NSEI:LEMONTREE

Stock Analysis Report

Executive Summary

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

Snowflake

Fundamentals

Proven track record with reasonable growth potential.


Similar Companies

Share Price & News

How has Lemon Tree Hotels's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

1.5%

LEMONTREE

2.6%

IN Hospitality

3.9%

IN Market


1 Year Return

-18.1%

LEMONTREE

-5.2%

IN Hospitality

6.0%

IN Market

Return vs Industry: LEMONTREE underperformed the Indian Hospitality industry which returned -5.2% over the past year.

Return vs Market: LEMONTREE underperformed the Indian Market which returned 6% over the past year.


Shareholder returns

LEMONTREEIndustryMarket
7 Day1.5%2.6%3.9%
30 Day5.0%6.6%7.8%
90 Day-11.7%-1.8%2.5%
1 Year-18.1%-18.1%-4.8%-5.2%8.2%6.0%
3 Yearn/a18.1%14.9%23.0%16.7%
5 Yearn/a49.5%44.5%43.5%30.0%

Price Volatility Vs. Market

How volatile is Lemon Tree Hotels's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

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

0.4%

Undervalued compared to fair value


Share Price vs. Fair Value

Undervalued: LEMONTREE (₹56.5) is trading below our estimate of fair value (₹56.71)

Significantly Undervalued: LEMONTREE is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: LEMONTREE is poor value based on its PE Ratio (93.3x) compared to the Hospitality industry average (19.6x).

PE vs Market: LEMONTREE is poor value based on its PE Ratio (93.3x) compared to the Indian market (13.3x).


Price to Earnings Growth Ratio

Low PEG Ratio: LEMONTREE is poor value based on its PEG Ratio (2x)


Price to Book Ratio

PB vs Industry: LEMONTREE is overvalued based on its PB Ratio (5.1x) compared to the IN Hospitality industry average (1.2x).


Next Steps

Future Growth

How is Lemon Tree Hotels forecast to perform in the next 1 to 3 years based on estimates from 6 analysts?

45.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: LEMONTREE's forecast earnings growth (45.7% per year) is above the savings rate (7.6%).

Earnings vs Market: LEMONTREE's earnings (45.7% per year) are forecast to grow faster than the Indian market (18.2% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: LEMONTREE's revenue (17.7% per year) is forecast to grow faster than the Indian market (11.3% per year).

High Growth Revenue: LEMONTREE's revenue (17.7% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: LEMONTREE's Return on Equity is forecast to be low in 3 years time (12.1%).


Next Steps

Past Performance

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

76.8%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: LEMONTREE has become profitable over the past 5 years, growing earnings by 76.8% per year.

Accelerating Growth: LEMONTREE's earnings growth over the past year (159.6%) exceeds its 5-year average (76.8% per year).

Earnings vs Industry: LEMONTREE earnings growth over the past year (159.6%) exceeded the Hospitality industry 20.7%.


Return on Equity

High ROE: LEMONTREE's Return on Equity (4%) is considered low.


Return on Assets

ROA vs Industry: LEMONTREE's Return on Assets is below or equal to the Hospitality industry average last year.


Return on Capital Employed

ROCE Improving: LEMONTREE has significantly improved its Return on Capital Employed over the past 3 years.


Next Steps

Financial Health

How is Lemon Tree Hotels's financial position?


Financial Position Analysis

Short Term Liabilities: LEMONTREE's short term assets (₹2.0B) do not cover its short term liabilities (₹2.9B)

Long Term Liabilities: LEMONTREE's short term assets (2.0B) do not cover its long term liabilities (11.7B)


Debt to Equity History and Analysis

Debt Level: LEMONTREE's debt to equity ratio (92.4%) is considered high

Reducing Debt: LEMONTREE's debt to equity ratio has increased from 50.3% to 92.4% over the past 5 years.

Debt Coverage: LEMONTREE's debt is not well covered by operating cash flow (15.5%).

Interest Coverage: LEMONTREE's interest payments on its debt are not well covered by EBIT (1.4x coverage).


Balance Sheet

Inventory Level: LEMONTREE has a high level of physical assets or inventory.

Debt Coverage by Assets: LEMONTREE's debt is not covered by short term assets (assets are 0.2x debt).


Next Steps

Dividend

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

0.088%

Forecast Dividend Yield


Dividend Yield vs Market

companyn/amarketbottom25%0.6%markettop25%2.4%industryaverage0.5%forecastin3Years0.09%

Current dividend yield vs market & industry


Stability and Growth of Payments

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

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

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

What is the CEO of Lemon Tree Hotels's salary, the management and board of directors tenure and is there insider trading?

