Lemon Tree Hotels Ltd. (LEMONTREE) AI Stock Analysis

• Market Cap: ₹118.60B
• Dividend Yield: N/A
• Average Volume (3M): 214.09K
• Price to Earnings (P/E): 53.9
• Beta (1Y): 1.17
• Revenue Growth: 16.03%
• EPS Growth: 44.95%
• Country: IN
• Employees: 5,272
• Sector: Services
• Sector Strength: N/A
• Industry: Travel Lodging
• EPS (TTM): 0.42
• Shares Outstanding: 792,246,460
• 10 Day Avg. Volume: 167,700
• 30 Day Avg. Volume: 214,095
• PEG Ratio: 1.73
• Price to Book (P/B): 9.34
• Price to Sales (P/S): 8.43
• P/FCF Ratio: 37.73
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 54 Neutral
• Price Target: ₹152.00 ▼(-0.78% Downside)

Lemon Tree Hotels Ltd. has a mixed outlook. Strong financial performance is offset by bearish technical indicators and a high P/E ratio, suggesting overvaluation. The lack of dividend yield further detracts from its appeal. High leverage remains a risk factor.

Positive Factors

Revenue Growth

Consistent revenue growth indicates effective market penetration and product demand, enhancing long-term business stability and expansion potential.

Cash Flow Generation

Strong cash flow generation supports operational efficiency, allowing for reinvestments and debt servicing, ensuring financial resilience.

Profitability Improvement

Improved profitability reflects effective cost management and strategic execution, which can enhance shareholder value and support future growth.

Negative Factors

High Leverage

High leverage can strain financial flexibility, increasing vulnerability to economic downturns and potentially impacting long-term sustainability.

Volatile Margins

Volatile margins can indicate inconsistent operational efficiency, which may affect profitability and strategic planning over the long term.

Equity Ratio Concerns

A lower equity ratio suggests potential vulnerability to debt financing, which could limit growth opportunities and increase financial risk.

Lemon Tree Hotels Ltd. Business Overview & Revenue Model

Company Description

Lemon Tree Hotels Limited owns and operates a chain of business and leisure hotels. As of May 12, 2022, it operated 84 hotels with approximately 8,250 rooms across 52 destinations in India and internationally under various brands, including Aurika Hotels & Resorts, Lemon Tree Premier, Lemon Tree Hotels, Red Fox Hotels, Keys Prima, Keys Select, and Keys Lite. The company also provides project design and management, as well as housing rental services. Lemon Tree Hotels Limited was incorporated in 1992 and is based in New Delhi, India.

How the Company Makes Money

Lemon Tree Hotels generates revenue primarily through its hotel operations, with key income streams coming from room bookings, food and beverage sales, and event hosting services. The company benefits from a diverse range of properties, which allows it to cater to different market segments and enhance occupancy rates. Additionally, Lemon Tree Hotels may leverage partnerships with online travel agencies (OTAs) and corporate clients to secure bulk bookings and long-term contracts, further stabilizing its revenue. The brand's focus on operational efficiency and customer loyalty programs also contributes to consistent revenue generation.

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. Strong cash flow metrics indicate operational efficiency, but careful debt management is crucial.

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 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	13.36B	12.88B	10.73B	8.76B	4.03B	2.52B
Gross Profit	9.44B	9.06B	7.44B	6.07B	2.34B	1.31B
EBITDA	6.46B	6.06B	5.07B	4.33B	1.04B	414.65M
Net Income	2.15B	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	1.19B	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	-17.90B	22.91B	24.87B	23.19B	22.36B	22.84B
Stockholders Equity	17.90B	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	-3.97B	-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: Negative
• Last Price: 153.20
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• 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 Negative. The current price of 153.2 is below the 20-day moving average (MA) of 157.94, below the 50-day MA of 158.96, and above the 200-day MA of 152.59, indicating a bearish trend. The MACD of -2.63 indicates Positive momentum. The RSI at 37.13 is Neutral, neither overbought nor oversold. The STOCH value of 34.22 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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	72 Outperform	₹25.72B	17.79	―	0.48%	9.49%	40.16%
PARKHOTELS	61 Neutral	₹27.15B	30.73	―	0.36%	14.08%	29.33%
ROHLTD	61 Neutral	₹10.41B	22.56	―	0.61%	10.77%	-4.40%
ORIENTHOT	59 Neutral	₹20.61B	41.69	―	0.48%	19.69%	17.02%
MHRIL	57 Neutral	₹61.58B	45.99	―	―	4.25%	17.51%
Sector *	55 Neutral	$13.29B	17.42	10.03%	0.93%	7.13%	-12.93%
LEMONTREE	54 Neutral	₹118.60B	53.87	―	―	16.03%	44.95%

