Lemon Tree Hotels Ltd. (LEMONTREE) AI Stock Analysis

• Market Cap: ₹130.84B
• Dividend Yield: N/A
• Average Volume (3M): 285.71K
• Price to Earnings (P/E): 60.8
• Beta (1Y): 1.25
• Revenue Growth: 20.03%
• EPS Growth: 48.55%
• Country: IN
• Employees: 5,272
• Sector: Services
• Sector Strength: N/A
• Industry: Travel Lodging
• EPS (TTM): 0.50
• Shares Outstanding: 792,246,460
• 10 Day Avg. Volume: 511,688
• 30 Day Avg. Volume: 285,710
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: ₹172.20
• Price Target Upside: 2.59% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 5

• Rating: 58 Neutral
• Price Target: ₹151.00 ▼(-10.04% Downside)

Lemon Tree Hotels Ltd. has a moderate overall stock score driven by strong financial performance, particularly in revenue growth and cash flow. However, high leverage and overvaluation based on the P/E ratio are significant concerns. Technical indicators suggest a lack of strong momentum, with potential for a short-term rebound.

Lemon Tree Hotels Ltd. Business Overview & Revenue Model

Company Description

Lemon Tree Hotels Ltd. (LEMONTREE) is a prominent hotel chain in India, known for its mid-scale and upscale accommodations. The company operates a range of hotels that cater to both leisure and business travelers, offering a blend of modern amenities and warm hospitality. Lemon Tree Hotels focuses on providing value-for-money stays, with properties strategically located in key business and tourist destinations across India.

How the Company Makes Money

Lemon Tree Hotels Ltd. generates revenue primarily through its hotel operations, which include room bookings, food and beverage services, and other hospitality-related amenities. The company earns income from direct bookings and partnerships with online travel agencies and corporate clients. Additionally, Lemon Tree Hotels benefits from hosting events, conferences, and banquets, which contribute to its revenue streams. The company also engages in management contracts where it operates hotels owned by third parties, earning fees for its management expertise. Strategic locations and a strong brand presence further bolster its financial performance.

Lemon Tree Hotels Ltd. Financial Statement Overview

Summary

Lemon Tree Hotels Ltd. shows strong revenue growth and improved profitability, with a robust Gross Profit Margin. However, high leverage and volatile EBIT and EBITDA margins pose risks. Cash flow metrics are solid, indicating good liquidity and operational efficiency.

Income Statement

Lemon Tree Hotels Ltd. has shown a strong revenue growth trajectory, with Total Revenue increasing significantly over the past years. Notably, the Gross Profit Margin stands robust, reflecting efficient cost management. The company has turned around its profitability, as seen in the positive Net Profit Margin in recent years, which is a substantial improvement from earlier losses. However, there is room for improvement in EBIT and EBITDA margins, which have been volatile.

Balance Sheet

The balance sheet shows a moderate financial position with a relatively high Debt-to-Equity Ratio, indicating a significant leverage that could pose risks in economic downturns. However, the improving Return on Equity suggests that the company is efficiently using its equity base to generate profits. The Equity Ratio indicates a stable capital structure, albeit on the lower side, suggesting potential vulnerability to debt financing.

Cash Flow

Cash flow analysis reveals strong Free Cash Flow growth, indicating improved cash generation capabilities. The Operating Cash Flow is consistently positive, reflecting good liquidity and operational efficiency. The Free Cash Flow to Net Income Ratio indicates that the company is generating healthy cash relative to its earnings, supporting potential reinvestments and debt servicing.

Breakdown	TTM	Dec 2025	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	12.35B	12.86B	10.72B	8.39B	3.85B	2.44B
Gross Profit	8.39B	7.64B	7.43B	6.33B	2.51B	1.50B
EBITDA	6.17B	6.47B	5.30B	4.52B	1.40B	778.17M
Net Income	1.79B	1.97B	1.48B	1.15B	-874.34M	-1.27B
Balance Sheet
Total Assets	0.00	40.82B	40.33B	37.32B	36.35B	38.19B
Cash, Cash Equivalents and Short-Term Investments	468.61M	1.19B	620.67M	284.76M	602.33M	1.42B
Total Debt	0.00	21.48B	23.36B	21.77B	21.28B	21.59B
Total Liabilities	-16.02B	22.91B	24.87B	23.19B	22.36B	22.84B
Stockholders Equity	16.02B	11.64B	9.67B	8.54B	8.31B	9.18B
Cash Flow
Free Cash Flow	0.00	2.88B	1.34B	2.23B	677.50M	-294.30M
Operating Cash Flow	0.00	3.84B	4.65B	3.85B	1.35B	410.14M
Investing Cash Flow	0.00	-1.29B	-4.04B	-2.83B	-454.43M	-655.92M
Financing Cash Flow	0.00	-2.33B	-585.27M	-1.32B	-1.63B	1.11B

