Prabhudas Lilladher has issued a buy rating on Apeejay Surrendra Park Hotels with a target price of ₹206 in its research report dated February 07, 2026. According to reports from Moneycontrol, the brokerage maintains its positive outlook despite the company's recent operational challenges.
The company reported weak operating performance with EBITDA margin of 35.3% (against PLe of 37.4%). As reported by Moneycontrol, the miss at bottom-line level was magnified due to higher-than-expected interest cost of ₹101 million (PLe ₹71 million) and lower-than-expected other income of ₹15 million (PLe ₹39 million).
Following the acquisition of Zillion Hotels, Juhu during Q2FY26, the company has completed buy-outs of Malabar House, Fort Kochi and Purity, Lake Vembanad in December 2025, indicating an inventory addition pipeline of near term is on track. According to Moneycontrol, however, completion timeline of Park, Pune and EM Bypass, Kolkata has been delayed to early 2030.
There have been delays in scaling Flurys with only 4 outlets added in 9MFY26 against expectations. As reported by Moneycontrol, given these delays in project timelines, the brokerage has cut its EV/EBITDA multiple for hotels business to 12.5x (earlier 15x) and EV/Sales multiple of Flurys business to 1.5x (earlier 3x).
Despite challenges, Prabhudas Lilladher expects sales CAGR of 18% over the next 3 years with projected EBITDA margin of 32.8%/33.7%/35.9% in FY26E/FY27E/FY28E respectively. According to Moneycontrol, the brokerage maintains its BUY rating with SoTP based TP of ₹206 (earlier ₹240) and has rolled forward its valuation to FY28E.
