Lemon Tree Shares Snap Five-Day Fall After Profit Jumps In Q4

Shares of Lemon Tree Hotels Ltd. rose on Thursday, snapping their five-day losing streak after its profit jumped in the fourth quarter.

The company's consolidated net profit rose 42.3% to Rs 84 crore in the quarter ended March 2024, according to an exchange filing.

• Revenue up 29.5% to Rs 327 crore.

• Ebitda up 22.6% to Rs 171 crore .

• Margin at 52.4% versus 55.4%.

• Net profit up 42.3% to Rs 84 crore.

• Divergence on PAT level is due to a tax write back of Rs 13.7 crore.

In its investor presentation, the company said that it is on track to meet the given guidance for the next five years. By fiscal 2029, the company plans to achieve a stable net Ebitda of 50% and become a debt-free company.

The company also plans to increase the number of managed and franchised rooms to over 15000 from the current 4,104, and aim to achieve a total inventory of over 20,000 rooms from 9,863 by the end of the year ended in March 2024.

Shares of the company rose as much as 6.38% to Rs 147.5 apiece, the highest level since May 24. It pared gains to trade 1.15% higher at Rs 140.20 apiece as of 11:36 a.m. This compares to a 0.66% decline in the NSE Nifty 50.

The stock has risen 16.85% on a year-to-date basis and 45.86% in the last 12 months. Total traded volume so far in the day stood at 1.81 times its 30-day average. The relative strength index was at 43.91.

Out of 18 analysts tracking the company, 15 maintain a 'buy' rating, one recommend a 'hold,' and two suggest a 'sell,' according to Bloomberg data. The average 12-month consensus price target implies an upside of 10.3%.