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INVESTMENT INSIGHTS

Check Before You Invest : Lemon Tree Hotels Ltd

BSE: 541233 NSE: LEMONTREE ISIN: INE970X01018
  |   Sector:  Travel & Hospitality   |   Industry:  Hotel, Resort & Restaurants

Snapshot

Q.1 Which industry/sub-sector does Lemon Tree Hotels Ltd belong to?
Lemon Tree Hotels Ltd belongs to the Travel & Hospitality sector, operating specifically within the Hotel, Resort & Restaurants segment.
Q.2 Is Lemon Tree Hotels Ltd a good quality company?
Lemon Tree Hotels Ltd is a average quality company, based on a somewhat consistent 10 year financial track record.
Q.3 Is Lemon Tree Hotels Ltd undervalued or overvalued?
Lemon Tree Hotels Ltd appears Somewhat Undervalued, as its key valuation ratios are below with their past averages.
Q.4 Is Lemon Tree Hotels Ltd a good buy now?
Lemon Tree Hotels Ltd is a good buy now, based on strong price trend analysis suggesting prices may rise. However, you need to check its quality and valuation before making a decision

Performance Analysis

Q.1 Revenue growth of Lemon Tree Hotels Ltd?
Lemon Tree Hotels Ltd revenue growth is 20.1% for FY-2025 , which is above its 5 year CAGR of 14% , indicating faster growth.
Q.2 Gross Profit margin of Lemon Tree Hotels Ltd?
Lemon Tree Hotels Ltd Gross profit margin which is the profit after deduction of direct costs, is 33.9% for FY-2025 , which is above its 5 year median of 30.6% , indicating increasing margins.
Q.3 Operating Profit Margin of Lemon Tree Hotels Ltd?
Lemon Tree Hotels Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 49.52% for FY-2025 , which is above its 5 year median of 48.89% indicating increasing margins.
Q.4 Net Profit Margin of Lemon Tree Hotels Ltd?
Lemon Tree Hotels Ltd Net Profit Margin is 18.91% for FY-2025 , is above with its 5 year median of 16.06%, indicating increasing margins.
Current Level Historic Median
Gross Profit Margin 33.9 30.6
Operating Profit Margin 49.52 48.89
Net Profit Margin 18.91 16.06
Q.5 Return on Asset of Lemon Tree Hotels Ltd?
Lemon Tree Hotels Ltd Return on Asset is 6.03%, which is above its 5 year historical median of 3.86%, indicating improved asset utilization efficiency.
Q.6 Return on Equity (ROE) of Lemon Tree Hotels Ltd?
Lemon Tree Hotels Ltd Return on equity is 22.83% for FY-2025 , which is above its historical median of 16.68%, indicating the business is making better use of its shareholders capital.
Q.7 Return on capital employed (ROCE) of Lemon Tree Hotels Ltd?
Lemon Tree Hotels Ltd Return on capital employed is 17.75% for FY-2025 , which is above its estimated weighted average cost of capital(WACC) 13.5%, indicating value creation.
Q.8 Cash conversion cycle of Lemon Tree Hotels Ltd?
Lemon Tree Hotels Ltd Cash conversion cycle is -11 days, above its historical median of -32 days, indicating deteriorated working capital management. However, you need to compare this with its peers in the industry.
Current Level Historic Median
Asset Turnover 0.32 0.24
ROE 22.83 16.68
ROCE 17.75 14.06
Cash Conversion Cycle -11 days -32 days
Q.9 Debt to Equity ratio of Lemon Tree Hotels Ltd?
Lemon Tree Hotels Ltd Debt-to-Equity ratio is 1.46 , which is above with the industry average of 0.09 , indicating higher debt levels in the industry.
Q.10 Debt to cash flow from operations of Lemon Tree Hotels Ltd?
Lemon Tree Hotels Ltd Debt to cash flow from operations is 3.14 , which is at a unhealthy level.

Ownership & governance

Q.1 Promoter shareholding and pledge status of Lemon Tree Hotels Ltd?
Promoters hold 22.32% of the Lemon Tree Hotels Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

Q.1 Revenue growth of Lemon Tree Hotels Ltd vs industry peers?
Lemon Tree Hotels Ltd revenue CAGR is 13.95% , compared to the industry median CAGR of 3.58% , indicating faster growth and gaining its market share.
Profit Metrics
Current Level Industry Median
Revenue 1,286.1 44.4
Gross Profit 436 5.5
Operating Profit 634 5.6
Net Profit 243 1.5
Operating Efficiency
Current Level Industry Median
Asset Turnover 0.32 0.28
ROE 22.83 3.09
ROCE 17.75 6.11
Cash Conversion Cycle (days) -10.99 -

Valuation & price assessment

Q.1 Stock return of Lemon Tree Hotels Ltd over the last decade?
Over the last 5 year(s), the stock has delivered a CAGR of 30.54% based on the current price.
Q.2 What return has the stock given over the last decade?
9Y 5Y 3Y 1Y
Share Price - 30.5% 12.5% -17.1%
Q.3 Valuation ratios of Lemon Tree Hotels Ltd vs historical?
The current P/E is lower that its historical median.
Q.4 How do the current valuation ratios measure up against the historic numbers and the current industry numbers?
Valuation Ratios Current Historic Median Industry Median
Price to Earnings 44.14 58.78 37.08
Price to Book 7.37 8.03 1.71
Price to Sales 6.91 9.53 5.24
EV to EBITDA 16.14 22.14 17.33

Check more companies

1. EIH
2. Chalet Hotels
3. Leela Palaces Hotels
4. Ventive Hospitality
5. Lemon Tree Hotels
6. Mahindra Holi.&Resor
7. Ind Tourism Dev Corp
8. Juniper Hotels
9. Samhi Hotels
10. Apeejay Surrendra
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