Apeejay Surrendra Park Hotels Ltd. (PARKHOTELS) AI Stock Analysis

• Market Cap: ₹23.06B
• Dividend Yield: 0.36%
• Average Volume (3M): 35.83K
• Price to Earnings (P/E): 29.7
• Beta (1Y): 1.57
• Revenue Growth: 14.08%
• EPS Growth: 29.33%
• Country: IN
• Employees: 492
• Sector: Services
• Sector Strength: N/A
• Industry: Travel Lodging
• EPS (TTM): 1.20
• Shares Outstanding: 213,374,250
• 10 Day Avg. Volume: 19,198
• 30 Day Avg. Volume: 35,832
• PEG Ratio: 13.20
• Price to Book (P/B): 2.48
• Price to Sales (P/S): 5.04
• P/FCF Ratio: 767.50
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: ₹175.00
• Price Target Upside: 29.53% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): 5.48
• Revenue Forecast (FY): ₹7.35B

• Rating: 61 Neutral
• Price Target: ₹114.00 ▼(-15.62% Downside)
• Action: Reiterated Date: 10/14/25
• Date: Action: Reiterated 10/14/25

The overall stock score of 61 reflects a strong financial performance with robust revenue and profit margins, but is tempered by bearish technical indicators and a high valuation. The company's financial stability is a positive, but declining free cash flow and expensive valuation present risks. Technical analysis suggests caution due to bearish trends.

Positive Factors

Strong balance sheet / low leverage

Very low debt and a high equity ratio provide lasting financial flexibility for a hotel operator. This capital structure reduces default and refinancing risk across business cycles, supports investments in property upkeep or expansion, and allows the company to withstand demand troughs without urgent external financing.

Sustained revenue and margin improvement

Consistent top-line growth alongside rising gross and net margins indicates durable improvements in pricing power and cost control. For a branded hotel company, this suggests stronger mix, higher ADR or banquet yields, and structural operational efficiencies that can sustain profits through typical industry cycles.

Solid operating cash generation

Robust conversion of earnings into operating cash demonstrates the underlying business generates real cash from room, F&B and events operations. That persistent cash flow supports reinvestment in assets and debt servicing capacity over the medium term even if free cash flow fluctuates.

Negative Factors

Declining free cash flow

A falling free cash flow trend constrains the company’s ability to fund renovations, expand selectively, pay higher dividends, or absorb shocks without raising capital. In asset-heavy hospitality, prolonged FCF weakness can force funding trade-offs or slower strategic investments, weakening long-term competitiveness.

Rising total liabilities

Even from a low-leverage starting point, growing liabilities can incrementally reduce financial headroom and increase interest or covenant exposure. If liability growth outpaces cash generation, the firm’s ability to self-fund capex or absorb demand shocks diminishes, pressuring strategic optionality over time.

Cyclicality and high fixed-cost model

Hotel revenues are structurally sensitive to travel cycles and corporate travel patterns. The fixed-cost nature of hotels means occupancy drops hit margins disproportionately. Over a multi-month horizon, demand volatility and seasonality can materially swing revenue and profitability unless occupancy and ADR remain consistently strong.

Apeejay Surrendra Park Hotels Ltd. Business Overview & Revenue Model

Company Description

Apeejay Surrendra Park Hotels Limited owns and operates hotels in India. The company operates hotels under the THE PARK, THE PARK Collection, Zone by The Park, Zone Connect by The Park, and Stop by Zone brand names. It also operates confectionery outlets under the Flurys brand name; and yachts for tourism purposes. The company was formerly known as Budget Hotels Limited and changed its name to Apeejay Surrendra Park Hotels Limited in March 2004. Apeejay Surrendra Park Hotels Limited was incorporated in 1987 and is based in New Delhi, India.

