Lemon Tree Hotels Share Price in Focus: Lemon Tree Hotels Limited (LTHL, one of the largest hotel chains in India, that owns, leases, operates, and franchises hotels across the upscale, upper-midscale, midscale and economy segments) reported a strong Q4 performance, with revenue rising 29.5 per cent year-on-year to Rs 327 crore from Rs 253 crore, while EBITDA increased 23.9 per cent to Rs 260 crore from Rs 210 crore. The company’s profit after tax (PAT) surged 42.3 per cent to Rs 84 crore from Rs 59 crore, although EBITDA margin declined by 363 basis points to 79.5 per cent from 83.1 per cent in the corresponding quarter last year. Here’s why brokerage is bullish on the BSE 500 company.
1. Stock currently trades at 18x/15x FY27E/28E equity-adjusted EV/EBITDA.
2. 2,500+ rooms to be added over the next few quarters through a mix of greenfield development and select overseas assets
3. Acquisition discipline anchored at 8x TTM EV/EBITDA as a hard ceiling
4. Capital allocation threshold set at 15% post-fee EBITDA/CE.
5. Mgmt targets 28,000 rooms in the current year, scaling past 30,000 with Fleur’s planned additions.
Lemon Tree Hotels Share: Buy, Sell or Hold? Brokerages remain divided; check latest target prices
Earlier, the brokerages were divided on Lemon Tree Hotels. They shared mixed views on the hotel and resort stock, a constituent of the BSE 500 index.
The brokerage firm Nuvama Research maintains a buy call on Lemon Tree Hotels, with a target price of Rs 186. Here’s why:
(Disclaimer: The above article is meant for informational purposes only, and should not be considered as any investment advice. ET NOW DIGITAL suggests its readers/audience to consult their financial advisors before making any money related decisions.)