3.3yrs

Average management tenure


CEO

Patu Keswani (60yo)

0yrs

Tenure

₹33,856,000

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: Insufficient data to establish whether Patu's total compensation is reasonable compared to companies of similar size in the Indian market.

Compensation vs Earnings: Patu's compensation has increased by more than 20% in the past year.


Management Age and Tenure

3.3yrs

Average Tenure

51yo

Average Age

Experienced Management: LEMONTREE's management team is considered experienced (3.3 years average tenure).


Board Age and Tenure

2.3yrs

Average Tenure

57.5yo

Average Age

Experienced Board: LEMONTREE's board of directors are not considered experienced ( 2.3 years average tenure), which suggests a new board.


Insider Trading

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


Recent Insider Transactions

Sell₹286,25003 Oct 19
Arjun Sawhny
EntityIndividual
Shares5,000
Max Price₹57.25
Sell₹11,351,61301 Oct 19
Rahul Pandit
EntityIndividual
Shares200,000
Max Price₹56.76
Sell₹583,24501 Oct 19
Jagdish Chawla
EntityIndividual
Role
Senior Key Executive
Executive Vice President of Projects & Engineering Services
Shares10,000
Max Price₹58.32
Sell₹1,444,30601 Oct 19
Prashant Mehrotra
EntityIndividual
Shares25,000
Max Price₹57.77
Sell₹575,088,42226 Sep 19
Jaipuria Group
EntityCompany
Shares10,000,000
Max Price₹57.51
Sell₹1,194,99926 Sep 19
Jagdish Chawla
EntityIndividual
Role
Senior Key Executive
Executive Vice President of Projects & Engineering Services
Shares20,000
Max Price₹59.75
Sell₹1,337,34626 Sep 19
Prashant Mehrotra
EntityIndividual
Shares23,000
Max Price₹58.15
Sell₹2,887,74213 Sep 19
Arjun Sawhny
EntityIndividual
Shares53,718
Max Price₹53.76
Sell₹1,454,80811 Sep 19
Paramartha Saikia
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares27,500
Max Price₹52.90
Buy₹5,393,70630 Aug 19
Sparrow Buildwell Private Limited
EntityCompany
Shares100,000
Max Price₹53.94
Buy₹1,411,20430 Aug 19
Spank Management Services Private Limited
EntityCompany
Shares25,000
Max Price₹56.45
Buy₹59,276,66826 Aug 19
Toucan Real Estates Pvt Ltd.
EntityCompany
Shares1,100,000
Max Price₹53.89
Buy₹42,950,46626 Aug 19
Sparrow Buildwell Private Limited
EntityCompany
Shares800,000
Max Price₹53.69
Sell₹15,788,16226 Aug 19
Rahul Pandit
EntityIndividual
Shares300,000
Max Price₹52.63
Buy₹35,532,08217 Aug 19
Toucan Real Estates Pvt Ltd.
EntityCompany
Shares700,000
Max Price₹50.76
Sell₹1,675,99903 Jul 19
Abhijeet Ausekar
EntityIndividual
Shares25,000
Max Price₹67.04
Sell₹1,993,34403 Jul 19
Aradhana Lal
EntityIndividual
Shares30,000
Max Price₹66.44
Sell₹29,981,57027 Jun 19
Rahul Pandit
EntityIndividual
Shares461,478
Max Price₹64.97
Sell₹32,512,41324 Jun 19
Rahul Pandit
EntityIndividual
Shares495,594
Max Price₹67.40
Sell₹24,009,81510 Jun 19
Rahul Pandit
EntityIndividual
Shares339,013
Max Price₹70.83
Buy₹1,386,83410 Jun 19
Toucan Real Estates Pvt Ltd.
EntityCompany
Shares20,000
Max Price₹69.34
Buy₹693,81810 Jun 19
Patanjali Keswani
EntityIndividual
Role
Chief Executive Officer
Chairman & MD
Shares10,000
Max Price₹69.38
Sell₹1,402,72310 Jun 19
Abhijeet Ausekar
EntityIndividual
Shares20,000
Max Price₹70.14
Sell₹519,92704 Apr 19
Vikramjit Singh
EntityIndividual
Role
President
President
Shares6,500
Max Price₹80.01
Sell₹2,591,28320 Mar 19
Nitin Shivpuri
EntityIndividual
Shares32,297
Max Price₹80.23
Sell₹337,00020 Mar 19
Rajpal Singh
EntityIndividual
Shares4,000
Max Price₹84.50
Sell₹1,884,12314 Mar 19
Hari Ramaswamy
EntityIndividual
Shares25,900
Max Price₹72.75
Sell₹1,751,14914 Mar 19
Rajesh Kumar
EntityIndividual
Shares21,000
Max Price₹83.39
Sell₹1,569,48711 Mar 19
Rajiv Tyagi
EntityIndividual
Shares20,000
Max Price₹78.47
Sell₹1,175,97711 Mar 19
Davander Tomar
EntityIndividual
Role
Senior Key Executive
Executive Vice President of Corporate Affairs
Shares15,000
Max Price₹78.40
Sell₹395,00011 Mar 19
