Why is Lemon Tree Hotel falling/rising?

Aug 11 2025 11:00 PM IST
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As of 11-Aug, Lemon Tree Hotels Ltd is priced at 142.10, down 0.87%, and has underperformed its sector and the broader market recently, with a total decline of 7.28% over the last month. Despite these short-term challenges, the company shows strong long-term growth with a 26.77% annual increase in operating profit and positive quarterly results.
As of 11-Aug, Lemon Tree Hotels Ltd is currently priced at 142.10, reflecting a decrease of 1.25, or 0.87%. The stock has been underperforming recently, having fallen for three consecutive days, resulting in a total decline of 1.63% during this period. Today's performance indicates that it has underperformed its sector by 1.93%. Over the past week, the stock has decreased by 2.74%, and over the last month, it has seen a decline of 7.28%. Despite these short-term challenges, the company has demonstrated healthy long-term growth, with operating profit increasing at an annual rate of 26.77%. Additionally, it has reported positive results for the last four consecutive quarters, with significant growth in both profit before tax and profit after tax. High institutional holdings at 41.31% suggest confidence among informed investors, as their stake has increased by 0.72% over the previous quarter.

In the broader market context, Lemon Tree Hotels' recent performance contrasts with the Sensex, which has only declined by 0.51% over the past week and 2.30% over the past month. This indicates that the stock's short-term struggles are more pronounced compared to the overall market. While the stock has outperformed the BSE500 in the long term, generating an 18.66% return over the past year and significantly outperforming the benchmark over three years, the recent declines suggest a temporary setback in investor sentiment. The falling investor participation, with a notable decrease in delivery volume, further underscores the challenges the stock is currently facing despite its strong fundamentals.
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