Lemon Tree Hotels Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 167.85
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:LEMONTREE, the sentiment is Positive. The current price of 167.85 is above the 20-day moving average (MA) of 152.89, above the 50-day MA of 149.00, and above the 200-day MA of 140.30, indicating a bullish trend. The MACD of 5.18 indicates Negative momentum. The RSI at 64.34 is Neutral, neither overbought nor oversold. The STOCH value of 69.72 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for IN:LEMONTREE.

Lemon Tree Hotels Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TAJGVK	70 Neutral	₹26.47B	18.73		0.35%	13.21%	51.59%
ROHLTD	69 Neutral	₹14.45B	27.90		0.50%	9.24%	3.73%
ORIENTHOT	68 Neutral	₹24.52B	51.96		0.37%	21.66%	15.35%
PARKHOTELS	65 Neutral	₹32.28B	32.68		―	―	―
MHRIL	60 Neutral	₹70.92B	54.63		―	3.14%	6.79%
LEMONTREE	58 Neutral	₹130.84B	60.78		―	20.03%	48.55%
Sector *	57 Neutral	$1.87B	9.43	8.02%	2.45%	5.38%	-37.86%

Lemon Tree Hotels Ltd. Corporate Events

Lemon Tree Hotels Announces Strategic Leadership Restructuring

Lemon Tree Hotels Limited has announced significant changes in its strategic leadership, effective October 1, 2025, pending shareholder approval. The leadership restructuring includes the continuation of Mr. Patanjali Govind Keswani as Executive Chairman, the appointment of Mr. Neelendra Singh as Managing Director, Mr. Kapil Sharma as Executive Director and CFO, and Mr. Saurabh Shatdal as MD and CEO of Fleur Hotels Limited, a material subsidiary. These changes are part of the company’s succession planning strategy, aimed at ensuring leadership continuity and strengthening its governance framework.

Lemon Tree Hotels Faces Tax Demand from GST Authority

Lemon Tree Hotels Limited has received an order from the Office of the Principal Commissioner of Central Goods & Service Tax, Delhi South Commissionerate, demanding a total tax, interest, and penalty amounting to Rs 64,41,819/- for the period from July 2012 to June 2017. This order pertains to a short payment of service tax on the abated value of service charges collected from customers. The company states that there is no material impact on its financial operations, except for the specified amount, and it is in the process of filing an appeal against the order.

Lemon Tree Hotels Expands with New Property in Nashik

Lemon Tree Hotels Limited has announced the signing of a new property, Lemon Tree Suites, in Nashik, Maharashtra. Managed by its subsidiary, Carnation Hotels Private Limited, the property will offer 135 suites and various amenities, reinforcing the company’s presence in Maharashtra. This expansion aligns with Lemon Tree’s strategy for sustained growth in key markets, enhancing its footprint in a city known for its spiritual and economic significance.

Lemon Tree Hotels Expands with New Surat Property

Lemon Tree Hotels Limited has announced the signing of a new property, Lemon Tree Premier, in Surat, Gujarat, which will be managed by its subsidiary, Carnation Hotels Private Limited. The new hotel will feature 108 rooms and various amenities, enhancing the company’s presence in the region known for its diamond and silk industries. This expansion aligns with Lemon Tree’s strategy to capitalize on Surat’s cultural and economic strengths, as well as its strategic location, to attract both business and leisure travelers.

Lemon Tree Hotels Faces Service Tax Recovery Orders

Lemon Tree Hotels Limited has announced that both the company and its wholly-owned subsidiary, Oriole Dr. Fresh Hotels Private Limited, have received orders for the recovery of service tax, interest, and penalties under the CGST Act, 2017. The orders, issued by the Office of the Principal Commissioner of Central Goods & Service Tax, Delhi South Commissionerate, pertain to alleged short payments of service tax on abated service charges collected from customers during the periods of April 2017 to June 2017 and July 2012 to June 2017. The company is actively pursuing legal remedies and plans to appeal against these orders. Despite the financial implications of the tax demands, the company states that there is no material impact on its financial operations beyond the specified amounts.