Anand Rathi's research report on Lemon Tree Hotels
We expect Lemon Tree Hotels’ Q2 FY23 to be on similar lines as in Q1, as it sees demand rising. International travel returning would further benefit it in coming months. Lemon Tree is set to open its largest hotel, Aurika (669 rooms), Mumbai (MIAL) by end-CY23 (construction on track) ~13% of its current inventory. Therefore we incorporate Aurika, MIAL, and introduce our FY25 estimates, anticipating the company to report revenue/EBITDA CAGRs of 47%/71% over FY22-FY25.
Outlook
Hence, factoring in the above we raise our TP to Rs110 (from Rs85 earlier), valuing the stock at 18x FY25e EV/EBITDA from 20x FY24 EBITDA.
More Info
At 15:00 hrs Lemon Tree Hotels Ltd. was quoting at Rs 87.60, up Rs 0.85, or 0.98 percent.
It has touched an intraday high of Rs 90.00 and an intraday low of Rs 86.25.
It was trading with volumes of 911,034 shares, compared to its thirty day average of 919,502 shares, a decrease of -0.92 percent.
In the previous trading session, the share closed up 1.46 percent or Rs 1.25 at Rs 86.75.
The share touched its 52-week high Rs 88.40 and 52-week low Rs 42.10 on 22 September, 2022 and 29 November, 2021, respectively.
Currently, it is trading 0.9 percent below its 52-week high and 108.08 percent above its 52-week low.
Market capitalisation stands at Rs 6,940.08 crore.
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