Prabhudas Lilladher Recommends Buy on Apeejay Surrendra Park Hotels; Target Rs 206

• Prabhudas Lilladher maintains a 'BUY' rating on Apeejay Surrendra Park Hotels with a revised target price of Rs 206.
• The company reported weak operating performance with an EBITDA margin of 35.3%, impacted by higher interest costs and lower other income.
• Near-term inventory addition pipeline is on track with acquisitions like Zillion Hotels, Juhu, and buy-outs of Malabar House and Purity.
• Project completion timelines for Park, Pune, and EM Bypass, Kolkata, have been delayed to early 2030, and Flurys scaling also saw delays.
• Despite delays, Prabhudas Lilladher expects a sales CAGR of 18% over the next three years, with improving EBITDA margins.