How the Company Makes Money

PARKHOTELS primarily makes money by operating hotels and monetizing its room inventory and on-property services. Its key revenue streams typically include: (1) Rooms revenue: income from selling hotel room nights to business and leisure travelers, including direct bookings (brand website/phone/walk-ins) and indirect channels such as online travel agencies (OTAs), travel agents, and corporate travel programs; realized pricing is influenced by occupancy, average daily rate (ADR), seasonality, city-wide demand, and mix of corporate vs. leisure customers. (2) Food & beverage (F&B) revenue: sales from restaurants, bars, in-room dining, and catering; this can include both in-house guests and external patrons, and is often supported by the company’s branded dining and nightlife concepts where applicable. (3) Banquets, meetings and events: revenue from hosting conferences, weddings, social events and corporate meetings, including venue rental and associated F&B packages and services. (4) Other hotel-related income: ancillary earnings such as spa/wellness services, laundry, airport transfers/transport, and other guest services, where available at a given property. The company’s earnings are driven by the number of operating properties/keys, location mix, brand positioning, and its ability to optimize distribution (balancing direct bookings vs. commission-bearing OTAs), manage costs, and maintain strong corporate/event relationships that support repeat occupancy and banquet demand. Specific significant partnerships, contract structures (e.g., owned vs. leased vs. managed), and the split of revenue by segment are null.

Apeejay Surrendra Park Hotels Ltd. Financial Statement Overview

Summary

Apeejay Surrendra Park Hotels Ltd. exhibits strong financial growth and stability. Revenue and profit margins are on an upward trend, reflecting sound financial management and operational efficiency. The balance sheet is robust with low leverage and high equity ratio, although increasing liabilities should be managed carefully. Cash flow concerns are present due to declining Free Cash Flow, but overall cash generation remains strong. The company is well-positioned for future growth, with attention needed on cash flow management.

Income Statement

The income statement shows a strong growth trajectory with Total Revenue increasing consistently from 2021 to 2025. Gross Profit Margin improved to 55.3% in 2025, reflecting efficient cost management. Net Profit Margin rose to 13.2% in 2025 due to increased revenue and profitability. The company has successfully turned around from a net loss in 2022 to a healthy net income. EBIT and EBITDA margins have strengthened, showcasing enhanced operational efficiency.

Balance Sheet

The balance sheet demonstrates solid financial stability with a Debt-to-Equity Ratio of 0.13 in 2025, indicating low leverage and strong equity. The Return on Equity (ROE) significantly improved to 6.51% in 2025, showcasing better utilization of equity for generating profits. Equity Ratio increased to 76.8%, indicating a strong capital structure. However, the increase in total liabilities warrants careful monitoring.

Cash Flow

Cash flow analysis reveals a decline in Free Cash Flow from 2024 to 2025, impacting liquidity. The Operating Cash Flow to Net Income Ratio remained healthy at 1.86 in 2025, indicating good cash generation from operations. However, the Free Cash Flow to Net Income Ratio decreased, signaling reduced cash availability for investments and debt servicing.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	6.74B	6.31B	5.79B	5.10B	2.55B	1.76B
Gross Profit	4.17B	3.49B	3.69B	2.11B	661.51M	250.96M
EBITDA	2.25B	2.26B	2.04B	1.77B	581.53M	70.16M
Net Income	883.30M	835.90M	687.70M	480.70M	-282.02M	-758.84M
Balance Sheet
Total Assets	19.37B	16.71B	14.76B	13.62B	12.75B	12.80B
Cash, Cash Equivalents and Short-Term Investments	891.20M	775.60M	625.40M	172.20M	92.50M	103.80M
Total Debt	3.06B	1.68B	999.00M	6.17B	6.54B	6.16B
Total Liabilities	6.32B	3.88B	2.78B	8.06B	7.67B	7.44B
Stockholders Equity	13.06B	12.84B	11.98B	5.56B	5.09B	5.36B
Cash Flow
Free Cash Flow	-1.17B	41.50M	492.30M	1.34B	307.13M	-147.70M
Operating Cash Flow	713.60M	1.55B	1.68B	1.76B	581.11M	266.06M
Investing Cash Flow	-1.85B	-1.99B	-1.01B	-421.30M	-221.08M	-253.06M
Financing Cash Flow	1.05B	99.30M	-396.40M	-1.26B	-372.13M	-52.60M

