Lemon Tree Hotels Ltd logo

Lemon Tree Hotels Ltd

LEMONTREE NSE

Lemon Tree Hotels Ltd is largest mid-priced and the third largest overall hotel chain in India. It operate in the upscale segment and in the mid-priced sector, consisting of the upper-midscale, midscale and economy segments. It delivers differentiated yet superior service offerings, with a value-for-money proposition.[1]

AI Verdict: BUY Confidence: 6%

Lemon Tree Hotels shows exceptional profit growth of 207% CAGR over 5 years with improving ROE at 18% last year, supported by 91% analyst buy ratings. However, the stock trades at a rich valuation of 33.9x PE and 7.66x book value with zero dividend payout, warranting a cautious accumulation approach.

Key Fundamentals

MicrocapHotels & ResortsLeisure Services
Market Cap
₹9,601 Cr
Volatility
Moderate
P/E Ratio
41.85
EBITDA
₹657 Cr
Return on Equity
9.94%
Debt to Equity
2.1
Book Value
₹17.57
EPS
₹1.83
52W High
₹180.68
52W Low
₹99.61

Technical Indicators

Key Insights

Strengths

1
  • Company has delivered good profit growth of 31.6% CAGR over last 5 years

Weaknesses

3
  • Stock is trading at 6.79 times its book value
  • Though the company is reporting repeated profits, it is not paying out dividend
  • Promoter holding is low: 22.3%

Growth Rate

Revenue Growth
11.20% ↗
Net Income Growth
28.45% ↘
Cash Flow Change
16.47% ↗
ROE
15.66% ↘
ROCE
17.58% ↘
EBITDA Margin (Avg.)
-9.22% ↘

AI Analysis — Bull vs Bear

Anthropic anthropic claude-opus-4.6 26d ago
BUY
Risk high

Lemon Tree Hotels shows exceptional profit growth of 207% CAGR over 5 years with improving ROE at 18% last year, supported by 91% analyst buy ratings. However, the stock trades at a rich valuation of 33.9x PE and 7.66x book value with zero dividend payout, warranting a cautious accumulation approach.

Bull Case 8
  • Exceptional compounded profit growth of 207% CAGR over the last 5 years indicates strong operational turnaround
  • Overwhelming analyst consensus with 90.91% buy ratings (20 out of 22 analysts) signals institutional confidence
  • ROE has improved sharply from 5% (5-year average) to 18% last year, showing accelerating capital efficiency
  • TTM sales growth of 14% demonstrates continued revenue momentum in the hospitality upcycle
  • TTM profit growth of 34% outpaces revenue growth of 14%, indicating expanding margins and operating leverage
  • 3-year compounded sales CAGR of 47% reflects strong post-COVID recovery and market share gains
  • 3-year ROE average of 16% is well above the 10-year average of 3%, confirming structural improvement in profitability
  • Stock price CAGR of 23% over 5 years shows long-term wealth creation track record despite recent correction
Bear Case 8
  • Stock trades at 7.66x price-to-book value, significantly expensive for a hospitality company with cyclical earnings
  • PE ratio of 33.9x is elevated for a mid-cap hotel company, leaving limited margin of safety
  • Zero dividend yield despite repeated profitability suggests poor shareholder return policy
  • Promoter holding at just 22.3% is notably low, raising concerns about alignment and potential dilution risk
  • Stock has declined 16% over the past 1 year, underperforming broader markets significantly
  • 10-year compounded profit CAGR of only 18% versus 207% over 5 years shows historical earnings volatility and cyclicality
  • 5-year sales CAGR of only 14% versus 3-year CAGR of 47% indicates growth normalization ahead as COVID base effect fades
  • Market cap of Rs 9,532 crore with current valuations prices in significant future growth, increasing downside risk if execution falters

This is AI-generated analysis, not financial advice. Do your own due diligence.

