Apeejay Surrendra Park Hotels Ltd Hits All-Time Low Amidst Continued Downtrend

Recent Price Movements and Market Context

On 20 Jan 2026, Apeejay Surrendra Park Hotels Ltd recorded a day decline of 1.04%, underperforming the Sensex which fell by 0.41%. This drop extended a three-day losing streak during which the stock has declined by 4.23%. Over the past month, the stock has fallen 8.43%, significantly underperforming the Sensex’s 2.39% decline. The underperformance is even more pronounced over longer periods, with a 37.42% loss in the last year compared to a 7.56% gain in the Sensex.

The stock is trading below all key moving averages – 5-day, 20-day, 50-day, 100-day, and 200-day – signalling sustained downward momentum. Additionally, Apeejay Surrendra Park Hotels Ltd has underperformed the BSE500 index over the last three months, one year, and three years, highlighting persistent challenges in both short and long-term performance.

Financial Performance and Valuation Metrics

The company’s financial results have shown mixed signals amid the price decline. The latest quarterly profit after tax (PAT) stood at Rs.16.29 crores, reflecting a 34.4% decrease compared to the average of the previous four quarters. Operating cash flow for the year is at its lowest level of Rs.151.81 crores, indicating constrained liquidity generation.

Interest expenses for the nine-month period have increased by 29.45% to Rs.17.23 crores, adding pressure on net profitability. Despite these headwinds, the company maintains a relatively low Debt to EBITDA ratio of 0.75 times, suggesting a manageable debt burden in relation to earnings before interest, tax, depreciation and amortisation.

Return on Capital Employed (ROCE) is reported at 9.8%, while the enterprise value to capital employed ratio stands at 1.9, indicating a valuation that may be considered expensive relative to the company’s capital base. However, the stock currently trades at a discount compared to its peers’ average historical valuations.

Shareholder and Institutional Investor Trends

Institutional investors have reduced their holdings by 0.9% over the previous quarter, now collectively holding 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.

The company’s Mojo Score has deteriorated to 23.0, with a Mojo Grade downgraded from Sell to Strong Sell as of 21 Jul 2025. The Market Cap Grade remains at 3, underscoring the stock’s small-cap status within the Hotels & Resorts sector.

Long-Term Growth and Profitability Trends

Despite the recent price weakness, Apeejay Surrendra Park Hotels Ltd has demonstrated healthy long-term growth in net sales, which have increased at an annual rate of 35.50%. Operating profit has shown an even more robust growth rate of 204.64%, indicating operational expansion over the years.

However, the stock’s total returns over three, five, and ten years have remained flat at 0.00%, contrasting sharply with the Sensex’s gains of 36.75%, 66.50%, and 244.54% respectively. This divergence highlights the stock’s inability to translate operational growth into shareholder value appreciation over the long term.

Sector and Peer Comparison

Within the Hotels & Resorts sector, Apeejay Surrendra Park Hotels Ltd’s performance has been notably weaker than its peers. The stock’s one-year return of -37.42% contrasts with sector averages and broader market indices, which have generally shown resilience or growth. The company’s PEG ratio of 1 indicates that its price-to-earnings multiple is in line with its earnings growth, yet this has not translated into positive price momentum.

While the company’s ability to service debt remains sound, as reflected by its low Debt to EBITDA ratio, the rising interest expenses and declining quarterly profits have contributed to the stock’s subdued market performance.

Summary of Key Metrics

To summarise, Apeejay Surrendra Park Hotels Ltd’s stock has reached a historic low of Rs.123.45, reflecting a sustained period of underperformance. The company’s financial indicators reveal a complex picture of growth in sales and operating profit alongside declining net profitability and increased interest costs. Institutional investor participation has decreased, and the stock’s valuation metrics suggest a cautious market stance.

These factors collectively underpin the stock’s current Mojo Grade of Strong Sell, a downgrade from Sell earlier in 2025, signalling a challenging environment for the company within its sector.

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