Apeejay Surrendra Park Hotels Ltd Falls to 52-Week Low of Rs.125.55

Stock Performance and Market Context

On 12 Jan 2026, Apeejay Surrendra Park Hotels Ltd recorded its lowest price in the past year at Rs.125.55, representing a notable drop from its 52-week high of Rs.201.80. The stock has underperformed its sector, falling by 0.98% on the day and lagging the Hotels & Resorts sector by 0.42%. Over the last five consecutive trading sessions, the share price has declined by 7.11%, signalling sustained selling pressure.

Technical indicators show the stock trading below all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages. This broad-based weakness suggests a lack of short- and long-term momentum.

In contrast, the broader market has shown resilience. The Sensex, after a negative start, recovered to close marginally higher at 83,605.32, just 3.05% shy of its 52-week high of 86,159.02. Mega-cap stocks led the market gains, while Apeejay Surrendra Park Hotels Ltd’s performance remained subdued.

Financial Metrics and Profitability Trends

The company’s recent financial results have contributed to the subdued market sentiment. The quarter ending September 2025 reported a profit after tax (PAT) of Rs.16.29 crores, reflecting a decline of 34.4% compared to the average of the previous four quarters. Operating cash flow for the year was recorded at Rs.151.81 crores, the lowest level observed, indicating tighter liquidity conditions.

Interest expenses have increased significantly, with a 29.45% rise over nine months to Rs.17.23 crores, adding to the financial burden. Despite these pressures, the company maintains a relatively low Debt to EBITDA ratio of 0.75 times, suggesting a manageable debt servicing capacity.

Return on Capital Employed (ROCE) stands at 9.8%, which, combined with an enterprise value to capital employed ratio of 1.9, points to a valuation that some may consider expensive relative to the company’s current earnings profile.

Long-Term Growth and Valuation Considerations

Despite recent setbacks, Apeejay Surrendra Park Hotels Ltd has demonstrated healthy long-term growth in net sales, expanding at an annual rate of 35.50%. Operating profit growth has been even more pronounced, increasing by 204.64% over the same period. However, this growth has not translated into share price appreciation, with the stock delivering a negative return of 33.00% over the past year, compared to an 8.03% gain in the Sensex.

The company’s Price/Earnings to Growth (PEG) ratio is currently at 1, indicating that the market may be pricing in growth expectations in line with earnings expansion. Nevertheless, the stock trades at a discount relative to its peers’ historical valuations, reflecting cautious investor sentiment.

Institutional Investor Activity

Institutional investors have reduced their holdings by 0.9% in the previous quarter, now collectively owning 14.62% of the company’s shares. This decline in institutional participation may reflect a reassessment of the company’s fundamentals by investors with greater analytical resources.

Over the medium to long term, the stock has underperformed not only the Sensex but also the broader BSE500 index across one-year, three-year, and three-month timeframes, underscoring persistent challenges in market performance.

Mojo Score and Market Sentiment

The company’s Mojo Score currently stands at 23.0, with a Mojo Grade of Strong Sell as of 21 Jul 2025, an upgrade from the previous Sell rating. This grading reflects a comprehensive assessment of the company’s financial health, valuation, and market performance. The Market Capitalisation Grade is 3, indicating a relatively modest market cap within its sector.

While the stock’s valuation is discounted compared to peers, the combination of declining profits, increased interest costs, and reduced institutional interest has weighed on sentiment.

Summary of Key Financial Indicators

• New 52-week low price: Rs.125.55

• 52-week high price: Rs.201.80

• One-year stock return: -33.00%

• Sensex one-year return: +8.03%

• PAT (Q): Rs.16.29 crores, down 34.4%

• Operating cash flow (Y): Rs.151.81 crores (lowest)

• Interest expense (9M): Rs.17.23 crores, up 29.45%

• Debt to EBITDA ratio: 0.75 times

• ROCE: 9.8%

• Enterprise value to capital employed: 1.9

• Institutional holding: 14.62%, down 0.9% last quarter

The stock’s recent performance and financial metrics highlight a period of subdued market confidence and valuation pressures. While the company continues to demonstrate growth in sales and operating profit, these factors have yet to translate into positive share price momentum.

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