Lemon Tree Hotels Ltd. (LEMONTREE) AI Stock Analysis

• Market Cap: ₹129.06B
• Dividend Yield: N/A
• Average Volume (3M): 214.09K
• Price to Earnings (P/E): 58.6
• Beta (1Y): 1.14
• Revenue Growth: 16.03%
• EPS Growth: 44.95%
• Country: IN
• Employees: 5,272
• Sector: Services
• Sector Strength: N/A
• Industry: Travel Lodging
• EPS (TTM): 0.40
• 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: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 54 Neutral
• Price Target: ₹152.00 ▼(-6.69% 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: Positive
• Last Price: 162.90
• 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 162.9 is above the 20-day moving average (MA) of 157.85, above the 50-day MA of 162.16, and above the 200-day MA of 149.86, indicating a bullish trend. The MACD of 0.53 indicates Negative momentum. The RSI at 53.79 is Neutral, neither overbought nor oversold. The STOCH value of 43.57 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	72 Outperform	₹24.22B	16.74	―	0.52%	9.49%	40.16%
PARKHOTELS	61 Neutral	₹28.24B	31.96	―	0.39%	14.08%	29.33%
ROHLTD	61 Neutral	₹10.54B	22.83	―	0.65%	10.77%	-4.40%
ORIENTHOT	59 Neutral	₹18.99B	38.40	―	0.47%	19.69%	17.02%
MHRIL	57 Neutral	₹63.43B	47.37	―	―	4.25%	17.51%
Sector *	55 Neutral	$13.29B	17.42	10.03%	0.93%	7.13%	-12.93%
LEMONTREE	54 Neutral	₹129.06B	58.62	―	―	16.03%	44.95%

Lemon Tree Hotels Ltd. Corporate Events

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.

Lemon Tree Hotels Expands in Andhra Pradesh with New Tirupati Property

Lemon Tree Hotels Limited has announced the opening of its sixth property in Andhra Pradesh, the Lemon Tree Premier in Tirupati. This new hotel, managed by Carnation Hotels Private Limited, features 111 rooms and suites, with the first phase opening 54 rooms along with the Citrus Café. The remaining facilities, including additional rooms, a bar, banquet spaces, and recreational amenities, will open in the second phase. Positioned in Tirupati, a major pilgrimage and urban center, this hotel aims to cater to the growing demand for contemporary accommodations in religious and spiritual destinations.

Lemon Tree Hotels Expands with New Franchise in Maharashtra

Lemon Tree Hotels Limited has announced the signing of a new franchise agreement for Keys Prima by Lemon Tree Hotels, Saj by the Lake, located in Malshej Ghat, Maharashtra. This new property, featuring 55 rooms and various amenities, aims to cater to nature lovers and travelers seeking leisure and business experiences. The partnership with SAJ Hotels Ltd. aligns with Lemon Tree’s strategy to expand its leisure portfolio in Maharashtra and strengthen its market presence.

Lemon Tree Hotels Expands in Andhra Pradesh with New Vijayawada Property

Lemon Tree Hotels Limited has announced the opening of its fifth property in Andhra Pradesh, Keys Lite by Lemon Tree Hotels, Krishna, Vijayawada. This new hotel, managed by Carnation Hotels Private Limited, features 44 well-appointed rooms, a multi-cuisine restaurant, and a boardroom, enhancing the company’s presence in the region. The strategic location of Vijayawada, known for its cultural landmarks and rapid urbanization, positions the hotel to attract both business and leisure travelers, strengthening Lemon Tree’s market positioning and offering stakeholders potential growth opportunities.

Lemon Tree Hotels Subsidiary Receives Delhi High Court Judgment

Lemon Tree Hotels Ltd. has disclosed that its subsidiary, Hyacinth Hotels Private Limited, received a judgment from the Delhi High Court regarding a writ petition filed against an assessment order by the Municipal Corporation of Delhi. The court’s decision, which was received on September 16, 2025, does not materially impact the financial operations of Lemon Tree Hotels. Hyacinth Hotels is considering further legal actions.