Rajesh Kumar
EntityIndividual
Shares5,000
Max Price₹79.00
Sell₹3,624,97011 Mar 19
Vikramjit Singh
EntityIndividual
Role
President
President
Shares37,000
Max Price₹97.97
Sell₹1,115,34111 Mar 19
Nitin Sharma
EntityIndividual
Shares14,428
Max Price₹77.30
Sell₹3,602,99611 Mar 19
Inder Batra
EntityIndividual
Shares45,000
Max Price₹80.07
Sell₹3,388,81711 Mar 19
Rajpal Singh
EntityIndividual
Shares44,000
Max Price₹82.87
Sell₹1,147,24005 Mar 19
Davander Tomar
EntityIndividual
Role
Senior Key Executive
Executive Vice President of Corporate Affairs
Shares15,000
Max Price₹76.48
Sell₹1,768,08205 Mar 19
Rajpal Singh
EntityIndividual
Shares23,477
Max Price₹75.31
Sell₹1,518,49905 Mar 19
Rajesh Kumar
EntityIndividual
Shares20,000
Max Price₹75.92
Sell₹1,536,62505 Mar 19
Naresh Kumar
EntityIndividual
Shares20,500
Max Price₹74.96
Sell₹15,931,14628 Feb 19
Aradhana Lal
EntityIndividual
Shares220,000
Max Price₹72.41
Sell₹1,475,99928 Feb 19
Jagdish Chawla
EntityIndividual
Role
Senior Key Executive
Executive Vice President of Projects & Engineering Services
Shares20,000
Max Price₹73.80
Sell₹518,44728 Feb 19
Vikramjit Singh
EntityIndividual
Role
President
President
Shares3,000
Max Price₹172.82
Sell₹851,53528 Feb 19
Prashant Mehrotra
EntityIndividual
Shares11,500
Max Price₹74.05
Sell₹17,078,20826 Feb 19
Cyrus Madan
EntityIndividual
Shares230,000
Max Price₹74.25
Sell₹756,29926 Feb 19
Rajesh Kumar
EntityIndividual
Shares10,000
Max Price₹75.63
Sell₹1,674,41026 Feb 19
Prashant Mehrotra
EntityIndividual
Shares22,700
Max Price₹73.76
Buy₹1,031,64321 Feb 19
Patanjali Keswani
EntityIndividual
Role
Chief Executive Officer
Chairman & MD
Shares14,000
Max Price₹73.69
Sell₹704,59806 Feb 19
Vikramjit Singh
EntityIndividual
Role
President
President
Shares10,000
Max Price₹70.46
Sell₹2,104,19901 Feb 19
Rajesh Kumar
EntityIndividual
Shares30,000
Max Price₹70.14
Sell₹691,10201 Feb 19
Vikramjit Singh
EntityIndividual
Role
President
President
Shares10,000
Max Price₹69.11
Sell₹194,66517 Jan 19
Vikramjit Singh
EntityIndividual
Role
President
President
Shares2,746
Max Price₹70.89
Sell₹207,55709 Jan 19
Vikramjit Singh
EntityIndividual
Role
President
President
Shares3,000
Max Price₹69.19
Sell₹343,29208 Jan 19
Vikramjit Singh
EntityIndividual
Role
President
President
Shares5,000
Max Price₹68.66
Sell₹1,165,58503 Jan 19
Vikramjit Singh
EntityIndividual
Role
President
President
Shares15,818
Max Price₹73.76
Sell₹14,761,92103 Jan 19
Cyrus Madan
EntityIndividual
Shares200,000
Max Price₹74.05
Sell₹139,31919 Dec 18
Vikramjit Singh
EntityIndividual
Role
President
President
Shares2,000
Max Price₹69.66
Buy₹1,309,38513 Dec 18
Sparrow Buildwell Private Limited
EntityCompany
Shares20,000
Max Price₹65.47
Buy₹2,107,12407 Dec 18
Sparrow Buildwell Private Limited
EntityCompany
Shares31,238
Max Price₹67.45
Sell₹238,83605 Dec 18
Vikramjit Singh
EntityIndividual
Role
President
President
Shares3,400
Max Price₹70.25
Buy₹1,293,99905 Dec 18
Sparrow Buildwell Private Limited
EntityCompany
Shares18,762
Max Price₹68.97
Sell₹1,522,47429 Nov 18
Kapil Sharma
EntityIndividual
Role
Chief Financial Officer
Executive VP & CFO
Shares20,000
Max Price₹76.12
Sell₹4,618,83929 Nov 18
Vikramjit Singh
EntityIndividual
Role
President
President
Shares62,000
Max Price₹74.50
Sell₹1,240,67429 Nov 18
Davander Tomar
EntityIndividual
Role
Senior Key Executive
Executive Vice President of Corporate Affairs
Shares16,684
Max Price₹74.36
Sell₹1,472,27627 Nov 18
Davander Tomar
EntityIndividual
Role
Senior Key Executive
Executive Vice President of Corporate Affairs
Shares20,000
Max Price₹73.61
Sell₹1,787,49927 Nov 18
Rupesh Singh
EntityIndividual
Shares25,000
Max Price₹71.50
Sell₹3,261,59626 Nov 18
Vikramjit Singh
EntityIndividual
Role
President
President
Shares44,999
Max Price₹72.48
Sell₹2,440,34322 Nov 18
Vikramjit Singh
EntityIndividual
Role
President
President
Shares54,891
Max Price₹70.71