Lemon Tree Hotels Ltd. Corporate Events

Lemon Tree Hotels Clears Multi-Stage Group Restructuring and Demerger into Fleur Hotels

Lemon Tree Hotels Ltd. has approved a composite scheme of arrangement to reorganize its group structure involving the amalgamation of several wholly owned subsidiaries into the listed parent and its material subsidiary Fleur Hotels Ltd., followed by the demerger of a defined hotel and hospitality asset platform into Fleur. Under the scheme, two wholly owned subsidiaries will be merged into Lemon Tree Hotels without any share consideration, four other wholly owned subsidiaries will be merged into Fleur Hotels in exchange for new equity shares of Fleur, and the identified hotel assets, development capabilities and related liabilities will then be demerged from Lemon Tree into Fleur in return for Fleur issuing shares to Lemon Tree shareholders at a specified swap ratio. Post-reorganisation, the hotels vested in Fleur will continue to be managed and operated by Lemon Tree under revised hotel operating agreements, with Lemon Tree also agreeing to refer future hotel development opportunities first to Fleur, a structure that is aimed at streamlining the asset-holding platform while preserving and potentially enhancing the core hotel management and operating income stream for the listed company. The scheme remains subject to customary regulatory and stakeholder approvals, including clearances from stock exchanges and SEBI, shareholder and creditor votes, National Company Law Tribunal sanction, and competition approval if required.

Lemon Tree Hotels Unveils Reorganisation and Warburg Pincus-Backed Growth Plan for Fleur

Lemon Tree Hotels has approved a composite scheme of arrangement to simplify its group structure by separating hotel ownership and operations into two dedicated platforms: Lemon Tree as an asset-light hotel management, franchising and digital business, and Fleur Hotels as a large-scale hotel ownership and development company that will hold the group’s hotel assets and lead future acquisitions and projects. As part of this reorganisation, Warburg Pincus affiliate Coastal Cedar Investments will acquire APG’s entire 41.09% stake in Fleur and commit up to ₹960 crore of primary capital to fund Fleur’s expansion, with the scheme also paving the way for a separate listing of Fleur’s shares on NSE and BSE and a governance realignment that will see founder Patanjali Keswani chair Fleur while moving towards a non-executive role at Lemon Tree, positioning the group to capitalise on India’s strengthening hospitality cycle and potentially unlock long-term value for shareholders.

Lemon Tree Hotels Clears Major Group Restructuring and Demerger Plan

Lemon Tree Hotels’ board has approved a composite scheme of arrangement to reorganize its group structure involving the parent company, its material subsidiary Fleur Hotels Limited and six wholly owned subsidiaries. The plan provides for the amalgamation of two wholly owned subsidiaries directly into Lemon Tree Hotels, the merger of four other wholly owned subsidiaries into Fleur Hotels with specific share-swap ratios, and the subsequent demerger of Lemon Tree’s identified hotel assets and hospitality platform into Fleur Hotels, which will issue shares to Lemon Tree shareholders in exchange. Post-restructuring, the hotels transferred to Fleur Hotels will continue to be managed and operated by Lemon Tree under revised hotel operating agreements, and the company will prioritize referring new hotel development opportunities to Fleur, signaling a shift toward a more focused asset platform and a clearer separation between asset ownership and hotel operations. The scheme is subject to multiple regulatory and stakeholder approvals, including from stock exchanges, SEBI, shareholders and creditors, the National Company Law Tribunal and, if required, the Competition Commission of India.

Lemon Tree Hotels Clears Composite Scheme, Warburg Pincus Affiliate to Buy 41% in Fleur Hotels

Lemon Tree Hotels’ board has approved a Composite Scheme of Arrangement as part of a broader corporate reorganization, following recommendations from its Reorganization, Audit and Independent Directors’ committees. As part of this restructuring, the board also cleared a share purchase agreement under which APG Strategic Real Estate Pool N.V. will sell its entire 41.09% stake in group entity Fleur Hotels Limited to Coastal Cedar Investments B.V., an affiliate of Warburg Pincus, and approved a new shareholders’ agreement among Fleur, Lemon Tree, promoter entities and the incoming investor. These moves signal a significant reshaping of the ownership and governance structure around Fleur, potentially strengthening Lemon Tree’s strategic partnership with Warburg Pincus–backed capital and paving the way for further portfolio or balance-sheet optimization within the hotel platform.