AI News Digest

Anthropic anthropic claude-opus-4.6 20d ago
Headwinds 2
  • Tax demand on subsidiary Fleur Jun 3

    Customs tribunal confirmed Rs 33.54 lakh service tax demand plus penalty on Fleur Hotels for wrongly availed CENVAT credit during July 2012–March 2013.

  • MSA terminated over non-payment May 7

    Subsidiary BHPL terminated Master Service Agreement with CS Hospitality & Management Services due to non-payment of management fee and deposit, signaling counterparty risk.

Positives 5
  • FY26 net profit up 19% May 28

    Consolidated net profit rose to ₹28,831.82 lakh in FY26 from ₹24,314.54 lakh YoY. Revenue from operations reached ₹1,44,450.33 lakh.

  • Aggressive room expansion pipeline May 15

    Signed or opened five new properties in May alone—Bhubaneswar (50 + 65 rooms), Assam (40 rooms), Amritsar (50 rooms), and Karnal (50 rooms)—adding ~255 rooms across four states.

  • New signing in Kumbakonam May 25

    Signed license agreement for a 66-room Lemon Tree Hotel in Kumbakonam, Tamil Nadu, managed by its wholly-owned subsidiary.

  • Haryana portfolio hits 13 hotels May 18

    Franchise deal for 50-room Keys Prima in Karnal expands Haryana presence to 13 hotels, deepening penetration in a key north India market.

  • Assam market debut May 15

    Opened first-ever property in Assam (Keys Select, Chirang, 40 rooms on NH-31C), entering a new northeast India market.

Neutral 2
  • Fleur Hotels stake transfer done May 22

    Coastal Cedar Investments B.V. acquired 41.09% equity in Fleur Hotels Limited, completing a previously disclosed share transfer transaction.

  • FY26 results board meeting set May 22

    Board meeting scheduled for May 28, 2026 to approve audited FY26 results; trading window closed until 48 hours post-announcement.

TL;DR: Lemon Tree Hotels delivered strong FY26 earnings growth (~19% profit increase) backed by aggressive asset-light expansion, adding over 300 rooms through signings and openings in May–June alone. The tax demand on Fleur Hotels is immaterial at Rs 33.54 lakh and the MSA termination is a minor operational cleanup. The overall trend is clearly positive with rapid geographic diversification into Tier-2/3 cities and new states, suggesting continued revenue and profit momentum into FY27.

Quarterly Results

  Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024Sep 2024Dec 2024Mar 2025Jun 2025Sep 2025Dec 2025Mar 2026
Sales
253
224
227
290
327
268
284
355
379
316
306
406
416
Expenses
113
118
125
149
156
153
154
171
175
176
176
201
202
Operating Profit
140
106
102
141
171
115
131
184
203
140
131
205
215
OPM %
55%
47%
45%
49%
52%
43%
46%
52%
54%
44%
43%
50%
52%
Other Income
2
1
3
1
4
0
1
1
1
2
2
-30
1
Interest
45
48
47
53
53
52
51
50
47
45
42
41
39
Depreciation
24
23
23
33
33
35
35
35
35
34
34
35
35
PBT
73
36
35
56
89
29
45
100
122
63
56
99
142
Tax %
20%
24%
25%
21%
6%
31%
23%
20%
12%
23%
25%
17%
18%
Net Profit
59
28
26
44
84
20
35
80
108
48
42
82
116
EPS in Rs
0.56
0.3
0.29
0.45
0.85
0.25
0.37
0.79
1.07
0.48
0.44
0.79
1.15
Figures in ₹ Crores