Apeejay Surrendra Park Hotels Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 135.10
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:PARKHOTELS, the sentiment is Negative. The current price of 135.1 is above the 20-day moving average (MA) of 119.66, above the 50-day MA of 123.89, and below the 200-day MA of 143.59, indicating a bearish trend. The MACD of -4.19 indicates Positive momentum. The RSI at 40.14 is Neutral, neither overbought nor oversold. The STOCH value of 28.02 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:PARKHOTELS.

Apeejay Surrendra Park Hotels Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
EIHAHOTELS	75 Outperform	₹18.38B	13.46	―	0.98%	1.40%	18.39%
ADVANIHOTR	72 Outperform	₹4.77B	12.58	―	3.31%	0.14%	7.90%
TAJGVK	72 Outperform	₹19.28B	18.32	―	0.48%	9.49%	40.16%
ORIENTHOT	63 Neutral	₹16.22B	21.96	―	0.48%	19.69%	17.02%
PARKHOTELS	61 Neutral	₹23.06B	29.66	―	0.36%	14.08%	29.33%
ROHLTD	61 Neutral	₹8.78B	31.71	―	0.61%	10.77%	-4.40%
Sector *	55 Neutral	$13.29B	17.42	10.03%	0.93%	7.13%	-12.93%

Apeejay Surrendra Park Hotels Ltd. Corporate Events

Apeejay Surrendra Park Hotels, Ambuja Neotia launch The Park Unizen on Kolkata’s EM Bypass

Apeejay Surrendra Park Hotels and Ambuja Neotia have launched The Park Unizen, a hospitality-integrated serviced residence development on Kolkata’s EM Bypass, adjacent to an upcoming THE Park Hotel. The project, comprising 69 serviced residences, is intended to reinforce the EM Bypass as a mixed-use lifestyle corridor by combining residential, hospitality and leisure offerings.

Designed by global architecture firm Gensler with interiors by Bobby Mukherji Architects, The Park Unizen draws on the Sundarban mangroves for its façade and incorporates an elevated wellness terrace, pool and landscaped leisure zones. The adjoining 218-room THE Park Hotel will add luxury rooms, banquet and event spaces, signature dining, nightlife venues, wellness facilities and an air taxi landing facility, enhancing the area’s appeal to high-end guests and long-stay residents.

By uniting two influential Eastern India groups in hospitality and real estate, the development reflects a strategic response to rising demand for design-led, hospitality-linked living formats. The integrated project is likely to strengthen the partners’ positioning in premium urban mixed-use assets and could attract investors, homebuyers and corporate clients seeking experiential, amenity-rich environments along a key urban growth axis in Kolkata.

Apeejay Surrendra Park Hotels Releases Q3 & 9M FY26 Investor Presentation

Apeejay Surrendra Park Hotels Limited has released an investor presentation covering its financial results for the third quarter and nine months ended December 31, 2025, and will discuss these results with investors and analysts in a scheduled conference call on February 6, 2026. The presentation, which is also available on the company’s website, is part of its ongoing regulatory disclosures and investor communication efforts, underscoring its commitment to transparency and regular engagement with market participants.

Apeejay Surrendra Park Hotels Appoints Joint Internal Auditor for FY 2025–26

Apeejay Surrendra Park Hotels Limited has appointed M/s A. Mukhopadhyay & Co., Chartered Accountants, as a joint internal auditor for the financial year 2025–26, following the recommendation of its Audit & Risk Management Committee and approval by the Board on February 4, 2026. The appointment of the established audit firm, which specializes in corporate taxation, statutory and internal audits, and a range of advisory and compliance services, signals the company’s focus on strengthening internal controls and governance as it meets evolving regulatory requirements and expectations of listed-entity stakeholders.