Lemon Tree Hotels Ltd.
Consumer Goods · NSE
52-week range
₹100 – ₹181
From 52w high
-33.4%
RSI (14)
57.0
vs SMA 50 / 200
↑ 50 · ↓ 200
Lemon Tree Hotels (₹120) is an asset-light hospitality operator trading 33.6% below its 52-week high, 16.9% below the 200-DMA, and down 11.6% over 12 months. The business carries a debt-to-equity ratio of 109.6, a trailing PE of 43.2, and a 5-year earnings CAGR of 0% — yet forward PE falls to 28.4, suggesting the market is pricing in a recovery. Expansion signings (Amritsar, Raipur, Jalandhar) continued in April-May 2026 under a stated asset-light model.
- ✓Revenue has grown at a 5-year CAGR of 14.3%, indicating consistent top-line expansion across the hospitality cycle.
- ✓Free cash flow has been positive in 4 of the available tracked years, showing the business has generated cash from operations in most periods.
- ✓Forward PE of 28.4 represents a meaningful compression from the trailing PE of 43.2, reflecting market expectation of near-term earnings recovery.
- ✓PE of 43.2 ranks lowest (1st of 6) among Consumer Goods peers (TITAN at 76, TRENT at 87.4, DMART at 96.1, ASIANPAINT at 64.4), making it the least expensive on this multiple within the peer set.
- ✗Debt-to-equity of 109.6 is extreme for the Consumer Goods classification; combined with zero 5-year earnings CAGR, the leverage appears unsupported by earnings compounding.
- ✗Price has traded below the 200-DMA (₹144.46) with the stock at ₹120, a sustained 16.9% gap indicating prolonged underperformance relative to its own long-term trend.
- ✗Quality score of 36 ranks 4th of 6 peers, with ROE data unavailable — the combination of high leverage, stagnant earnings, and weak quality ranking presents a multi-dimensional concern.
- ✗The 52-week drawdown of 33.6% from the high, alongside negative 1-year and 3-month price performance (-11.6% and -7.2% respectively), shows consecutive deterioration across time horizons.
- ·Lemon Tree reported record FY 2025-26 signings under an asset-light expansion model, adding properties in Amritsar, Raipur, and Jalandhar between April and May 2026, according to TipRanks and Business Standard.
- ·Q4 2026 results were due as of May 8 (Mint coverage), with the earnings outcome not yet reflected in available structured data — the gap between trailing and forward PE may depend on these figures.
- ·Despite uniformly positive news flow (6 positive, 0 negative out of 8 tracked articles), the stock declined 7.24% over the most recent 3 months, a divergence between news sentiment and price action.
- ?Does the 14.3% 5-year revenue CAGR translate into earnings growth in the near term, given that 5-year earnings CAGR is reported at 0%?
- ?How sustainable is the asset-light expansion model under a debt-to-equity of 109.6 — and what would rising interest costs do to already thin profit margins of 15.6%?
- ?Is the forward PE of 28.4 (versus trailing 43.2) based on analyst consensus estimates, and what assumptions about occupancy and RevPAR underlie that earnings recovery?
- ?Does Lemon Tree's sector classification under Consumer Goods (alongside TITAN, DMART, TRENT) reflect a fair peer group for leverage, PE, and quality benchmarking, or would a hospitality-specific peer set change the relative picture?
PE
43.2
Forward PE
28.4
ROE
—
Profit margin
+15.6%
D/E
109.55
Dividend yield
—
Quality score
36/100
ROE 5y above 15%
2/5 yrs
FCF 5y positive
4/5 yrs
For informational purposes only. Not investment advice. VivaTrades is not a SEBI-registered Investment Adviser or Research Analyst. Market data sourced from public feeds; consult a registered adviser before any investment decision.Analysis generated 11 May 2026.