Update shared on 15 Dec 2025
Analysts have modestly raised their price target on Lemon Tree Hotels to ₹182.53 per share from ₹182.53. This reflects slightly higher discount rate assumptions while maintaining broadly unchanged views on revenue growth, profit margins, and future valuation multiples.
What's in the News
- Rapid nationwide expansion with multiple new hotel signings and openings, including properties in Jaipur, Surat, Haridwar, Bhopal, Mahoba, Bhavnagar, Dehradun, Motihari, Kurali Kharar, Morbi, Ranchi, Gandhidham, Tirupati, Navi Mumbai, Malshej Ghat, Vijayawada and Varanasi, significantly deepening the managed and franchised portfolio (company announcements).
- Management signals an aggressive growth strategy, stating the company is looking at acquisitions and aiming to double its room pipeline to 35,000 to 40,000 rooms over the next approximately 2.5 years (earnings call commentary).
- Leadership change at the top, with the appointment of Neelendra Singh as Managing Director for a five year term effective October 1, 2025, bringing over two decades of experience in strategy and operations from consumer and retail brands (AGM disclosure).
- Ongoing corporate restructuring of the registered office, with board and shareholder approvals underway to shift the registered office from the Union Territory of Delhi to the state of Haryana. This requires changes to the Memorandum of Association (board and shareholder resolutions).
- Strong push into key religious, cultural and nature driven destinations such as Haridwar, Tirupati, Varanasi, Malshej Ghat and Mahoba. This reinforces the strategy of capturing spiritual and leisure travel demand across India (company announcements).
Valuation Changes
- Fair Value: Unchanged at approximately ₹182.53 per share, indicating no material shift in the intrinsic value estimate.
- Discount Rate: Risen slightly from about 15.40 percent to 15.52 percent, reflecting a marginally higher perceived risk or required return.
- Revenue Growth: Effectively unchanged at around 12.74 percent, suggesting stable expectations for top line expansion.
- Net Profit Margin: Stable at roughly 24.64 percent, indicating no meaningful revision to long term profitability assumptions.
- Future P/E: Edged up slightly from about 46.29x to 46.43x, implying a marginally higher valuation multiple on forecast earnings.
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