Anand Rathi has given Buy recommendation for Lemon Tree Hotels with a target price of Rs. 110 in its research report issued on Oct 03, 2022

Anand Rathi’s research report on Lemon Tree Hotels

We expect Lemon Tree Hotels’ Q2 FY23 to be on similar lines as in Q1, as it sees demand rising. International travel returning would further benefit it in coming months. Lemon Tree is set to open its largest hotel, Aurika (669 rooms), Mumbai (MIAL) by end-CY23 (construction on track) ~13% of its current inventory. Therefore we incorporate Aurika, MIAL, and introduce our FY25 estimates, anticipating the company to report revenue/EBITDA CAGRs of 47%/71% over FY22-FY25.


Hence, factoring in the above we raise our TP to Rs110 (from Rs85 earlier), valuing the stock at 18x FY25e EV/EBITDA from 20x FY24 EBITDA.

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