Apeejay Surrend. (PARKHOTELS)
CyclicalFairStock Score: 11/100 — RISKY
Score breakdown: P/E: 0/3 · ROCE: 0/2 · Growth: 0/2 · Dividend: 0/1
Key Financials
| Current Price | ₹117.7 |
| Market Cap | ₹2,511.41 Cr |
| P/E Ratio | 38.21 |
| ROCE | 11.99% |
| ROE | 4.93% |
| Dividend Yield | 0.41% |
| Profit Growth | -54.9% |
| Debt/Equity | 0.28 |
| Sales Growth | 3.6% |
| Promoter Holding | 68.14% |
| 52-Week Range | ₹95.1 — ₹164.1 |
| Sector | Leisure Services |
| Book Value | ₹63.27 |
Strengths
- Low debt-to-equity of 0.23 provides balance sheet cushion
- Promoter holding of 68.14% aligns owners with minority shareholders
- Sales growth of 9.26% shows some business momentum
- ROCE of 11.99% is modestly positive and above the company's debt burden
- Book value of ₹57.34 gives some asset backing at ₹121.96 price
Concerns
- Profit growth is down 21.66% despite rising sales, indicating margin pressure
- Price-to-earnings of 31.57 is expensive for a business with declining earnings
- ROE of 6.93% is weak and suggests limited value creation on equity
- Piotroski F-Score of 4/9 points to poor financial health signals
AI Analysis
Let me begin with a simple truth: price is what you pay, value is what you get. At ₹121.96, this hotel business is being valued at about 31.6 times its trailing earnings. That is a rich price for a business whose profits fell 21.66% while sales grew 9.26%. In other words, the company is working harder but earning less — not a combination Graham would admire. The balance sheet is respectable. Debt-to-equity is only 0.23, and promoter holding at 68.14% does align skin in the game. But I need more than a clean balance sheet. Return on equity is just 6.93%, and ROCE is 11.99%. For a hotel company, which must constantly spend on upkeep and capital expenditure, these returns do not suggest a strong moat. A Piotroski score of 4 out of 9 reinforces my caution about financial health. I acknowledge the 9.26% sales growth, but growth without proportionate profit is not satisfying. The latest quarter shows ₹188 crore sales and ₹25 crore net profit; at this earnings run rate, the price-to-earnings ratio remains demanding. The dividend yield of 0.40% is not meaningful compensation for waiting. My approach is to wait for wonderful businesses at fair prices. Here I see a cyclical business at a premium with weakening profitability. Until profit margins recover and returns on capital move higher, I will stay on the sidelines. I need a margin of safety.
Data from BSE/NSE filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer