Lemon Tree Q1 Results Review - Operating Margin Disappointed: IDBI Capital

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..IDBI Capital Report.Lemon Tree Hotels Ltd.’s Q1 FY25 net sales and Ebitda were in-line with our estimates while profit after tax was disappointed. Despite increase in revenue per available room on YoY, margins were impacted due to renovation expenses as well as increase in sales and marketing and payroll increase expenses. The quarterly performance was also marred by lower operational inventory as 25% of Keys inventory was shut down for renovation. The management aims to complete renovation by FY26 post-which, ~5,800 rooms to be fully functional with increased average room rate by ~Rs 2,000. Lemon Tree is optimistic on Aurika portfolio H2 FY25 to be two times of H1 FY25; expecting Aurika MIAL’s actual potential to start reflecting starting Q3 FY25. We have cut our net sales/Ebitda estimates by 2%/2% and 8%/7% over FY25E/FY26E. Maintain Buy with a revised target price of Rs 150 (earlier Rs 162), assigning 17 times enterprise value/Ebitda to FY26E. .Click on the attachment to read the full report:.Lemon Tree Hotels Falls To Two Month Low After Q1 Profit Misses Estimates .DISCLAIMERThis 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.

Lemon Tree Q1 Results Review - Operating Margin Disappointed: IDBI Capital

Though FY25E will see challenges on the company's margins front due to cost escalation, the brokerage expects revival in margins from FY26E.

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Lemon Tree Q1 Results Review - Operating Margin Disappointed: IDBI Capital

Though FY25E will see challenges on the company's margins front due to cost escalation, the brokerage expects revival in margins from FY26E.

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