Lemon Tree Hotels Denies Talks on Warburg Pincus Stake Acquisition

Lemon Tree Hotels has refuted media reports suggesting that private equity firm Warburg Pincus may acquire a stake in the company, possibly triggering an open offer or involving a preferential allotment of shares. Responding to stock exchange queries after the news report drove a rise in its share price, the hotel operator stated that there are currently no negotiations, discussions, agreements or proposals underway for any such stake purchase, whether from existing shareholder APG Strategic RE Pool or otherwise, and that the statements in the media item are factually incorrect and misleading. Lemon Tree added that while it routinely evaluates strategic and financial options as part of normal business, no binding agreement has been signed nor any transaction approved by its board, and it has fully complied with disclosure norms under SEBI’s LODR Regulations. The company does not expect the speculative report to have any material impact on its operations, financial position or business prospects and said it will inform exchanges if any material development arises in future.

Lemon Tree Hotels Shifts Registered Office to Gurugram, Keeps Corporate Base in New Delhi

Lemon Tree Hotels has shifted its registered office from Aerocity Hospitality District in New Delhi to Lemon Tree Corporate Park in Sector 60, Gurugram, Haryana, effective December 31, 2025, following approval by the board of directors via circular resolution on January 1, 2026. The company’s corporate office will continue to operate from its existing Aerocity, New Delhi address, indicating that the move is primarily a statutory and administrative change rather than an operational relocation, with limited immediate impact on day-to-day business activities or stakeholder engagement.

Lemon Tree Subsidiary Signs Operating Pact for New Tirupati Hotel

Lemon Tree Hotels’ wholly owned subsidiary, Carnation Hotels Private Limited, has signed a Hotel Operating Agreement for a new property in Tirupati, Andhra Pradesh, which will be operated under the “Lemon Tree Suites” brand once a licence agreement is executed following receipt of statutory completion clearances. The Tirupati hotel, located in one of India’s most prominent pilgrimage destinations, will add 228 rooms and suites along with a restaurant, banquet and meeting space, and recreational facilities including a swimming pool and spa, reinforcing the group’s push into the high-potential spiritual and pilgrimage travel segment and further expanding its footprint in Andhra Pradesh, where it already has a portfolio of operational and upcoming hotels.

Lemon Tree Hotels Expands Presence with New Property in Nepal

Lemon Tree Hotels Limited has announced the signing of a new property, Lemon Tree Hotel, Bandipur, Nepal, managed by its subsidiary Carnation Hotels Private Limited. This expansion strengthens the company’s presence in Nepal, targeting both business and leisure travelers with a vibrant and value-driven experience. Located in the historic town of Bandipur, the hotel will feature 80 rooms, a restaurant, a bar, and recreational facilities, offering stunning views of the Himalayas and unique local experiences. This move reinforces Lemon Tree’s commitment to expanding its footprint in dynamic markets and delivering exceptional hospitality experiences.

Lemon Tree Hotels Expands with New Property in Punjab

Lemon Tree Hotels Limited has announced the signing of a new franchise agreement for a property named Keys Lite by Lemon Tree Hotels in Kartarpur, Punjab. This new hotel will feature 47 rooms, a restaurant, a banquet and conference hall, and a fitness center, enhancing the company’s presence in Punjab. The location is strategically positioned near popular attractions and transport links, catering to both business and leisure travelers. This expansion aligns with Lemon Tree’s strategy to strengthen its pilgrimage portfolio and capitalize on Punjab’s vibrant tourism and growing hotel infrastructure.

Lemon Tree Hotels Expands with New Property in Gurugram

Lemon Tree Hotels Limited has announced the opening of Lemon Tree Suites in Gurugram, marking its 11th property in Haryana. This expansion strengthens the brand’s presence in the northern region of India, particularly in Gurugram, a major financial and industrial hub. The new hotel, managed by Carnation Hotels Private Limited, features 246 rooms and suites, with 151 opening in the first phase. It offers a range of amenities including a multi-cuisine restaurant, a recreation bar, a spa, a fitness center, and a swimming pool, catering to both corporate and leisure travelers.

