Understanding the Current Rating
The Strong Sell rating assigned to Apeejay Surrendra Park Hotels Ltd indicates a cautious stance for investors, signalling that the stock is expected to underperform relative to the broader market and its peers. This recommendation is based on a comprehensive evaluation of four key parameters: Quality, Valuation, Financial Trend, and Technicals. Each of these factors contributes to the overall assessment of the company’s investment appeal.
Quality Assessment
As of 13 February 2026, the company’s quality grade is considered average. While Apeejay Surrendra Park Hotels Ltd has demonstrated some growth in net sales, with an annualised rate of 10.79% over the past five years, operating profit growth has been more modest at 7.74%. This indicates moderate operational efficiency but also highlights challenges in scaling profitability. The company’s return on capital employed (ROCE) stands at 9.9%, which is below the threshold typically favoured by investors seeking robust capital returns. This middling quality score reflects a business that is stable but not excelling in generating superior returns on invested capital.
Valuation Considerations
The valuation grade for Apeejay Surrendra Park Hotels Ltd is expensive. Despite trading at a discount relative to its peers’ historical valuations, the stock’s enterprise value to capital employed ratio is 2, which suggests a premium valuation in the context of its financial performance. The company’s price-to-earnings-to-growth (PEG) ratio is notably high at 4.1, signalling that the market may be pricing in growth expectations that are not fully supported by current earnings trends. This expensive valuation, combined with subdued profit growth, warrants caution from investors.
Financial Trend Analysis
The financial trend for Apeejay Surrendra Park Hotels Ltd is negative. The latest six-month results ending December 2025 reveal a decline in profit after tax (PAT), which has contracted by 29.90% to ₹41.29 crores. Operating profit to interest coverage ratio has dropped to a low of 6.99 times, while interest expenses have risen to ₹10.11 crores, indicating increased financial strain. Over the past year, the stock has delivered a return of -23.68%, underperforming the BSE500 index across multiple time frames including one year, three years, and three months. These trends highlight ongoing challenges in profitability and financial health.
Technical Outlook
From a technical perspective, the stock is rated as mildly bearish. Recent price movements show a 2.2% decline on the latest trading day, with a one-month return close to flat at -0.04%, and a three-month return of -11.39%. The six-month and year-to-date returns are also negative, at -15.57% and -5.44% respectively. These indicators suggest a lack of upward momentum and potential resistance to price recovery in the near term.
Here’s How the Stock Looks Today
As of 13 February 2026, Apeejay Surrendra Park Hotels Ltd remains a small-cap player in the Hotels & Resorts sector, facing headwinds in both operational and financial performance. The company’s long-term growth has been modest, with net sales and operating profit growing at annual rates of 10.79% and 7.74% respectively over five years. However, recent results show a contraction in profitability and increased interest costs, which weigh heavily on the financial trend assessment.
The stock’s valuation appears stretched relative to its earnings growth prospects, with a PEG ratio of 4.1 indicating that investors may be paying a premium for growth that is not currently materialising. Technical indicators reinforce a cautious stance, with the stock underperforming key benchmarks and showing bearish tendencies in price action.
Investors should interpret the Strong Sell rating as a signal to approach Apeejay Surrendra Park Hotels Ltd with caution. The combination of average quality, expensive valuation, negative financial trends, and weak technicals suggests limited upside potential and elevated risk in the current market environment.
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Implications for Investors
For investors considering Apeejay Surrendra Park Hotels Ltd, the current rating and underlying data suggest a prudent approach. The Strong Sell recommendation reflects concerns about the company’s ability to generate sustainable returns and maintain financial stability in the near term. While the company operates in the Hotels & Resorts sector, which can offer cyclical opportunities, the present fundamentals and technical outlook do not support a positive investment thesis.
Investors seeking exposure to this sector may wish to explore alternatives with stronger financial trends, more attractive valuations, and better technical momentum. Monitoring the company’s future earnings reports and operational developments will be essential to reassess its investment potential over time.
Summary
In summary, Apeejay Surrendra Park Hotels Ltd’s Strong Sell rating by MarketsMOJO, last updated on 14 November 2025, is grounded in a thorough analysis of current data as of 13 February 2026. The stock’s average quality, expensive valuation, negative financial trends, and bearish technical signals collectively justify this cautious stance. Investors should carefully weigh these factors before considering any position in the stock.
Market Performance Snapshot
As of 13 February 2026, the stock’s recent performance includes:
- One-day decline of 2.20%
- One-week gain of 0.83%
- One-month return near flat at -0.04%
- Three-month decline of -11.39%
- Six-month decline of -15.57%
- Year-to-date return of -5.44%
- One-year return of -23.68%
These figures underscore the stock’s recent struggles and reinforce the rationale behind the current rating.
Company Financial Highlights
The latest six-month financial results ending December 2025 reveal:
- Profit after tax (PAT) of ₹41.29 crores, declining by 29.90%
- Operating profit to interest coverage ratio at a low 6.99 times
- Interest expenses at a high ₹10.11 crores
These metrics highlight the financial pressures facing the company and contribute to the negative financial trend rating.
Valuation and Peer Comparison
Despite the stock trading at a discount compared to its peers’ average historical valuations, the company’s valuation remains expensive relative to its earnings growth. The PEG ratio of 4.1 suggests that the market is pricing in growth expectations that are not currently being realised, which adds to the risk profile for investors.
Technical Analysis
The mildly bearish technical grade reflects the stock’s recent price weakness and lack of positive momentum. The downward trend over the past six months and one year, combined with negative returns across multiple time frames, signals caution for traders and investors alike.
Overall, the comprehensive analysis supports the Strong Sell rating, advising investors to consider alternative opportunities or maintain a defensive stance with respect to Apeejay Surrendra Park Hotels Ltd.
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