a people-led business.

Revenue / employee₹29.1 lakh

Who are its competitors?

The closest listed comparisons in its industry are MARUTI SUZUKI INDIA LTD., TITAN COMPANY LIMITED, TRENT LTD, AVENUE SUPERMARTS LIMITED. These are the companies its valuation and returns are measured against elsewhere in this report.

Compared side by side in Peers ↓

What is its competitive advantage?Little sign of one

Returns on capital of 7.8% are at or below what the capital likely costs. That is the financial pattern of a business competing largely on price, where advantage has to come from execution rather than position.

Peer median ROE25.9%

What is the outlook?

3 analysts covering the stock expect revenue to grow about 18.3% and earnings to grow about 30.2% in the year to 2028. These are estimates by people who follow the company, not a forecast for the wider industry.

Est. revenue growth+18.3%

Est. earnings growth+30.2%

Analysts3

What has been driving growth?

Growth has come mainly from selling more, rather than from keeping more of each sale. Over 3 years revenue moved +38% while net margin moved -1% relative to itself. What this cannot tell you is which products, customers or geographies did the work — that lives in the segment disclosures of the annual report.

Revenue effect+38%

Margin effect-1%

DalalBaazaar Score

55/ 100

Moderate

Weighted across six categories. Every point is explained below.

• Beta of 0.87 — moves roughly with the market
✗ Micro Cap: thinner liquidity and sharper drawdowns are normal
✗ Negative free cash flow means dependence on external funding

Quality vs. Valuation

Company Quality

58/ 100

Average

How good the business is, ignoring the share price entirely.

Valuation

55/ 100

Fair

What you are being asked to pay, ignoring how good the business is.

A reasonable business at a reasonable price — neither the quality nor the valuation stands out in either direction.

Historical Valuation

Current P/E

35.7x

3Y Median

38.5x

34 monthly readings · mean 45.5x · range 24.6x–93.6x

Sector Median

69.2x

median of 4 sector peers

🟡Currently trading close to its 3y median of 38.5x — the market is paying about what it usually pays for this company.

🟢Against its sector it trades 48% below the peer median of 69.2x.

vs. its own history

Fair

38.5x median over 34 months · -7%

vs. sector peers

Cheap

69.2x median of 4 peers · -48%

vs. generic bands

Expensive

Above 35x

EV/EBITDA

12.1x

PEG

3.25

What's Good / What's Bad

🟢 What's Going Well3

Debt is being paid down
Total debt is down 40% over 3 years.
Very low debt
Debt/Equity of 0.28x leaves the balance sheet with plenty of headroom.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention2

Return on equity is falling
ROE has dropped from 8.7% to 4.9% — each rupee of shareholder capital earns less than it did.
Return on capital is falling
ROCE has declined from 11.2% to 7.8% — often a sign of competition or overexpansion.

Red Flags

5 items require attention · 1 high · 4 watch

🔴Inventory building faster than salesFinancial
Inventory up 746% against revenue up 38% — stock may not be moving.
🟡Interest coverage is deterioratingFinancial
Cover has fallen from 10.1x to 5.6x.
🟡Free cash flow is negativeFinancial
Free cash flow was -₹113 Cr in the latest year.
🟡Margins are compressingFinancial
EBITDA margin is down 2.6 points over 3 years.
🟡Receivables growing faster than salesFinancial
Receivables up 59% against revenue up 38% — sales are being booked faster than they are collected.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Deleveraging frees up earnings
Debt is down 40% over 3 years. Every rupee of interest not paid drops to the bottom line, so profit can grow even if revenue does not.
Cheaper than its peers
It trades 48% below the sector median. Either the market sees a problem the numbers do not show, or the discount closes.
Earnings have proved durable
Profitable in every one of the last 4 reported years. Consistency lowers the risk that any single bad year is structural rather than cyclical.

🔴 Bear CaseWhat could go wrong?

Margins are being competed away
EBITDA margin has fallen from 34.3% to 31.7%. If the trend continues, profit falls even on flat sales — and margin decline rarely reverses quickly.
Sales are being booked faster than collected
Receivables are up 59% against revenue up 38%. If customers keep taking longer to pay, reported profit will not turn into cash — and write-offs follow if some never do.
Returns on shareholder capital are falling
ROE has dropped from 8.7% to 4.9%. Each rupee of equity earns less than it did, so profit growth increasingly depends on raising more capital rather than on the existing base working harder.
Size brings its own risk
Micro Cap businesses are thinly traded, so exits are harder in a falling market and single events move the price more than they would for a larger company.

🟡 Key Things to WatchMeasurable tripwires, set against where this company stands today

1Revenue growth stays above 9% a year✓ 11.5% CAGR
Latest reported year was 8.1%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 30%✓ 31.7%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Free cash flow remains positive✗ -₹113 Cr
Profit that never becomes cash eventually stops being profit.
4Debt / EBITDA stays below 2x✓ 1.7x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
5ROCE stays above 8%✗ 7.8%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

6 / 12 checks passed

✗ Strong return on equity (ROE ≥ 15%)
✗ Strong return on capital employed (ROCE ≥ 15%)
✗ Healthy net margin (≥ 10%)
✗ Generates positive free cash flow
✓ Manageable leverage (Debt/Equity < 1.0)
✓ Adequate short-term liquidity (Current Ratio ≥ 1.0)
✓ Revenue growing year-over-year
✗ Profit growing year-over-year
✓ Not trading at an extreme valuation (P/E < 40x)
✓ Not buying right at the 52-week high
✓ Analyst consensus isn't majority-sell
✗ Short-term technical trend isn't bearish