Ownership Breakdown


Management Team

  • Patu Keswani (60yo)

    Chairman & MD

    • Tenure: 0yrs
    • Compensation: ₹33.86m
  • Kapil Sharma (50yo)

    Executive VP & CFO

    • Tenure: 5.1yrs
  • Davander Tomar (58yo)

    Executive Vice President of Corporate Affairs

    • Tenure: 0yrs
  • Jagdish Chawla (62yo)

    Executive Vice President of Projects & Engineering Services

    • Tenure: 0yrs
  • Ajai Kumar (51yo)

    Chief Information Officer

    • Tenure: 0yrs
  • Nikhil Sethi (39yo)

    GM of Legal

    • Tenure: 3yrs
  • Vikramjit Singh (43yo)

    President

    • Tenure: 3.5yrs
  • Rattan Keswani (58yo)

    Deputy MD & Director

    • Tenure: 0yrs
  • Mahesh Aiyer (48yo)

    Senior Vice President of Operations - South

    • Tenure: 0.8yrs
  • Ritu Ranjan (51yo)

    Chief Design Officer

    • Tenure: 3.1yrs

Board Members

  • Pradeep Mathur (61yo)

    Independent Director

    • Tenure: 1.8yrs
    • Compensation: ₹100.00k
  • Arvind Singhania (55yo)

    Independent Director

    • Tenure: 2.3yrs
    • Compensation: ₹60.00k
  • Ravi Jaipuria (64yo)

    Non-Executive Director

    • Tenure: 0yrs
  • Patu Keswani (60yo)

    Chairman & MD

    • Tenure: 0yrs
    • Compensation: ₹33.86m
  • Rattan Keswani (58yo)

    Deputy MD & Director

    • Tenure: 0yrs
  • Freyan Desai (57yo)

    Independent Director

    • Tenure: 2.3yrs
    • Compensation: ₹80.00k
  • Ashish Guha (63yo)

    Independent Director

    • Tenure: 2.3yrs
    • Compensation: ₹100.00k
  • Aditya Keswani (28yo)

    Non-Executive Director

    • Tenure: 0yrs
  • Willem Hazeleger (50yo)

    Non-Executive Director

    • Tenure: 2.2yrs
  • Paramartha Saikia (57yo)

    Independent Director

    • Tenure: 2.3yrs
    • Compensation: ₹100.00k

Company Information

Lemon Tree Hotels Limited's company bio, 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: ₹44.595b
  • Shares outstanding: 789.30m
  • 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

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
LEMONTREENSEI (National Stock Exchange of India)YesEquity SharesININRApr 2018
541233BSE (Mumbai Stock Exchange)YesEquity SharesININRApr 2018

Biography

Lemon Tree Hotels Limited owns and operates a chain of business and leisure hotels in India. The company operates its hotels under the Lemon Tree Premier, Lemon Tree Hotels, and Red Fox Hotels brands. As o ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/20 12:45
End of Day Share Price2019/10/18 00:00
Earnings2019/06/30
Annual Earnings2019/03/31


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.