Lemon Tree Hotels Ltd., incorporated in the year 1992, is a Mid Cap company (having a market cap of Rs 4004.81 Crore) operating in Tourism & Hospitality sector.
Lemon Tree Hotels Ltd. key Products/Revenue Segments include Income from Rooms, Restaurants & Other Services and Other Operating Revenue for the year ending 31-Mar-2021.
Financials
For the quarter ended 30-09-2021, the company reported a Consolidated Total Income of Rs 98.82 Crore, up 123.17 % from last quarter Total Income of Rs 44.28 Crore and up 84.33 % from last year same quarter Total Income of Rs 53.61 Crore. Company reported net profit after tax of Rs -33.63 Crore in latest quarter.
Investment Rationale
Hotels are a deep cyclical business, which is hit first during an economic downturn and is the last to recover in an upcycle. The brokerage retains FY22-24E revenue/EBITDA estimates and expect ADRs to reach pre-Covid levels in H2FY23. Hence, the brokerage maintains BUY rating with a revised SoTP-based target price of Rs58/share (earlier Rs49/share) with a pre-Covid EV/EBITDA multiple of 20x (earlier 18x) and roll forward to Dec’23E EV/EBITDA (earlier Jun’23E EV/EBITDA).
Promoter/FII Holdings
Promoters held 25.88 per cent stake in the company as of 30-Sep-2021, while FIIs owned 20.11 per cent, DIIs 14.09 per cent.
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