Lemon Tree Hotels shares gain as CLSA sees 42% upside on 2,000 keys target by this year

Résumé détaillé

CLSA has maintained its "outperform" rating on the Lemon Tree Hotels with a target price of ₹163 per share. This indicates an upside of 41.6% from its previous closing price.

Shares of Lemon Tree Hotels Ltd. gained as much as 5% on Thursday, November 12, after global investment banking firm CLSA reiterated its bullish stance on the stock.

CLSA has maintained its "outperform" rating on the Lemon Tree Hotels with a target price of ₹163 per share. This indicates an upside of 41.6% from its previous closing price.

CLSA said Lemon Tree Hotels reported a record second quarter, with revenue above estimates led by increases in both average room rate (ARR) and occupancy. Its margin beat estimates and improved from the year-ago period despite the GST impact and provision for SAR, CLSA said.

It added that the company remains on track to open 2,000 keys in the financial year 2027 with pace to accelerate FY28 onwards.

Lemon Tree Hotels has also signed an MoU with Omaxe in the second quarter to manage its upcoming 4,000 keys, one of its largest contracts.

The company expects margins to improve as its major renovation nears completion and operating leverage from upcoming keys, CLSA said.

Lemon Tree Hotels reported its second quarter results last week. Its consolidated net profit increased 63.7% to ₹56.6 crore from ₹34.6 crore last year.

The company's earnings before interest, taxes, depreciation and amortization (EBITDA) increased 22.2% to ₹159.7 crore from ₹130.7 crore in the previous fiscal. Its EBITDA margin expanded to 44.2% from 42.7% in the year-ago period.

Of the 27 analysts who have coverage on the Lemon Tree Hotels stock, 25 have a "buy" rating while two have "hold" recommendations. The stock does not have any "sell" recommendation on the stock.

Début de l'article, extrait de CNBC-TV18. Pour lire la suite, ouvrez l'article chez le média.