LEMO

Lemon Tree HotelsNSEI:LEMONTREE Stock Report

Market Cap

₹32.3b

7D

2.8%

1Y

42.6%

Updated

16 Sep, 2021

Data

Company Financials +
LEMONTREE fundamental analysis
Snowflake Score
Valuation2/6
Future Growth5/6
Past Performance0/6
Financial Health1/6
Dividends0/6

LEMONTREE Overview

Lemon Tree Hotels Limited owns and operates a chain of business and leisure hotels.

Rewards

Trading at 72.3% below our estimate of its fair value

Earnings are forecast to grow 109.89% per year

Risk Analysis

No risks detected for LEMONTREE from our risk checks.

Lemon Tree Hotels Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Lemon Tree Hotels
Historical stock prices
Current Share Price₹41.00
52 Week High₹25.30
52 Week Low₹49.50
Beta1.32
1 Month Change2.63%
3 Month Change-0.97%
1 Year Change42.61%
3 Year Change-44.63%
5 Year Changen/a
Change since IPO-42.78%

Recent News & Updates

Jun 17
Analysts Are More Bearish On Lemon Tree Hotels Limited (NSE:LEMONTREE) Than They Used To Be

Analysts Are More Bearish On Lemon Tree Hotels Limited (NSE:LEMONTREE) Than They Used To Be

Today is shaping up negative for Lemon Tree Hotels Limited ( NSE:LEMONTREE ) shareholders, with the analysts delivering...

Mar 20
Have Lemon Tree Hotels Limited (NSE:LEMONTREE) Insiders Been Selling Their Stock?

Have Lemon Tree Hotels Limited (NSE:LEMONTREE) Insiders Been Selling Their Stock?

Investors may wish to note that an insider of Lemon Tree Hotels Limited , Aradhana Lal, recently netted ₹1.5m from...

Shareholder Returns

LEMONTREEIN HospitalityIN Market
7D2.8%2.0%1.6%
1Y42.6%59.3%59.4%

Return vs Industry: LEMONTREE underperformed the Indian Hospitality industry which returned 59.3% over the past year.

Return vs Market: LEMONTREE underperformed the Indian Market which returned 59.4% over the past year.

Price Volatility

Is LEMONTREE's price volatile compared to industry and market?
LEMONTREE volatility
LEMONTREE Beta1.32
Industry Beta0.92
Market Beta1

Stable Share Price: LEMONTREE is less volatile than 75% of Indian stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: LEMONTREE's weekly volatility (5%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
1992711Patu Keswanihttps://www.lemontreehotels.com

Lemon Tree Hotels Limited owns and operates a chain of business and leisure hotels. As of August 11, 2021, it operated 84 hotels with approximately 8,309 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 Fundamentals Summary

How do Lemon Tree Hotels's earnings and revenue compare to its market cap?
LEMONTREE fundamental statistics
Market Cap₹32.33b
Earnings (TTM)-₹1.25b
Revenue (TTM)₹2.54b

12.7x

P/S Ratio

-25.8x

P/E Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
LEMONTREE income statement (TTM)
Revenue₹2.54b
Cost of Revenue₹1.23b
Gross Profit₹1.32b
Expenses₹2.57b
Earnings-₹1.25b

Last Reported Earnings

Jun 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)-1.59
Gross Margin51.75%
Net Profit Margin-49.25%
Debt/Equity Ratio133.0%

How did LEMONTREE perform over the long term?

See historical performance and comparison

Valuation

Is Lemon Tree Hotels undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: LEMONTREE (₹41) is trading below our estimate of fair value (₹147.85)

Significantly Below Fair Value: LEMONTREE is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: LEMONTREE is unprofitable, so we can't compare its PE Ratio to the Indian Hospitality industry average.

PE vs Market: LEMONTREE is unprofitable, so we can't compare its PE Ratio to the Indian market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate LEMONTREE's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: LEMONTREE is overvalued based on its PB Ratio (3.5x) compared to the IN Hospitality industry average (1.4x).


