Buy Lemon Tree Hotels, target price Rs 57: Motilal Oswal

Motilal Oswal has buy call on Lemon Tree Hotels with a target price of Rs 57. The current market price of Lemon Tree Hotels Ltd. is Rs 40.1. 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 3192.75 Crore) operating in Tourism & Hospitality sector.

Financials
For the quarter ended 30-06-2021, the company reported a Consolidated Total Income of Rs 44.28 Crore, down -54.34 % from last quarter Total Income of Rs 96.97 Crore and up 1.14 % from last year same quarter Total Income of Rs 43.78 Crore. Company has reported net profit after tax of Rs -59.74 Crore in latest quarter.

Investment Rationale
The brokerage lowers FY22E EBITDA estimate by 7%, factoring in the performance of the current quarter and considering the current demand scenario. It maintains FY23E EBITDA estimate as well as Buy rating.


Promoter/FII Holdings
Promoters held 25.9 per cent stake in the company as of June 30, 2021, while FIIs held 22.4 per cent, DIIs 14.2 per cent and public and others 37.5 per cent.