Price history

Quick Metrics

2 good · 5 neutral · 4 weak

Market Cap

₹2,280 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

35.7x

Fair

Fairly valued against the generic band

P/B Ratio

1.69x

Fair

Moderate premium to the company's book value

EPS (TTM)

₹2.99

Profitable

Profitable on a per-share basis

ROE

4.9%

Weak

Weak capital efficiency

ROCE

7.8%

Weak

Low return on total capital employed

Debt/Equity

0.28x

Low

Conservative leverage

Revenue Growth (YoY)

8.1%

Modest

Modest growth

Profit Growth (YoY)

-14.3%

Falling

Profits are shrinking

Dividend Yield

0.70%

Modest

Small cash return — most of the return has to come from the price

Free Cash Flow

-₹113 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

P/E (Forward)

17.7x

Improving

Below the trailing multiple — the street expects earnings to grow into the price

Operating Margin

15.5%

Good

Healthy core-business profitability

Net Margin

8.9%

Average

Average bottom-line conversion

Current Ratio

1.23

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.87

Market-like

Moves roughly in line with the market

52W Range Position

20%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

104.3 / 110.4

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

53.7

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹497 Cr	₹561 Cr	₹611 Cr	₹687 Cr	+11.5%
EBITDA	₹170 Cr	₹205 Cr	₹213 Cr	₹218 Cr	+8.6%
EBITDA Margin	34.3%	36.5%	34.9%	31.7%	—
PAT (Net Profit)	₹48 Cr	₹69 Cr	₹84 Cr	₹66 Cr	+11.0%
EPS	₹2.25	₹3.82	₹3.92	₹3.08	+11.0%
ROE	8.7%	5.7%	6.5%	4.9%	—
ROCE	11.2%	11.7%	10.9%	7.8%	—
Total Debt	₹617 Cr	₹100 Cr	₹168 Cr	₹373 Cr	-15.5%
Free Cash Flow	₹134 Cr	₹49 Cr	₹7 Cr	-₹113 Cr	—

🟢 Revenue has grown at 11.5% a year over 3 years.

🟢 EBITDA has grown at 8.6% a year over 3 years.

🔴 EBITDA Margin has fallen from 34.3% to 31.7% over 3 years (-2.6 pts).

🟢 PAT (Net Profit) has grown at 11.0% a year over 3 years.

🟢 EPS has grown at 11.0% a year over 3 years.

🔴 ROE has fallen from 8.7% to 4.9% over 3 years (-3.8 pts).

🔴 ROCE has fallen from 11.2% to 7.8% over 3 years (-3.4 pts).

🟢 Total Debt has shrunk at 15.5% a year over 3 years.

🔴 Free Cash Flow has turned negative, from ₹134 Cr to -₹113 Cr.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹2,054 Cr

Total Liabilities

₹712 Cr

Cash & Equivalents

₹24 Cr

Operating Cash Flow

₹182 Cr

Capex

-₹295 Cr

Shareholding (proxy)

Institutional Holding

8.7%

Insider Holding

72.3%

Corporate Actions

Dividend Rate

₹0.75

Ex-Dividend Date

18 Sept 2026

Analyst Consensus

Recommendations

2 Buy · 1 Hold · 0 Sell

Target Price (Mean)

₹153.5

+43.7% vs CMP

Target Range

₹138 – ₹169

Peer Comparison

Company	P/E	ROE
MARUTI SUZUKI INDIA LTD.	25.2x	13.4%
TITAN COMPANY LIMITED	68.5x	36.7%
TRENT LTD	87.2x	25.9%
AVENUE SUPERMARTS LIMITED	69.9x	12.7%

Recent News

1 positive1 mixed4 general

Apeejay Surrendra Park Hotels Stock Signals to Watch This Week

Univest, 25 Sept

PARKHOTELS Forecast — Price Target — Prediction for 2027

TradingView, 25 JunAnalyst view

🟡Mixed / dependsBroker commentary — an opinion about the price rather than new information about the business.

Apeejay Surrendra Park Hotels (NSEI:PARKHOTELS) Stock Price

Simply Wall Street, 22 Jun

Buy Apeejay Surrendra Park Hotels; target of Rs 168: Prabhudas Lilladher

Moneycontrol.com, 01 Jun

Apeejay Surrendra Park Hotels Ltd. Share Price Live Today

CNBC TV18, 03 Jan

Apeejay Surrendra Park Hotels Q1FY27 Results: Revenue up, margins dip to 28.12%

scanx.trade, 09 SeptResults

🟢Potentially positiveReported improvement. Check whether it came from volume, price or a one-off item before treating it as a trend.

Watch Items

Cross-check against the company's latest quarterly filing / investor presentation before acting.

DalalBaazaar Thesis

StrongFinancial Health · Growth

MiddlingBusiness Quality · Valuation

WeakProfitability · Risk

Points for each in the Score ↑

Unremarkable in both directions

A reasonable business at a reasonable price. Nothing here is alarming and nothing is compelling, which usually means the decision rests on things this data cannot see — the industry's direction, management's intent, and what else is available to you. 1 high-severity red flag sits above this conclusion and should be read first.

2 of 5 tripwires tripped — Free cash flow remains positive; ROCE stays above 8% · see Key things to watch ↑