Stock Price Movement and Market Context

On 9 Mar 2026, Apeejay Surrendra Park Hotels Ltd’s share price fell by 2.66%, closing at Rs.115.35, which is the lowest level ever recorded for the stock. The intraday low touched Rs.115.35, representing a 2.74% decline from the previous close. This drop occurred despite the broader Sensex index falling by 2.90% on the same day, indicating a slightly better relative performance on a single-day basis. However, the stock underperformed its Hotels, Resorts & Restaurants sector, which declined by 3.33%.

The stock has been on a downward trajectory for two consecutive days, losing 2.61% cumulatively during this period. It is currently trading below all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages, signalling a persistent bearish trend.

Comparative Performance Over Various Periods

Examining the stock’s performance over longer durations reveals a consistent pattern of underperformance relative to the Sensex. Over the past week, Apeejay Surrendra Park Hotels Ltd declined by 3.79%, compared to the Sensex’s 4.49% fall. The one-month return stands at -8.88%, closely mirroring the Sensex’s -8.84%. However, over three months, the stock’s decline of 11.87% notably exceeds the Sensex’s 9.49% drop.

More strikingly, the stock has delivered a negative return of 23.77% over the last year, while the Sensex gained 3.09% during the same period. Year-to-date, the stock is down 13.94%, underperforming the Sensex’s 10.08% decline. Over three and five years, the stock has effectively stagnated with 0.00% returns, whereas the Sensex has appreciated by 28.13% and 50.18% respectively. The ten-year performance gap is even more pronounced, with Apeejay Surrendra Park Hotels Ltd showing no growth against the Sensex’s 209.08% rise.

Financial Metrics and Valuation Insights

The company’s financial performance over the past five years has shown modest growth, with net sales increasing at an annualised rate of 10.79% and operating profit growing at 7.74%. Despite this, the latest six-month period ending December 2025 recorded a decline in profit after tax (PAT) by 29.90%, amounting to Rs.41.29 crores. Operating profit to interest coverage ratio for the quarter stands at a low 6.99 times, while interest expenses reached a quarterly high of Rs.10.11 crores.

Return on Capital Employed (ROCE) is reported at 9.9%, which, combined with an enterprise value to capital employed ratio of 1.8, suggests a relatively expensive valuation. The stock currently trades at a discount compared to its peers’ average historical valuations, reflecting market caution.

Long-Term and Recent Performance Discrepancies

While the stock’s profits have risen by 8.3% over the past year, the share price has declined by 23.77%, resulting in a price-to-earnings-to-growth (PEG) ratio of 3.7. This disparity highlights a disconnect between earnings growth and market valuation. The stock’s underperformance extends across multiple time frames, including the last three months, one year, and three years, relative to the BSE500 index.

Debt and Capital Structure

On a positive note, the company maintains a strong ability to service its debt obligations, with a low Debt to EBITDA ratio of 0.75 times. This indicates manageable leverage levels despite the challenging market environment.

Mojo Score and Rating Update

MarketsMOJO assigns Apeejay Surrendra Park Hotels Ltd a Mojo Score of 23.0, categorising it as a Strong Sell. This rating was upgraded from Sell on 21 Jul 2025, reflecting a deterioration in the company’s outlook. The Market Cap Grade is 3, indicating a mid-tier market capitalisation within its sector.

The Strong Sell rating is driven by the company’s subdued long-term growth, negative recent profit trends, and valuation concerns. The stock’s consistent underperformance relative to sector and market benchmarks further supports this assessment.

Sectoral and Market Positioning

Within the Hotels & Resorts sector, Apeejay Surrendra Park Hotels Ltd’s share price decline of 2.66% on the latest trading day was marginally better than the sector’s 3.33% fall. However, the company’s longer-term returns lag behind sector averages, highlighting challenges in maintaining competitive positioning.

The stock’s trading below all major moving averages underscores the prevailing negative momentum and investor caution in the sector.

Summary of Key Data Points

To summarise, Apeejay Surrendra Park Hotels Ltd’s stock has reached a historic low of Rs.115.35, with a two-day cumulative decline of 2.61%. The company’s financial metrics reveal a mixed picture, with modest sales growth but declining recent profits and elevated interest costs. Valuation metrics suggest the stock is priced at a discount to peers but remains expensive relative to its capital employed.

The company’s ability to service debt remains sound, with a low Debt to EBITDA ratio of 0.75 times. Despite this, the stock’s performance over one, three, five, and ten years has been flat or negative, contrasting sharply with the broader market’s robust gains.

Overall, the stock’s current position reflects a combination of subdued growth, valuation pressures, and market sentiment within the Hotels & Resorts sector.

Limited Period Only. Get Started for only Rs. 16,999 - Get MojoOne for 2 Years + 1 Year Absolutely FREE! (72% Off) Get 72% Off →