Profit & Loss

  Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024Mar 2025Mar 2026
Sales
290
368
412
484
550
669
252
402
875
1,071
1,286
1,444
Expenses
239
268
295
348
381
429
194
283
427
548
652
754
Operating Profit
51
100
117
136
169
241
57
119
448
523
634
690
OPM %
18%
27%
28%
28%
31%
36%
23%
30%
51%
49%
49%
48%
Other Income
13
5
12
13
15
11
22
22
10
13
13
-25
Interest
72
72
78
78
85
162
190
181
182
208
211
167
Depreciation
52
52
51
53
54
92
108
104
97
112
139
139
PBT
-60
-19
0
18
45
-2
-219
-145
178
216
296
359
Tax %
5%
35%
1452%
21%
-25%
499%
-15%
-5%
21%
16%
18%
20%
Net Profit
-63
-26
-5
15
56
-13
-187
-137
141
182
243
288
EPS in Rs
-0.81
-0.35
-0.08
0.18
0.67
-0.12
-1.6
-1.1
1.45
1.87
2.48
2.87
Div. Payout %
0%
0%
0%
0%
0%
0%
0%
0%
0%
0%
0%
0%
Figures in ₹ Crores

Balance Sheet

  Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024Mar 2025Mar 2026
Equity Capital
776
778
781
786
789
790
790
791
792
792
792
792
Reserves
34
30
27
28
86
199
127
40
62
175
372
600
Borrowings
571
625
799
1,011
1,196
2,017
2,159
2,128
2,177
2,336
2,148
2,004
Other Liabilities
515
572
604
632
701
756
738
674
698
725
763
889
Total Liabilities
1,896
2,004
2,212
2,458
2,772
3,763
3,815
3,633
3,729
4,028
4,075
4,285
Fixed Assets
1,236
1,231
1,418
1,460
1,604
3,307
3,194
3,051
2,957
3,641
3,556
3,563
CWIP
167
259
351
559
664
190
242
297
482
25
59
108
Investments
31
6
6
15
35
14
6
10
6
13
45
73
Other Assets
462
508
436
425
469
252
374
276
284
348
415
540
Total Assets
1,896
2,004
2,212
2,458
2,772
3,763
3,815
3,633
3,729
4,028
4,075
4,285
Figures in ₹ Crores

Cash Flow

  Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024Mar 2025Mar 2026
Operating
-51
68
122
115
187
151
41
135
385
465
542
542
Investing
-150
-103
-229
-260
-289
-598
-66
-45
-283
-397
-127
-169
Financing
159
18
111
149
113
457
111
-163
-132
-59
-392
-370
Net Cash Flow
-42
-16
4
3
10
9
87
-73
-31
10
22
3
Free Cash Flow
-213
-64
-108
-128
-93
-482
-23
69
223
134
448
406
CFO/OP
-74
80
108
86
119
63
55
115
91
96
93
85
Figures in ₹ Crores

Ratios

  Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024Mar 2025Mar 2026
Debtor Days
23
24
28
40
56
27
45
26
23
24
22
29
Inventory Days
62
62
57
49
48
57
154
112
—
—
—
59
Days Payable
429
599
692
739
768
584
1,648
807
—
—
—
289
Cash Conversion Cycle
-344
-513
-608
-650
-664
-500
-1,450
-668
23
24
22
-200
Working Capital Days
-61
-169
-173
-108
-103
-109
-302
-166
-110
-73
-48
-6
ROCE %
—
3%
4%
5%
5%
5%
-1%
1%
10%
11%
13%
14%

Shareholding Pattern

As of Mar 2026
Promoters 22.32%
FIIs 21.60%
Public 20.48%
Others 19.94%
DIIs 15.67%
Total 100.01%
  Mar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024Sep 2024Dec 2024Mar 2025Jun 2025Sep 2025Dec 2025Mar 2026
Promoters
25.88%
25.88%
25.88%
25.88%
23.95%
23.93%
23.61%
23.61%
23.61%
23.60%
23.28%
23.21%
22.88%
22.80%
22.77%
22.77%
22.34%
22.28%
22.28%
22.28%
22.32%
FIIs
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
24.82%
0.00%
27.09%
27.61%
21.75%
20.01%
20.90%
21.33%
21.45%
21.50%
21.60%
DIIs
15.34%
14.20%
14.09%
13.34%
12.02%
11.03%
10.39%
10.14%
10.64%
10.38%
13.41%
14.76%
15.35%
15.20%
18.91%
20.80%
19.69%
19.98%
19.71%
19.46%
15.67%
Government
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
Public
11.61%
13.30%
14.68%
14.51%
12.54%
13.99%
14.90%
16.31%
17.86%
17.24%
15.47%
15.81%
15.63%
15.27%
17.47%
16.59%
17.11%
17.14%
17.05%
17.23%
20.48%
Others
47.18%
46.62%
45.36%
46.28%
51.49%
51.05%
51.10%
49.94%
47.89%
48.78%
23.01%
46.22%
19.05%
19.12%
19.10%
19.84%
19.96%
19.27%
19.52%
19.53%
19.94%
No. of Shareholders
96,628
1,36,055
1,47,976
1,83,512
1,72,459
1,84,935
1,95,818
2,24,156
2,44,336
2,58,070
2,81,003
2,98,123
3,25,800
3,30,910
3,57,968
3,55,134
3,67,528
3,64,251
3,68,811
3,68,933
3,99,213

