Lemon Tree Hotels Limited Just Recorded A 7.0% EPS Beat: Here's What Analysts Are Forecasting Next

As you might know, Lemon Tree Hotels Limited (NSE:LEMONTREE) recently reported its full-year numbers. The result was positive overall - although revenues of ₹13b were in line with what the analysts predicted, Lemon Tree Hotels surprised by delivering a statutory profit of ₹2.48 per share, modestly greater than expected. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.

Trump has pledged to "unleash" American oil and gas and these 15 US stocks have developments that are poised to benefit.

After the latest results, the 16 analysts covering Lemon Tree Hotels are now predicting revenues of ₹15.1b in 2026. If met, this would reflect a meaningful 17% improvement in revenue compared to the last 12 months. Per-share earnings are expected to soar 36% to ₹3.37. Before this earnings report, the analysts had been forecasting revenues of ₹15.1b and earnings per share (EPS) of ₹3.35 in 2026. The consensus analysts don't seem to have seen anything in these results that would have changed their view on the business, given there's been no major change to their estimates.

Check out our latest analysis for Lemon Tree Hotels

It will come as no surprise then, to learn that the consensus price target is largely unchanged at ₹173. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. There are some variant perceptions on Lemon Tree Hotels, with the most bullish analyst valuing it at ₹210 and the most bearish at ₹135 per share. This shows there is still a bit of diversity in estimates, but analysts don't appear to be totally split on the stock as though it might be a success or failure situation.

Of course, another way to look at these forecasts is to place them into context against the industry itself. We would highlight that Lemon Tree Hotels' revenue growth is expected to slow, with the forecast 17% annualised growth rate until the end of 2026 being well below the historical 27% p.a. growth over the last five years. Juxtapose this against the other companies in the industry with analyst coverage, which are forecast to grow their revenues (in aggregate) 19% annually. So it's pretty clear that, while Lemon Tree Hotels' revenue growth is expected to slow, it's expected to grow roughly in line with the industry.

The Bottom Line

The most obvious conclusion is that there's been no major change in the business' prospects in recent times, with the analysts holding their earnings forecasts steady, in line with previous estimates. Happily, there were no real changes to revenue forecasts, with the business still expected to grow in line with the overall industry. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. At Simply Wall St, we have a full range of analyst estimates for Lemon Tree Hotels going out to 2028, and you can see them free on our platform here..

We don't want to rain on the parade too much, but we did also find 1 warning sign for Lemon Tree Hotels that you need to be mindful of.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.