Analysts have raised their price target for Lemon Tree Hotels from ₹175.94 to ₹181.71, citing improvements in projected profit margin and a slight reduction in the discount rate as key drivers for this upward revision.
What's in the News
- Lemon Tree Hotels has announced plans to seek acquisitions and aims to double its pipeline to 35,000 to 40,000 rooms within the next 2.5 years (Key Developments).
- The company launched Lemon Tree Premier in Thiruvananthapuram, further strengthening its presence in Kerala with a flagship property in the state capital (Key Developments).
- Lemon Tree Hotels continues rapid expansion, announcing new managed and franchised properties across Dehradun, Bhavnagar, Motihari, Kurali, Morbi, Ranchi, Gandhidham, Jaipur, Tirupati, and Navi Mumbai (Key Developments).
- Neelendra Singh has been appointed as Managing Director for a five-year term and brings over 26 years of leadership and operational experience (Key Developments).
- The company is considering shifting its registered office from the Union Territory of Delhi to the State of Haryana, pending shareholder approval (Key Developments).
Valuation Changes
- Fair Value increased from ₹175.94 to ₹181.71, reflecting a modest rise in the estimated intrinsic value per share.
- Discount Rate declined from 15.97% to 15.41%, indicating lower perceived risk and a more favorable investment outlook.
- Revenue Growth was slightly reduced from 12.66% to 12.41%, suggesting a marginally tempered outlook for top-line expansion.
- Net Profit Margin improved from 23.91% to 24.35%, signaling expectations for stronger profitability going forward.
- Future P/E decreased from 47.59x to 45.71x, implying a lower valuation on forecasted earnings.
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