Lemon Tree Hotels Ltd – Q3 FY2025 Results
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Stock Overview
Market Cap: ₹11,682 Cr
Current Price: ₹147
52-Week High/Low: ₹162 / ₹112
Stock P/E: 65.3
Book Value: ₹12.8
Dividend Yield: 0.00%
ROCE: 11.4%
ROE: 16.3%
Debt: ₹2,270 Cr
Reserves: ₹224 Cr
Promoter Holding: 22.8%
OPM: 48.7%
Q3 FY2025 Financial Performance
Revenue: ₹1,235 Cr (YoY growth: 24.2%)
Operating Profit (EBITDA): ₹601 Cr (YoY growth: 31.5%)
Operating Profit Margin: 48.7% (up from 46.2% in Q3 FY2024)
Net Profit (PAT): ₹179 Cr (YoY growth: 42.6%)
Quarterly Sales Growth: 22.4%
Debt-to-Equity Ratio: 1.01
Hotel Pipeline & Expansion Plans
New Openings (FY2025-FY2027)
- Mumbai: Aurika, Navi Mumbai, Lemon Tree Premier
- Bangalore: Lemon Tree Premier & Red Fox
- Goa: Aurika Beach Resort, Candolim
- Jaipur: Lemon Tree Premier
- Pipeline cities: Chandigarh, Pune, Chennai, Coimbatore
Total Room Additions: ~2,500 new rooms by FY2027
International Expansion
- Middle East: Dubai, Abu Dhabi, Doha (under Aurika brand)
- South Asia: Nepal, Bhutan, and Sri Lanka
- Focus: High-end leisure travelers
Capital Expenditure & Strategic Rationale
Planned CapEx (FY2025-FY2027): ₹1,500 Cr
Major Investment Areas:
- New owned hotels in strategic locations
- Property refurbishment
- Technology & digital transformation
- Sustainability initiatives
Competitive Landscape
Key Competitors
- Indian Hotels (Taj, Vivanta, Ginger)
- EIH (Oberoi, Trident)
- Chalet Hotels & Marriott-managed properties
- Sarovar & Radisson
Competitive Advantages
- Asset-light expansion model
- Strong urban presence
- Cost leadership in operations
- Growing brand recognition
Risks & Challenges
Valuation Risk
- P/E of 65.3x above industry average
- EV/EBITDA at 21x indicates stretched valuation
Debt & Financial Risk
- ₹2,270 Cr debt burden
- Net debt/EBITDA: 3.8x
Market Risks
- Cyclical nature of hotel demand
- Potential corporate travel slowdown
- Competitive pricing pressure
Valuation Metrics
EV/EBITDA (FY25E): 21x (vs industry avg of ~18x)
Price-to-Book Ratio: 11.5x (vs sector average of 7x)
Disclaimer: This report is for informational purposes only and does not constitute investment advice. Investors should conduct their own research before making financial decisions.
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