Buy Lemon Tree Hotels, target price Rs 52: Motilal Oswal

Motilal Oswal has buy call on Lemon Tree Hotels with a target price of Rs 52. The current market price of Lemon Tree Hotels Ltd. is Rs 42.2. Time period given by analyst is one year when Lemon Tree Hotels Ltd. price can reach defined target.

Lemon Tree Hotels Ltd., incorporated in the year 1992, is a Mid Cap company (having a market cap of Rs 3343.28 Crore) operating in Tourism & Hospitality sector.

Financials
For the quarter ended 31-03-2021, the company reported a Consolidated Total Income of Rs 96.97 Crore, up 33.33 % from last quarter Total Income of Rs 72.73 Crore and down -45.07 % from last year same quarter Total Income of Rs 176.54 Crore. Company reported net profit after tax of Rs -24.65 Crore in latest quarter.


Investment Rationale
The brokerage has lowered FY22E EBITDA estimate by 43% (considering the current demand scenario on account of the second COVID wave) and has maintained FY23E EBITDA estimate.

Promoter/FII Holdings
Promoters held 25.9 per cent stake in the company as of March 31, 2021, while FIIs held 23.1 per cent, DIIs 15.3 per cent and public and others 35.7 per cent.