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Lemon Tree Hotels Ltd logo

Lemon Tree Hotels Ltd

NSE: LEMONTREE BSE: 541233

111.14

(0.12%)

Mon, 25 May 2026, 00:45 am

Lemon Tree Hotels Analysis

dividend

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Pros

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    Cons

    • No need to calculate the sustainability of Lemon Tree Hotels's dividends in 3 years as they are not expected to pay a notable one for India.
    • Unable to evaluate Lemon Tree Hotels's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.
    • Unable to evaluate Lemon Tree Hotels's dividend against the top 25% market benchmark as the company has not reported any payouts.

    future

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    Pros

    • Cash flow for Lemon Tree Hotels is expected to increase by more than 50% in 2 years time.
    • Lemon Tree Hotels's earnings are expected to grow significantly at over 20% yearly.
    • Lemon Tree Hotels's earnings growth is expected to exceed the India market average.
    • Lemon Tree Hotels's earnings growth is expected to exceed the low risk savings rate of 7.2%.
    • Lemon Tree Hotels is expected to become profitable in 3 years time.
    • An improvement in Lemon Tree Hotels's performance (ROE) is expected over the next 3 years.
    • Lemon Tree Hotels's revenue growth is expected to exceed the India market average.
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    Cons

    • Lemon Tree Hotels is expected to be loss making next year.
    • Lemon Tree Hotels's is expected to be loss making in 2 years.
    • Lemon Tree Hotels is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
    • Performance (ROE) is not expected to exceed the current IN Hospitality industry average.
    • Lemon Tree Hotels's revenue is expected to increase but not above the 50% threshold in 2 years time.
    • Lemon Tree Hotels's revenue is expected to grow by 10.5% yearly, however this is not considered high growth (20% yearly).

    health

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    Pros

    • Lemon Tree Hotels has been profitable on average in the past, therefore cash runway is not a concern.
    • Lemon Tree Hotels has been profitable on average in the past, therefore cash runway is not a concern.
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    Cons

    • Lemon Tree Hotels's short term (1 year) commitments are greater than its holdings of cash and other short term assets.
    • Debt is not well covered by operating cash flow (9.8%, less than 20% of total debt).
    • Debt is not covered by short term assets, assets are 0.1x debt.
    • Lemon Tree Hotels's long term commitments exceed its cash and other short term assets.
    • The level of debt compared to net worth has increased over the past 5 years (46.4% vs 97.8% today).
    • Lemon Tree Hotels is making a loss, therefore interest payments are not well covered by earnings.
    • Lemon Tree Hotels's level of debt (97.8%) compared to net worth is high (greater than 40%).
    • High level of physical assets or inventory.

    management

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    Pros

    • The tenure for the Lemon Tree Hotels board of directors is about average.
    • Patu's remuneration is about average for companies of similar size in India.
    • More shares have been bought than sold by Lemon Tree Hotels individual insiders in the past 3 months.
    • The tenure for the Lemon Tree Hotels management team is about average.
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    Cons

    • Patu's compensation has increased whilst company is loss making.

    misc

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    Pros

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      Cons

      • Lemon Tree Hotels has significant price volatility in the past 3 months.

      past

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      Pros

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        Cons

        • Unable to compare Lemon Tree Hotels's 1-year earnings growth to the 5-year average as it is not currently profitable.
        • Lemon Tree Hotels does not make a profit even though their year on year earnings growth rate was positive over the past 5 years.
        • Lemon Tree Hotels used its assets less efficiently than the IN Hospitality industry average last year based on Return on Assets.
        • It is difficult to establish if Lemon Tree Hotels improved its use of capital last year versus 3 years ago (Return on Capital Employed) as it is currently loss-making.
        • It is difficult to establish if Lemon Tree Hotels has efficiently used shareholders’ funds last year (Return on Equity greater than 20%) as it is loss-making.
        • Unable to compare Lemon Tree Hotels's 1-year growth to the IN Hospitality industry average as it is not currently profitable.

        value

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        Pros

        • NSEI:LEMONTREE is up 72.8% outperforming the Hospitality industry which returned 11.5% over the past month.
        • NSEI:LEMONTREE is up 72.8% outperforming the market in India which returned 8% over the past month.
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        Cons

        • Lemon Tree Hotels's share price is above the future cash flow value, it's not available at a moderate discount (< 20%).
        • Lemon Tree Hotels's share price is above the future cash flow value, it's not available at a substantial discount (< 40%).
        • Lemon Tree Hotels is overvalued based on assets compared to the IN Hospitality industry average.
        • Lemon Tree Hotels is loss making, we can't compare its value to the IN Hospitality industry average.
        • Lemon Tree Hotels is loss making, we can't compare the value of its earnings to the India market.
        • LEMONTREE underperformed the Hospitality industry which returned -35.6% over the past year.
        • LEMONTREE underperformed the Market in India which returned -14.5% over the past year.

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