Lemon Tree Q4 Results Review - Decent Operating Performance: Prabhudas Lilladher

NDTV Profit’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer NDTV Profit’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.

Prabhudas Lilladher Report

Lemon Tree Hotels Ltd.’s operational performance was better than estimates with Ebitda margin of 52.4% (our estimate: 49.7%), despite higher renovation expense and deflationary impact of Aurika, Mumbai, which opened in Oct-23, but is not yet stable.

Nonetheless, Aurika’s Q4 FY24 KPIs are encouraging with occupancy of ~66% and ARR of Rs 9,000, and we expect revenues of Rs 2.4 billion/Rs 2.8 billion and Ebitda margin of 55%/60% in FY25E/FY26E, respectively.

Backed by the opening of Aurika, Mumbai, and expansion in managed room portfolio, we expect revenue/Ebitda compound annual growth rate of 18%/23% over FY24-FY26E.

We broadly maintain our estimates and retain ‘Buy’ on the stock with a revised target price of Rs 155 (earlier Rs 153) valuing it at an enterprise value/Ebitda multiple of 23 times (no change in target multiple).

Click on the attachment to read the full report:

Prabhudas Lilladher Lemon Tree Q4FY24 Results Review.pdf

Read Document

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

DISCLAIMER

This report is authored by an external party. NDTV Profit does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of NDTV Profit.

Users have no license to copy, modify, or distribute the content without permission of the Original Owner.