Lemon Tree Hotels Ltd.
NSE: LEMONTREELemon Tree Hotels Ltd.: A 30-second snapshot
Lemon Tree Hotels (₹111.23) is trading 22.5% below its 200-DMA of ₹143.56 and 38.4% below its 52-week high, having declined 19.9% over the past 12 months. Trailing PE is 39.9 against a forward PE of 26.3, with debt-to-equity at 109.6 and five-year earnings CAGR at 0%. The analyst mean rating is 1.3 across 21 analysts on a 1–5 scale (lower = more constructive).
P/E
39.9
Forward P/E
26.3
ROE
—
Debt / Equity
109.55
Profit Margin
+15.6%
Div. Yield
—
5Y ROE > 15%
2/5
5Y FCF > 0
4/5
Quality
57/100
News
7 headlines · 6 positive · 0 negative
Lemon Tree Hotels Opens Keys Select Debut, Unlocking A New Gateway To Tourism In Assam - Travel And Tour World
Travel And Tour World
Lemon Tree Adds 30th Maharashtra Property with New Ahilyanagar Hotel - TipRanks
TipRanks
Lemon Tree Hotels Signs New Properties in Raipur and Jalandhar to Bolster Growth - TipRanks
TipRanks
Lemon Tree Hotels Limited Expands Footprint With New Signings In Raipur And Jalandhar - marketscreener.com
marketscreener.com
Price Action: PNB Housing, Lemon Tree Hotels surge on earnings and expansion news; midcaps see selective buying - TradingView
TradingView
Recent context
- ·Recent news flow covers new property openings and signings — Assam (Keys Select), 30th Maharashtra property in Ahilyanagar, and new signings in Raipur and Jalandhar — indicating continued asset-light expansion activity.
- ·The stock surged on an earnings and expansion news event in April 2026 alongside PNB Housing, per TradingView, though the 3-month price change of -17.1% suggests the move was not sustained.
- ·Despite entirely positive news sentiment across 7 articles, the stock is 38.4% below its 52-week high, creating a visible gap between news tone and price trajectory that the available data does not resolve.
Strengths
- +Revenue has grown at a 5-year CAGR of 14.3%, indicating top-line expansion even as earnings growth has stalled.
- +FCF was positive in 4 of the available years, suggesting the core hotel operating business has generated cash at the unit level in most periods.
- +Forward PE of 26.3 is 34% below the trailing PE of 39.9, reflecting market expectations of earnings recovery — a measurable compression if realized.
- +Trailing PE of 39.9 is the lowest among 6 Consumer Goods sector peers, where peers range from 65.0 (Asian Paints) to 95.1 (DMart), placing Lemon Tree at the least-expensive end of the peer set on this metric.
Weaknesses
- −Debt-to-equity of 109.6 is substantially above sector norms; this level of leverage in a cyclical, asset-heavy hospitality business elevates financial risk during revenue downturns.
- −Five-year earnings CAGR is 0% against a trailing PE of 39.9 — the earnings multiple has not been supported by commensurate earnings delivery over the measured period.
- −Price is 22.5% below the 200-DMA (₹143.56) and 38.4% below the 52-week high (implied ₹180.7), with both short-term (SMA50: ₹112.38) and long-term averages overhead.
- −Quality score of 39 out of 100 with ROE data unavailable; ROE has exceeded 15% in only 2 of measured years, and consistency score stands at 59 out of 100.
Open questions
- ?Does the 14.3% 5-year revenue CAGR translate into earnings growth under the current debt load, or does interest expense structurally suppress the bottom line?
- ?How does Lemon Tree's asset-light franchise expansion model affect the D/E ratio and FCF generation profile over the next 3–5 years compared with its owned-hotel portfolio?
- ?Is the forward PE compression from 39.9 to 26.3 driven by a consensus expectation of operating leverage kicking in, or does it reflect a rebase of the earnings denominator?
- ?What is the historical pattern between new property signings/openings and same-store RevPAR improvement, and does the current expansion pace translate to earnings per share growth?
Peer comparison: Consumer Goods
Ranks 3 of 6 on quality| Symbol | Name | P/E | ROE | Quality |
|---|---|---|---|---|
| LEMONTREE | Lemon Tree Hotels Ltd.You're viewing | 39.9 | — | 39 |
| Industry avg | across 5 peers | 79.5 | +19.6% | 37 |
| TRENT | Trent Ltd. | 84.8 | +27.1% | 49 |
| ETERNAL | Eternal Ltd. | — | +1.2% | 41 |
| DMART | Avenue Supermarts Ltd. | 95.1 | +12.9% | 37 |
| TITAN | Titan Company Ltd. | 72.9 | +37.1% | 34 |
| ASIANPAINT | Asian Paints Ltd. | 65.0 | — | 23 |
Technical state
Current price
₹111.23
SMA 50
₹112.38
SMA 200
₹143.56
RSI (14)
40.2 (neutral)
From 52w high
-38.4%
1Y return
-19.9%
3M return
-17.1%
50-DMA
Below
200-DMA
Below
Algorithmic support levels
Algorithmic resistance levels
Risk flags
- highDebt-to-equity of 109.6 is materially elevated; for context, this is a hospitality/consumer business where sector peers carry far lower leverage. Combined with 0% 5-year earnings CAGR and unavailable ROE data, the capital structure presents solvency-relevant leverage.
- highPrice at ₹111.23 is 22.5% below the 200-DMA (₹143.56) and 38.4% below the 52-week high. The stock has declined 19.9% over 12 months and 17.1% over the past 3 months, sustaining a prolonged downtrend on both short and long-term moving averages.
- mediumQuality score of 39 out of 100 ranks 3rd of 6 peers. FCF was positive in 4 of available years, but ROE data is unavailable and 5-year earnings growth is 0%, while the trailing PE stands at 39.9 — a combination that compresses the margin for further multiple compression.
- lowNews sample is small at 7 articles; all 6 non-neutral items are positive (0 negative), which may not represent the full coverage universe. Sentiment distribution should be read with caution given the limited sample size.
Cross-section contradictions
- News sentiment is uniformly positive (6 positive, 0 negative out of 7 articles) while the stock has declined 19.9% over 12 months and sits 38.4% below its 52-week high — no negative catalyst is visible in the news sample, leaving the divergence unexplained by available data.
- Forward PE of 26.3 implies material earnings recovery versus the trailing PE of 39.9, yet reported 5-year earnings CAGR is 0% — these two data points are in tension.
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.
Fundamentals & technicals: refreshed 25 Jun 2026 · refreshed daily at 01:00 IST
AI synthesis (narrative, snapshot, strengths/weaknesses, peer ranking): generated 17 May 2026 · rotates through NIFTY 500 every ~5 days