According to Prabhudas Lilladher's research report dated June 1, 2026, the brokerage has issued a buy rating on Apeejay Surrendra Park Hotels with a target price of ₹168. The recommendation is based on a sum-of-the-parts (SoTP) valuation methodology, with the hotel business valued at 11.5x FY28E EBITDA and the Flurys brand valued at 1.5x FY28E sales. The latest target price represents an upward revision from the previous ₹156 recommendation, reflecting improved market conditions and operational performance.
As reported by Prabhudas Lilladher, PARKHOTE IN delivered strong financial results with consolidated net sales of ₹183.70 crore in March 2026, representing a 3.6% year-on-year growth. The company's standalone net sales reached ₹171.49 crore, marking a 2.63% Y-o-Y increase. These results demonstrate the company's ability to maintain revenue growth despite challenging market conditions, with the brokerage noting that the performance exceeded previous estimates.
According to Prabhudas Lilladher, PARKHOTE IN delivered a modest operating performance with an EBITDA margin of 28.1%, slightly below the previous estimate of 28.8%. The company's RevPAR remained flat at ₹6,858 amid challenging operating conditions. The brokerage has cut EBITDA estimates by 4.4% for FY27E and 4.6% for FY28E as part of fine-tuning RevPAR growth and margin assumptions, though the latest results suggest improved operational efficiency.
According to the research report, PARKHOTE IN is pursuing an aggressive expansion strategy through strategic acquisitions. The company has acquired Zillion Hotels, Juhu and completed buyouts of Malabar House, Fort Kochi and Purity, Lake Vembanad. Additionally, Flurys is planning to add approximately 30 new outlets in FY27E to expand its geographical footprint. The company is actively engaging with mall developers, airport owners and multiplex operators to secure strategic locations across multiple geographies.
As reported by Prabhudas Lilladher, the company is expected to achieve sales and EBITDA CAGR of 17% and 20% respectively over FY26-FY28E. The brokerage maintains its buy rating with confidence in the company's near-term expansion plans and inventory pipeline development, with no major delays anticipated in the planned expansion projects. The latest target price revision to ₹168 reflects the company's strong operational performance and positive growth trajectory in the hospitality sector.
