NSEI:LEMONTREE

Stock Analysis Report

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Executive Summary

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


Snowflake Analysis

Limited growth with weak fundamentals.


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

Stable Share Price: LEMONTREE has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-0.4%

LEMONTREE

-2.1%

IN Hospitality

-1.1%

IN Market


1 Year Return

-55.4%

LEMONTREE

-22.3%

IN Hospitality

-1.4%

IN Market

Return vs Industry: LEMONTREE underperformed the Indian Hospitality industry which returned -22.3% over the past year.

Return vs Market: LEMONTREE underperformed the Indian Market which returned -1.4% over the past year.


Shareholder returns

LEMONTREEIndustryMarket
7 Day-0.4%-2.1%-1.1%
30 Day-3.2%-5.6%2.0%
90 Day15.5%16.7%6.4%
1 Year-55.4%-55.4%-19.3%-22.3%0.4%-1.4%
3 Yearn/a-10.5%-18.3%-3.9%-8.6%
5 Yearn/a18.7%5.5%38.9%28.5%

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?

2.62x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: LEMONTREE (₹27.25) is trading above our estimate of fair value (₹2.48)

Significantly Below Fair Value: LEMONTREE is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: LEMONTREE is unprofitable, so we can't compare its PE Ratio to the IN 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 (2.6x) compared to the IN Hospitality industry average (0.7x).


Next Steps

Future Growth

How is Lemon Tree Hotels forecast to perform in the next 1 to 3 years based on estimates from 10 analysts?

123.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: LEMONTREE is forecast to remain unprofitable over the next 3 years.

Earnings vs Market: LEMONTREE is forecast to remain unprofitable over the next 3 years.

High Growth Earnings: LEMONTREE is forecast to remain unprofitable over the next 3 years.

Revenue vs Market: LEMONTREE's revenue (34.1% per year) is forecast to grow faster than the Indian market (11.3% per year).

High Growth Revenue: LEMONTREE's revenue (34.1% per year) is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: LEMONTREE is forecast to be unprofitable in 3 years.


Next Steps

Past Performance

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

19.4%

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, but has reduced losses over the past 5 years at a rate of 19.4% 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 (-47.4%).


Return on Equity

High ROE: LEMONTREE has a negative Return on Equity (-4.63%), as it is currently unprofitable.


Next Steps

Financial Health

How is Lemon Tree Hotels's financial position?


Financial Position Analysis

Short Term Liabilities: LEMONTREE's short term assets (₹1.6B) do not cover its short term liabilities (₹3.0B).

Long Term Liabilities: LEMONTREE's short term assets (₹1.6B) do not cover its long term liabilities (₹19.2B).


Debt to Equity History and Analysis

Debt Level: LEMONTREE's debt to equity ratio (97.8%) is considered high.

Reducing Debt: LEMONTREE's debt to equity ratio has increased from 47.5% to 97.8% over the past 5 years.

Debt Coverage: LEMONTREE's debt is not well covered by operating cash flow (9.8%).

Interest Coverage: LEMONTREE is unprofitable, therefore interest payments are not well covered by earnings.


Balance Sheet


Next Steps

Dividend

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

0.83%

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?

4.1yrs

Average management tenure


CEO

Patu Keswani (61 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 ($USD469.64K) is above average for companies of similar size in the Indian market ($USD316.35K).

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


Leadership Team

NamePositionTenureCompensationOwnership
Patanjali Keswani
Chairman & MDno data₹34.85m3.53%
₹ 772.6m
Vikramjit Singh
President4.5yrs₹8.16m0.057%
₹ 12.5m
Kapil Sharma
Executive VP & CFO6.08yrs₹10.96m0.16%
₹ 35.2m
Nikhil Sethi
GM of Legal3.33yrs₹3.82mno data
Harleen Mehta
Senior Vice President of Sales1.75yrs₹8.50mno data
Davander Tomar
Executive Vice President of Corporate Affairsno data₹10.44m0.052%
₹ 11.4m
Mahesh Aiyer
Senior Vice President of Operations - South1.75yrs₹7.75mno data
Rattan Keswani
Deputy MD & Executive Directorno datano data0.054%
₹ 11.9m
Ritu Ranjan
Chief Design Officer4.08yrs₹9.52mno data
Ajai Kumar
Chief Information Officerno datano datano data
Rajesh Kumar
Vice President of Human Resources5yrs₹3.58m0.020%
₹ 4.3m
Cyrus Madan
Senior Vice President of Business Development1.75yrsno data0.10%
₹ 22.4m

4.1yrs

Average Tenure

51.5yo

Average Age

Experienced Management: LEMONTREE's management team is considered experienced (4.1 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Patanjali Keswani
Chairman & MDno data₹34.85m3.53%
₹ 772.6m
Rattan Keswani
Deputy MD & Executive Directorno datano data0.054%
₹ 11.9m
Pradeep Mathur
Independent Non-Executive Director2.83yrs₹150.00kno data
Arvind Singhania
Non-Executive Independent Director3.33yrs₹50.00k0.025%
₹ 5.6m
Ashish Kumar Guha
Non-Executive Independent Director3.33yrs₹175.00kno data
Ravi Jaipuria
Non-Executive Director16.83yrsno datano data
Freyan Desai
Non-Executive Independent Director3.33yrs₹155.00kno data
Aditya Keswani
Non-Executive Directorno datano datano data
Willem Hazeleger
Non-Executive Director3.17yrsno datano data
Paramartha Saikia
Independent Non-Executive Director3.33yrs₹205.00k0.016%
₹ 3.5m
Arindam Bhattacharya
Additional Non-executive Independent Director1.5yrsno data0.088%
₹ 19.2m

3.3yrs

Average Tenure

58.5yo

Average Age

Experienced Board: LEMONTREE's board of directors are considered experienced (3.3 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold 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 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: ₹21.878b
  • Shares outstanding: 788.41m
  • 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. As of October 07, 2020, it operated 81 hotels with 8,050 rooms across 49 destinations in India and internationally under ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/10/29 12:33
End of Day Share Price2020/10/29 00:00
Earnings2020/06/30
Annual Earnings2020/03/31


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.