Lemon Tree Hotels Cancels Investor Meeting Due to Unforeseen Circumstances

Lemon Tree Hotels Ltd. announced the cancellation of its Analyst/Institutional Investor Meeting scheduled for December 5, 2025, due to unforeseen circumstances. This cancellation may affect stakeholders’ opportunities for direct engagement with the company’s management, potentially impacting investor relations and market perceptions.

Lemon Tree Hotels Expands with New Jaipur Property

Lemon Tree Hotels Limited has announced the signing of a new property, Lemon Tree Hotel at Pacific Mall in Jaipur, managed by its subsidiary Carnation Hotels Private Limited. This expansion strengthens the company’s presence in Rajasthan, offering 124 rooms and various amenities to cater to business and leisure travelers, enhancing its portfolio in the region.

Lemon Tree Hotels Faces Revised Tax Demand

Lemon Tree Hotels Ltd. has disclosed a revised tax demand of Rs. 42,92,353 received by its subsidiary, Berggruen Hotels Private Limited, from the Commercial Tax Officer in Bangalore. The demand includes tax, interest, and penalty under the CGST and KGST Acts for the 2018-19 period. The company believes the demand is not maintainable and is considering filing an appeal, indicating no significant impact on its financial operations beyond the specified amount.

Lemon Tree Hotels to Engage with Investors at Mumbai Conference

Lemon Tree Hotels Ltd. has announced its participation in an upcoming investor conference scheduled for December 5, 2025, in Mumbai. The company will engage in one-on-one and group meetings, utilizing publicly available documents for discussions, ensuring no undisclosed price-sensitive information is shared. This engagement reflects the company’s commitment to transparency and investor relations, potentially enhancing its market presence and stakeholder confidence.

Lemon Tree Hotels Expands with New Properties in Surat and Haridwar

Lemon Tree Hotels Limited has announced the signing of two new properties, Lemon Tree Hotel at Surat Airport and Keys Prima by Lemon Tree Hotels in Haridwar. The Surat property, managed by Carnation Hotels Private Limited, will cater to business travelers with its strategic location near the airport and Surat’s commercial hub. The Haridwar property will be franchised under Lemon Tree Hotels, expanding the company’s presence in Uttarakhand. These developments are expected to enhance Lemon Tree’s market positioning in Gujarat and Uttarakhand, providing fresh and vibrant experiences for guests.

Lemon Tree Hotels Expands with New Property in Bhopal

Lemon Tree Hotels Limited has announced the signing of a new property, Keys Select by Lemon Tree Hotels, in Bhopal, Madhya Pradesh. Managed by its subsidiary, Carnation Hotels Private Limited, this expansion will enhance the company’s presence in the region, offering 50 well-appointed rooms and various amenities to cater to both business and leisure guests. The strategic location in Bhopal, a city known for its blend of historical charm and modern development, positions Lemon Tree Hotels to attract a diverse clientele, further solidifying its market position in the hospitality industry.

Lemon Tree Hotels Achieves Record Q2 Revenue Amid Industry Challenges

Lemon Tree Hotels Limited reported its highest ever Q2 revenue at Rs. 308 crore, marking an 8% growth compared to the same quarter last year, despite facing industry challenges such as geopolitical tensions and GST revisions. This achievement underscores the company’s resilience and strong market positioning, which is crucial for stakeholders as it navigates through external economic pressures.

Lemon Tree Hotels Extends Trading Window Closure Amid Reorganization Evaluation

Lemon Tree Hotels Limited has announced the continued closure of its trading window in compliance with SEBI’s insider trading regulations. This decision comes as the company evaluates potential corporate reorganization options, with no recommendations or decisions made by the committee or board yet. The closure restricts designated persons and their immediate relatives from trading the company’s shares until further notice, ensuring compliance and transparency during this period of strategic evaluation.

Lemon Tree Hotels Expands Presence with New Gandhidham Property

Lemon Tree Hotels Limited announced the signing of a new property, Lemon Tree Hotel, Gandhidham, managed by its subsidiary Carnation Hotels Private Limited. This new hotel, featuring 54 rooms, a restaurant, a banquet hall, and recreational facilities, strengthens Lemon Tree’s presence in Gujarat, an important commercial hub near Kandla Port. The expansion aligns with the company’s vision of offering comfortable stays across various destinations, enhancing its business and leisure portfolio in the region.