Key Events This Week
2 Feb: Stock opens at Rs.121.70 amid Sensex decline
3 Feb: Sharp 5.30% rally to Rs.128.15 on positive market momentum
4 Feb: Valuation shifts to “very expensive” amid market volatility
5 Feb: Q3 FY26 results reveal strong revenue growth but profit decline
6 Feb: Week closes at Rs.125.80, up 3.54% for the week
2 February: Modest Start Despite Sensex Weakness
The week began with Apeejay Surrendra Park Hotels Ltd opening at Rs.121.70, a slight increase of 0.16% from the previous close. This came against a backdrop of a 1.03% decline in the Sensex, which closed at 35,814.09. The stock’s resilience amid broader market weakness suggested early investor interest, albeit on low volume of 9,578 shares, indicating cautious positioning ahead of anticipated corporate developments.
3 February: Strong Rally on Positive Market Sentiment
On 3 February, the stock surged 5.30% to close at Rs.128.15, marking the week’s highest close. This sharp gain coincided with a robust 2.63% rally in the Sensex, which ended at 36,755.96. The volume more than doubled to 16,445 shares, reflecting increased buying interest. The price action suggested that investors were responding favourably to sector momentum and possibly positioning ahead of the company’s upcoming valuation reassessment and earnings release.
4 February: Valuation Shifts Amid Market Volatility
Apeejay Surrendra Park Hotels Ltd’s valuation profile underwent a significant shift on 4 February, as the company moved from an “expensive” to a “very expensive” rating. The price-to-earnings (P/E) ratio rose to 30.77, well above peer averages, while the price-to-book value (P/BV) ratio increased to 2.09. Enterprise value multiples such as EV/EBITDA at 13.45 and EV/EBIT at 19.74 further underscored the premium pricing. Despite this, the stock edged up 0.43% to Rs.128.70 on relatively low volume of 6,258 shares, as investors weighed the implications of these elevated multiples amid ongoing market volatility.
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5 February: Q3 FY26 Results Show Revenue Growth but Profit Pressure
The company reported its Q3 FY26 results on 5 February, revealing strong revenue growth that contrasted with a decline in profitability. The stock reacted negatively, falling 3.30% to Rs.124.45 on heavy volume of 32,919 shares. Rising costs and margin pressures were cited as key factors behind the profit decline, despite operational improvements. This mixed earnings outcome contributed to the stock’s pullback after earlier gains, reflecting investor caution amid elevated valuation concerns.
6 February: Recovery and Week Close Above Opening Levels
On the final trading day of the week, Apeejay Surrendra Park Hotels Ltd rebounded 1.08% to close at Rs.125.80, recovering some losses from the previous day. The Sensex also gained modestly by 0.10%, closing at 36,730.20. Volume remained elevated at 24,699 shares, indicating sustained investor interest. The stock’s weekly performance of +3.54% notably outperformed the Sensex’s +1.51%, suggesting that despite short-term profit concerns, the market retains some confidence in the company’s longer-term prospects.
| Date | Stock Price | Day Change | Sensex | Day Change |
|---|---|---|---|---|
| 2026-02-02 | Rs.121.70 | +0.16% | 35,814.09 | -1.03% |
| 2026-02-03 | Rs.128.15 | +5.30% | 36,755.96 | +2.63% |
| 2026-02-04 | Rs.128.70 | +0.43% | 36,890.21 | +0.37% |
| 2026-02-05 | Rs.124.45 | -3.30% | 36,695.11 | -0.53% |
| 2026-02-06 | Rs.125.80 | +1.08% | 36,730.20 | +0.10% |
Key Takeaways
Valuation Premium: Apeejay Surrendra Park Hotels Ltd’s elevated P/E of 30.77 and P/BV of 2.09 place it in the “very expensive” category relative to peers, signalling that the market is pricing in strong future growth or operational improvements despite current profitability challenges.
Mixed Financial Performance: The Q3 FY26 results highlighted robust revenue growth but a decline in profits due to rising costs, which tempered investor enthusiasm and led to a midweek price correction.
Outperformance vs Sensex: The stock’s 3.54% weekly gain outpaced the Sensex’s 1.51%, reflecting selective investor interest amid broader market volatility and sector-specific dynamics.
Market Sentiment and Risk: The company’s Mojo Score of 21.0 and “Strong Sell” grade underscore heightened caution, emphasising the risk of overvaluation and the need for operational improvements to justify current price levels.
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Conclusion
The week for Apeejay Surrendra Park Hotels Ltd was characterised by a notable valuation re-rating and a mixed earnings report that together shaped investor sentiment. While the stock demonstrated resilience and outperformed the Sensex with a 3.54% gain, the elevated valuation multiples and profit pressures highlight underlying risks. The company’s premium pricing suggests that the market is banking on future growth and operational improvements, yet current returns on capital and dividend yield remain subdued. Investors should remain attentive to forthcoming developments and sector trends as the Hotels & Resorts industry continues to navigate a complex recovery environment.
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