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Lemon Tree Hotels Ltd share Price Today

Company details

148.35
148.35
89.90
158.00
6M Return 28.33%
1Y Return 56.90%
Mkt Cap.(Cr) 11,752.97
Volume 10,582
Div Yield 0.00%
OI
-
OI Chg %
-
Volume 10,582

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About The Stock

    Promoted by Patanjali Keswani, Lemon Tree is the largest hotel chain in the mid-priced segment in India. It operates 8,489 rooms in 87 hotels across 54 destinations in India and abroad under brands like Aurika (premium), Lemon Tree premier, Lemon Tree (midscale), RedFox (economy) and Keys.

    • The favourable location of its properties in prominent business and tourist districts supports revenue growth prospects and reduces concentration risk
    • Post completion of expansion, LTHL will be operating ~10,462 rooms in 105 hotels across 64 destinations, in India and abroad by FY24E
Q3FY23 Results:

    Lemon tree’s Q3FY23 performance remained ahead of our estimates bolstered by strong room rates and focus on cost optimisation.

    • Revenues grew 62.6% YoY to ₹ 233.5 crore (up 18.7% QoQ). They were also up 17% from pre-Covid levels (i.e. Q3FY20)
    • On an absolute basis, operating costs were down 10% from pre-Covid levels This led to a sharp margin expansion of ~1348 bps to 54.2% (vs. our estimate of 49%) from pre-Covid levels
    • PAT improved to ₹ 48.3 crore in Q3FY23 vs. net loss of ₹ 5.2 crore last year and net profit of ₹ 11.1 crore during Q3FY20

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Lemon Tree Hotels announced Q3FY24 results:

Financial Performance Summary

  • Total Revenue: Rs 290.9 crore in Q3FY24, marking an increase of 24% compared to Q3FY23.
  • EBITDA: Rs 141.9 crore in Q3FY24, which is a 12% rise YoY.
  • EBITDA Margin: Reported at 48.8% for Q3FY24, a decrease of 547 basis points from Q3FY23.
  • Profit After Tax (PAT): Fell by 10% to Rs 43.8 crore in Q3FY24.
  • Cash Profit: Up by 7% to Rs 77.1 crore in Q3FY24.

Operational Highlights

  • Inventory (Owned/Leased rooms): Increased by 13% year-over-year with the total count of operational rooms reaching 9,687.
  • Average Room Rate (ARR): Gross ARR reached Rs 6,333 in Q3FY24, which is a 10% increase year-over-year.
  • Occupancy Rate: Slight decrease of 163 basis points year-over-year, registering at 65.9% in Q3FY24.

Development and Expansion

  • New Signed Contracts: 9 new management & franchise contracts were signed in Q3FY24, adding 621 rooms to the pipeline.
  • Hotels Operationalized: 6 hotels operationalized in Q3FY24, contributing an additional 967 rooms.
  • Future Inventory: By the end of FY24, the company expects to have over 105 hotels with more than 10,000 rooms.

Commenting on the performance for Q3FY24, Patanjali Keswani, Chairman & Managing Director of Lemon Tree Hotels, stated: “In Q3, Lemon Tree Hotels continued its growth momentum from the previous year. Q3FY24 has been the best-ever Q3 performance in terms of Gross ARR, Revenue & EBITDA. Q3FY24 recorded a Gross ARR of Rs 6,333 which increased by 10.4% YoY and increased by 20.2% QoQ. Occupancy for the quarter decreased by 163 basis points (bps) YoY and by 572 bps QoQ. This translated into a RevPAR of Rs 4,176 which increased by 7.7% YoY and by 10.6% QoQ. Total Revenue for the company in Q3 was Rs 290.9 crore, which was higher by 24.2% YoY and 26.4% QoQ. The Net EBITDA margin for the company in Q3FY24 stood at 48.8%, which decreased by 547 bps YoY and increased by 325 bps QoQ. The decrease in EBITDA margin YoY was mainly owing to a planned increase in renovation expenses above that spent in Q3FY23 and the deflationary impact of Aurika, Mumbai Skycity which opened on 5th October 2023 and is not yet stable. The renovation expense for the portfolio increased by Rs 5.5 crore YoY and Rs 4.8 crore QoQ, which translated into a reduction in EBITDA Margin % by approximately 2 percentage points. The Keys portfolio EBITDA Margin % decreased by approximately 9 percentage points QoQ due to an increase in renovation expenses of Rs 1.8 crore over the previous quarter.

Fees from management & franchised contracts for 3rd party owned hotels stood at Rs 14.9 crore in Q3FY24, up 52% from Rs 9.8 crore in Q3FY23. Total management fees for Lemon Tree (including fees from Fleur Hotels) were up 25% YoY at Rs 32.3 crore compared to Rs 25.8 crore in Q3FY23. Hotel level revenue from the owned portfolio increased by 18% YoY and the Network Revenue for Lemon Tree (i.e., total system revenue of owned including Aurika, MIAL and managed/franchised hotels) also increased by 18% YoY. Total network revenue stood at Rs 1,128 crore for 9MFY24 as compared to Rs 954 crore in 9MFY23.

