Apeejay Surrendra Park Hotels Limited Just Beat Revenue By 11%: Here's What Analysts Think Will Happen Next

Last week, you might have seen that Apeejay Surrendra Park Hotels Limited (NSE:PARKHOTELS) released its second-quarter result to the market. The early response was not positive, with shares down 4.3% to ₹142 in the past week. Apeejay Surrendra Park Hotels beat revenue forecasts by a solid 11% to hit ₹1.7b. Statutory earnings per share came in at ₹3.92, in line with expectations. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.

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Following the latest results, Apeejay Surrendra Park Hotels' four analysts are now forecasting revenues of ₹7.19b in 2026. This would be a notable 9.0% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to surge 22% to ₹5.05. Before this earnings report, the analysts had been forecasting revenues of ₹7.38b and earnings per share (EPS) of ₹5.20 in 2026. It's pretty clear that pessimism has reared its head after the latest results, leading to a weaker revenue outlook and a small dip in earnings per share estimates.

View our latest analysis for Apeejay Surrendra Park Hotels

Despite the cuts to forecast earnings, there was no real change to the ₹221 price target, showing that the analysts don't think the changes have a meaningful impact on its intrinsic value. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company's valuation. Currently, the most bullish analyst values Apeejay Surrendra Park Hotels at ₹238 per share, while the most bearish prices it at ₹200. With such a narrow range of valuations, the analysts apparently share similar views on what they think the business is worth.

One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. The analysts are definitely expecting Apeejay Surrendra Park Hotels' growth to accelerate, with the forecast 19% annualised growth to the end of 2026 ranking favourably alongside historical growth of 12% per annum over the past year. Other similar companies in the industry (with analyst coverage) are also forecast to grow their revenue at 22% per year. Apeejay Surrendra Park Hotels is expected to grow at about the same rate as its industry, so it's not clear that we can draw any conclusions from its growth relative to competitors.

The Bottom Line

The most important thing to take away is that the analysts downgraded their earnings per share estimates, showing that there has been a clear decline in sentiment following these results. Sadly, they also downgraded their revenue forecasts, but the business is still expected to grow at roughly the same rate as the industry itself. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.

Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. We have estimates - from multiple Apeejay Surrendra Park Hotels analysts - going out to 2028, and you can see them free on our platform here.

You still need to take note of risks, for example - Apeejay Surrendra Park Hotels has 1 warning sign we think you should be aware of.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.