Documents

1
Concall - Jun 2018 Jun 2018
2
Concall - Sep 2019 Sep 2019
3
Concall - Sep 2019 Sep 2019
4
Concall - Sep 2019 Sep 2019
5
Concall - Sep 2019 Sep 2019

Frequently Asked Questions about Lemon Tree Hotels Ltd

What does Lemon Tree Hotels Ltd do?
Lemon Tree Hotels Ltd is largest mid-priced and the third largest overall hotel chain in India. It operate in the upscale segment and in the mid-priced sector, consisting of the upper-midscale, midscale and economy segments. It delivers differentiated yet superior service offerings, with a value-...
Where is Lemon Tree Hotels Ltd (LEMONTREE) listed?
Lemon Tree Hotels Ltd is listed on the Indian stock exchanges. It is listed on NSE: LEMONTREE and BSE: 541233. You can view its live share price, financials, and ratios on Tapetide.
Which sector does Lemon Tree Hotels Ltd belong to?
Lemon Tree Hotels Ltd operates in the Consumer Discretionary sector within the Leisure Services industry. Sector classification helps investors compare companies affected by similar economic conditions and regulatory changes.
What is the market capitalisation of Lemon Tree Hotels Ltd?
Lemon Tree Hotels Ltd has a market capitalisation of approximately ₹9601.23 Cr. Based on this, it is classified as a Mid Cap stock.
What is the PE ratio of Lemon Tree Hotels Ltd?
The Price-to-Earnings (PE) ratio of Lemon Tree Hotels Ltd is 41.85. The PE ratio compares a company's share price to its earnings per share and is commonly used to assess whether a stock is overvalued or undervalued relative to its peers.
What is the 52-week high and low of Lemon Tree Hotels Ltd?
Over the past 52 weeks, Lemon Tree Hotels Ltd has traded between a low of ₹99.61 and a high of ₹180.68. This range helps investors understand the stock's price volatility and recent trading levels.
What is the Return on Equity (ROE) of Lemon Tree Hotels Ltd?
Lemon Tree Hotels Ltd has a Return on Equity (ROE) of 9.94%. ROE measures how effectively a company uses shareholders' equity to generate profits. A higher ROE generally indicates better capital efficiency.
How can I research Lemon Tree Hotels Ltd on Tapetide?
On Tapetide, you can view Lemon Tree Hotels Ltd's live share price, quarterly results, profit & loss statements, balance sheet, cash flow, key ratios, shareholding pattern, technical indicators, analyst ratings, and forecasts — all on a single page without needing to sign up.

Company Information

Lemon Tree Hotels Ltd is largest mid-priced and the third largest overall hotel chain in India. It operate in the upscale segment and in the mid-priced sector, consisting of the upper-midscale, midscale and economy segments. It delivers differentiated yet superior service offerings, with a value-for-money proposition.[1]

Website lemontreehotels.com
CEO Mr. Patanjali Govind Keswani
Employees 5,621
Listed 2018-04-09
Face Value ₹ 10
Issued Size 79,22,46,464

Explore More

More in Consumer Discretionary → FII DII Data Stock Screener Nifty 50 Heatmap F&O Ban List