During the quarter, we signed 9 new management & franchise contracts which added 621 new rooms to our pipeline and operationalized 6 hotels which added 967 rooms to our portfolio. We are pleased to announce that as of 31st Dec 2023, our operational inventory comprised 100 hotels with 9,687 rooms and our pipeline comprised 55 hotels with 3,746 rooms. As of now, we expect our operational inventory to be 105 hotels with over 10,000 rooms by the end of FY24. The launch of Aurika, Mumbai Skycity represents a major milestone in our growth journey. The hotel has already started to contribute positively to our portfolio, attracting both business and leisure travelers with its luxury facilities, prime location, and exceptional service. With no major capital expenditure plans in the near future, we will focus on strengthening our balance sheet and starting next year we will be reducing our debt which will peak by the end of FY24.”

 

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Lemon Tree Hotels Ltd shares SWOT Analysis

Strengths (13)

  • Strong Momentum: Price above short, medium and long term moving averages
  • Rising Net Cash Flow and Cash from Operating activity
  • Strong Annual EPS Growth

Weakness (1)

  • Companies with High Debt

Opportunity (1)

  • Results Screener: Stocks with upcoming results which are seeing positive shifts in share price

Threats (3)

  • Promoter decreasing their shareholding
  • Companies with growing costs YoY for long term projects
  • High PE (PE > 40)

Resistance and support

R1 150.4
R2 153.3
R3 155.3
Pivot

148.38

S1 145.4
S2 143.4
S3 140.5
EMA SMA
145.8
142.1
136.6
126.0
147.7
140.2
137.9
125.3
Delivery and volume
CLIENT NAME DEAL TYPE ACTION DATE AVG. PRICE QUANTITY EXCHANGE
GRAVITON RESEARCH CAPITAL LLP Bulk Purchase 2024-01-02 129.14 9429557 NSE
GRAVITON RESEARCH CAPITAL LLP Bulk Sell 2024-01-02 129.22 9429557 NSE
ISHARES CORE MSCI EMERGING MARKETS ETF Block Purchase 2022-10-03 86.8 1995550 NSE
Name Category Shares
SPANK MANAGEMENT SERVICES PRIVATE LIMITED PROMOTER 21.69%
SPARROW BUILDWELL PRIVATE LTD. PROMOTER 0.86%

OUR RESEARCH VIEW

Investment recommendation
Call Date
14 Feb 2023
Entry Price 78.00
Target Price 95.00
Duration
12-18 Month

FINANCIALS

Sales
Operating Profit
Profit after Tax
Equity
Reserves and Surplus
Debt
Sales
Operating Profit
Profit after Tax
PE
Debt/Equity
P BV

Lemon Tree Hotels Ltd Stocks COMPARISON

Financials( in Cr) Lemon Tree Hotels Ltd Indian Hotels Co Ltd EIH Ltd Chalet Hotels Ltd Juniper Hotels Ltd
Price 148.35 565.65 482.00 769.00 434.00
% Change 0.64 -0.33 -0.06 -1.38 -0.01
Mcap Cr 11,752.97 80,516.43 30,142.54 16,771.89 9,656.59
Revenue TTM Cr 874.99 5,809.91 2,018.81 1,128.47 666.85
Net Profit TTM Cr 140.54 971.43 329.10 183.29 -1.50
PE TTM 93.35 64.10 54.44 61.18 0.00
1 Year Return 56.90 52.47 140.10 81.41 8.09
ROCE 11.51 13.63 15.77 9.13 7.36
ROE 14.39 12.81 11.89 10.90 -8.36
INSIDER & INSTITUTIONAL ACTIVITY

Equity Capital: 853.73 Cr FV: 10.00

Period MF Net Purchase / (sold) FII Net
LAST 1M 39,612.39 -26,051.38
LAST 3M 102,786.44 -35,737.56
LAST 6M 169,824.52 46,518.61
LAST 12M 263,183.06 125,165.94

Lemon Tree Hotels Ltd Information

Stock PE (TTM)
93.35
Promoter Holding
22.88%
Book Value
10.9187
ROCE
11.51%
ROE
14.39%
Description
  • Lemon Tree Hotels Ltd. is India’s largest chain in the mid-priced hotel sector. It opened its first hotel in May 2004 with 49 rooms. The company’s headquarters are in New Delhi. During FY 2021-2022, the hotel chain reported a total revenue of Rs 416.27 crore, up 57.10% from the previous financial year, 2020-2021. On 29 August 2022, its market capitalisation stood at Rs HYPERLINK "https://www.moneycontrol.com/india/stockpricequote/hotels/lemontreehotelsltd/LTH" 5,387 crore.  

    The company is listed on the Bombay Stock Exchange with the code 541233 and on the National Stock Exchange with the code LEMONTREE.  

