Active Stocks
Mon Apr 22 2024 15:57:16
  1. Tata Steel share price
  2. 161.85 -0.15%
  1. HDFC Bank share price
  2. 1,512.30 -1.24%
  1. State Bank Of India share price
  2. 765.85 2.00%
  1. ICICI Bank share price
  2. 1,087.00 1.93%
  1. Wipro share price
  2. 461.95 2.01%
Business News/ Markets / Stock Markets/  Anand Rathi initiates coverage on Apeejay Surrendra Park Hotels stock with a 'buy' call, sees 28% upside; here's why
BackBack

Anand Rathi initiates coverage on Apeejay Surrendra Park Hotels stock with a 'buy' call, sees 28% upside; here's why

The newly listed Apeejay Surrendra Park Hotels stock began Friday's trading on a strong note and reached a new high in the morning session. However, since prices are currently trading near the day's low point with a 2% fall, analysts have noticed some profit booking.

Brokerage house, Anand Rathi Share and Stock Brokers Ltd, has initiated coverage on Apeejay Surrendra Park Hotels (Park Hotels) with a 'buy' rating. (https://www.theparkhotels.com/)Premium
Brokerage house, Anand Rathi Share and Stock Brokers Ltd, has initiated coverage on Apeejay Surrendra Park Hotels (Park Hotels) with a 'buy' rating. (https://www.theparkhotels.com/)

Brokerage house, Anand Rathi Share and Stock Brokers Ltd, has initiated coverage on Apeejay Surrendra Park Hotels (Park Hotels) with a 'buy' rating and a price target of 285, anticipating over 28% upside from the current levels.

On Friday's session, the recently listed Apeejay Surrendra Park Hotels stock started on a positive note and made a new fresh high in the morning session; however, analysts have now seen some profit booking as prices are trading at the low point of the day with a cut of 2%.

Also Read: Jio Financial Services share price jumps 14% to a record high; market cap crosses 2 lakh crore

Brokerage firm Anand Rathi believes Apeejay Surrendra Park Hotels to have industry-leading occupancy with attractive valuations. 

"Exciting news! Mint is now on WhatsApp Channels 🚀 Subscribe today by clicking the link and stay updated with the latest financial insights!" Click here!

The brokerage's report stated that Park Hotels operates thirty hotels (seven owned, three leased, and twenty under management contract) with 2,298 rooms (~1,280/~1018 owned & leased/MC) in luxury categories, including boutique upscale (The Park, The Park Collection) and upper midscale (Zone by the Park, Zone Connect by the Park), all of which are situated in prime business districts. Its occupancy rate is the highest in the sector.

Also Read: Multibagger stock: Servotech Power Systems gains 5% on bagging 1500 EV chargers

Its pricing strategy, which involves offering rooms at a premium compared to competitors, together with a carefully thought-out expansion plan and fair valuation, bode well for the company (selling at 50%/10%/33% discounts to Indian Hotels/Lemon Tree/Chalet Hotels), the brokerage highlighted in its report. 

Also Read: Energy stock Servotech Power Systems hits upper circuit after winning HPCL order worth 102 crore

“Multi brands, prime locations, industry-leading occupancy, competitive average room rate (ARR) augur well. The company’s hotel portfolio is diversified across categories luxury and upscale through The Park brand, and upper mid-market through Zone by the Park. Hence, we initiate coverage on the stock with a Buy and a 12-month target price of 285 (valuing it at 18x FY26 EV/EBITDA, giving 35%/20%/10% discounts from Indian Hotels/Chalet Hotels/Lemon Tree)," the brokerage said.

High contingent liabilities and a slowing economy are two of the risks that the brokerage recognised.

Also Read: South Indian Bank: This banking stock trading under 40 delivered 375% return in 20 months

Disclaimer: The views and recommendations above are those of individual analysts, experts and broking companies, not of Mint. We advise investors to check with certified experts before making any investment decision.

 

 

 

Unlock a world of Benefits! From insightful newsletters to real-time stock tracking, breaking news and a personalized newsfeed – it's all here, just a click away! Login Now!

Catch all the Business News, Market News, Breaking News Events and Latest News Updates on Live Mint. Download The Mint News App to get Daily Market Updates.
More Less
Published: 23 Feb 2024, 02:54 PM IST
Next Story footLogo
Recommended For You
GENIE RECOMMENDS

Get the best recommendations on Stocks, Mutual Funds and more based on your Risk profile!

Let’s get started
Switch to the Mint app for fast and personalized news - Get App