Future Growth

How is Lemon Tree Hotels forecast to perform in the next 1 to 3 years based on estimates from 11 analysts?

109.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: LEMONTREE is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (6.8%).

Earnings vs Market: LEMONTREE is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: LEMONTREE's is expected to become profitable in the next 3 years.

Revenue vs Market: LEMONTREE's revenue (43% per year) is forecast to grow faster than the Indian market (12.6% per year).

High Growth Revenue: LEMONTREE's revenue (43% per year) is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: LEMONTREE's Return on Equity is forecast to be low in 3 years time (3.4%).


Past Performance

How has Lemon Tree Hotels performed over the past 5 years?

-73.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: LEMONTREE is currently unprofitable.

Growing Profit Margin: LEMONTREE is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: LEMONTREE is unprofitable, and losses have increased over the past 5 years at a rate of 73.7% per year.

Accelerating Growth: Unable to compare LEMONTREE's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: LEMONTREE is unprofitable, making it difficult to compare its past year earnings growth to the Hospitality industry (-53.8%).


Return on Equity

High ROE: LEMONTREE has a negative Return on Equity (-12.1%), as it is currently unprofitable.


Financial Health

How is Lemon Tree Hotels's financial position?


Financial Position Analysis

Short Term Liabilities: LEMONTREE's short term assets (₹2.3B) do not cover its short term liabilities (₹3.0B).

Long Term Liabilities: LEMONTREE's short term assets (₹2.3B) do not cover its long term liabilities (₹19.8B).


Debt to Equity History and Analysis

Debt Level: LEMONTREE's debt to equity ratio (133%) is considered high.

Reducing Debt: LEMONTREE's debt to equity ratio has increased from 54.5% to 133% over the past 5 years.


Balance Sheet


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: LEMONTREE has sufficient cash runway for more than 3 years based on its current free cash flow.

Forecast Cash Runway: Insufficient data to determine if LEMONTREE has enough cash runway if its free cash flow continues to grow or shrink based on historical rates.


Dividend

What is Lemon Tree Hotels's current dividend yield, its reliability and sustainability?

0.24%

Forecast Dividend Yield


Dividend Yield vs Market

Notable Dividend: Unable to evaluate LEMONTREE's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate LEMONTREE's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if LEMONTREE's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if LEMONTREE's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of LEMONTREE's dividend in 3 years as they are not forecast to pay a notable one for the Indian market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

5.0yrs

Average management tenure


CEO

Patu Keswani (62 yo)

no data

Tenure

₹34,847,000

Compensation

Mr. Patanjali Govind Keswani, also known as Patu serves as the Managing Director and Chairman of Lemon Tree Hotels Limited. Mr. Keswani has been with the Tata Group for most of his professional career and...


CEO Compensation Analysis

Compensation vs Market: Patu's total compensation ($USD473.93K) is above average for companies of similar size in the Indian market ($USD315.53K).

Compensation vs Earnings: Patu's compensation has increased whilst the company is unprofitable.


Leadership Team

Experienced Management: LEMONTREE's management team is seasoned and experienced (5 years average tenure).


Board Members

Experienced Board: LEMONTREE's board of directors are considered experienced (4.2 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: LEMONTREE insiders have only sold shares in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Lemon Tree Hotels Limited's employee growth, exchange listings and data sources


Key Information

  • Name: Lemon Tree Hotels Limited
  • Ticker: LEMONTREE
  • Exchange: NSEI
  • Founded: 1992
  • Industry: Hotels, Resorts and Cruise Lines
  • Sector: Consumer Services
  • Market Cap: ₹32.332b
  • Shares outstanding: 788.60m
  • Website: https://www.lemontreehotels.com

Number of Employees


Location

  • Lemon Tree Hotels Limited
  • Asset No. 6
  • Aerocity Hospitality District
  • New Delhi
  • Delhi
  • 110037
  • India

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/09/16 15:33
End of Day Share Price2021/09/16 00:00
Earnings2021/06/30
Annual Earnings2021/03/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.