    Lemon Tree Hotels Ltd. operates under seven brands—Lemon Tree Premier, Aurika Hotels and Resorts, Lemon Tree Hotels, Keys Prima, Keys Lite, Keys Select, and Red Fox by Lemon Tree Hotels. The contemporary accommodation offers personal yet highly efficient service, along with premium amenities, such as a swimming pool, meeting rooms, fitness centre, business centre, and on-site restaurants.  

    On 30 June 2022, the company’s shareholding pattern revealed a public stake of 36.63%, a domestic institutional investor stake of 11.43%, a foreign institutional investor stake of 27.9%, and a promoter stake of 23.93%. During the June 2022 quarter, promoters unpledged 8.48% of shares, bringing the total pledge of promoters’ holdings to 14.72%. The promoters’ holdings decreased from 23.95% to 23.93%, while mutual fund holdings decreased from 12.02% to 11.03%.  

    Mr Patanjali Govind Keswani is the chairman and managing director of the company. Other members of the leadership team include Mr Arvind Singhania, Dr Arindam Kumar Bhattacharya, Mr Niten Malhan, Mr Ashish Kumar Guha, MrParmartha Saikia, Mr Pradeep Mathur, Mr Willem Albertus Hazeleger, Mr Aditya Madhav Keswani, and MsFreyan Jamshed Desai. The auditors of the company are Deloitte Haskins & Sells LLP. On 30 June 2022, the company had a total of 79.22 crore shares outstanding.  

    On 29 August 2022, Lemon Tree Hotels Ltd.’s share price closed at Rs 68.05 on BSE and it closed at Rs 68 on NSE. The 52-week high share price for Lemon Tree Hotels Ltd. was Rs 79.10, and the company’s 52-week low share price was Rs 37.30.  

    The company’s peers include Indian Hotels Company Ltd., Westlife Development Ltd., EIH Ltd., and Sapphire Foods India Ltd.  

    As of August 2022, SBI Conservative Hybrid Fund had a 0.42% stake in Lemon Tree Hotels Ltd. 

    Disclaimer: ICICI Securities Ltd. (I-Sec). Registered office of I-Sec is at ICICI Securities Ltd. - ICICI Venture House, Appasaheb Marathe Marg, Prabhadevi, Mumbai - 400 025, India, Tel No : 022 - 6807 7100. I-Sec is a Member of National Stock Exchange of India Ltd (Member Code :07730), BSE Ltd (Member Code :103) and Member of Multi Commodity Exchange of India Ltd. (Member Code: 56250) and having SEBI registration no. INZ000183631. Name of the Compliance officer (broking): Mr. Anoop Goyal, Contact number: 022-40701000, E-mail address: complianceofficer@icicisecurities.com. Investment in securities market are subject to market risks, read all the related documents carefully before investing. The contents herein above shall not be considered as an invitation or persuasion to trade or invest.  I-Sec and affiliates accept no liabilities for any loss or damage of any kind arising out of any actions taken in reliance thereon. The contents herein above are solely for informational purpose and may not be used or considered as an offer document or solicitation of offer to buy or sell or subscribe for securities or other financial instruments or any other product. Investors should consult their financial advisers whether the product is suitable for them before taking any decision. The contents herein mentioned are solely for informational and educational purpose 

Registered Address

Asset No 6, Aerocity Hospitality District, New Delhi, New Delhi, 110037

Tel : 91-11-46050101
Email : sectdeptt:lemontreehotels.com
Website : http://www.lemontreehotels.com
Registrar

KFin Techologies Ltd

AGM Date (Month) : Jun
Face Value Equity Shares : 10
Market Lot Equity Shares : 1
BSE Code : 541233
NSE Code : LEMONTREE
Book Closure Date (Month) :
BSE Group : A
ISIN : INE970X01018

FAQ’s on Lemon Tree Hotels Ltd Shares

You can buy Lemon Tree Hotels Ltd shares through a brokerage firm. ICICIdirect is a registered broker through which you can place orders to buy Lemon Tree Hotels Ltd Share.

Company share prices and volatile and keep changing according to the market conditions. As of May 24, 2024 09:07 AM the closing price of Lemon Tree Hotels Ltd was Rs.148.35.

Market capitalization or market cap is determined by multiplying the current market price of a company�s shares with the total number of shares outstanding. As of May 24, 2024 09:07 AM, the market cap of Lemon Tree Hotels Ltd stood at Rs. 11,752.97.

The latest PE ratio of Lemon Tree Hotels Ltd as of May 24, 2024 09:07 AM is 93.35

The latest PB ratio of Lemon Tree Hotels Ltd as of May 24, 2024 09:07 AM is 0.07

The 52-week high of Lemon Tree Hotels Ltd share price is Rs. 158.00 while the 52-week low is Rs. 89.90

According to analyst recommendations, Lemon Tree Hotels Ltd Share has a "Buy" rating for the long term.

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