ScoreWhy is Lemon Tree Hotels Ltd ?
1
High Debt Company with a Debt to Equity ratio (avg) at 2.27 times
- High Debt Company with a Debt to Equity ratio (avg) at 2.27 times
- The company has been able to generate a Return on Equity (avg) of 9.65% signifying low profitability per unit of shareholders funds
2
Healthy long term growth as Operating profit has grown by an annual rate 57.79%
3
The company has declared Positive results for the last 5 consecutive quarters
- PAT(Latest six months) At Rs 72.93 cr has Grown at 47.48%
- ROCE(HY) Highest at 15.93%
- DEBT-EQUITY RATIO(HY) Lowest at 1.67 times
4
With ROCE of 16.5, it has a Very Expensive valuation with a 4.7 Enterprise value to Capital Employed
- The stock is trading at a discount compared to its peers' average historical valuations
- Over the past year, while the stock has generated a return of 21.62%, its profits have risen by 44.9% ; the PEG ratio of the company is 1.3
5
High Institutional Holdings at 41.16%
- These investors have better capability and resources to analyse fundamentals of companies than most retail investors.
Real-Time Research ReportHow much should you hold?
- Overall Portfolio exposure to Lemon Tree Hotel should be less than 10%
- Overall Portfolio exposure to Hotels & Resorts should be less than 30%
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Hotels & Resorts)
When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock
Is Lemon Tree Hotel for you?
High Risk, High Return
Absolute
Risk Adjusted
Volatility
Lemon Tree Hotel
21.72%
0.61
35.32%
Sensex
4.83%
0.41
11.83%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
23.92%
EBIT Growth (5y)
57.79%
EBIT to Interest (avg)
1.54
Debt to EBITDA (avg)
11.24
Net Debt to Equity (avg)
1.56
Sales to Capital Employed (avg)
0.26
Tax Ratio
18.34%
Dividend Payout Ratio
0
Pledged Shares
0
Institutional Holding
41.16%
ROCE (avg)
8.50%
ROE (avg)
9.65%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
59
Industry P/E
50
Price to Book Value
10.53
EV to EBIT
28.70
EV to EBITDA
22.67
EV to Capital Employed
4.72
EV to Sales
11.03
PEG Ratio
1.32
Dividend Yield
NA
ROCE (Latest)
16.46%
ROE (Latest)
17.80%
Loading Valuation Snapshot...
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Mildly Bearish
Bullish
RSI
No Signal
No Signal
Bollinger Bands
Bullish
Bullish
Moving Averages
Bullish (Daily)
KST
Mildly Bearish
Mildly Bearish
Dow Theory
Mildly Bullish
No Trend
OBV
Bullish
Bullish
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend10What is working for the Company
PAT(Latest six months)
At Rs 72.93 cr has Grown at 47.48%
ROCE(HY)
Highest at 15.93%
DEBT-EQUITY RATIO(HY)
Lowest at 1.67 times
PBT LESS OI(Q)
At Rs 54.11 cr has Grown at 20.81%
-2What is not working for the Company
PBDIT(Q)
Lowest at Rs 130.73 cr.
OPERATING PROFIT TO NET SALES (Q)
Lowest at 42.68%
Loading Valuation Snapshot...
Here's what is working for Lemon Tree Hotel
Profit After Tax (PAT) - Latest six months
At Rs 72.93 cr has Grown at 47.48%
Year on Year (YoY)MOJO Watch
Near term PAT trend is very positive
PAT (Rs Cr)
Debt-Equity Ratio - Half Yearly
Lowest at 1.67 times and Fallen
each half year in the last five half yearly periodsMOJO Watch
The company has been reducing its borrowing as compared to equity capital
Debt-Equity Ratio
Profit Before Tax less Other Income (PBT) - Quarterly
At Rs 54.11 cr has Grown at 20.81%
Year on Year (YoY)MOJO Watch
Near term PBT trend is positive
PBT less Other Income (Rs Cr)
Here's what is not working for Lemon Tree Hotel
Operating Profit (PBDIT) - Quarterly
Lowest at Rs 130.73 cr.
in the last five quartersMOJO Watch
Near term Operating Profit trend is negative
Operating Profit (Rs Cr)
Operating Profit Margin - Quarterly
Lowest at 42.68%
in the last five quartersMOJO Watch
Company's efficiency has deteriorated
Operating Profit to Sales
Non Operating Income - Quarterly
Highest at Rs 1.72 cr
in the last five quartersMOJO Watch
Increased income from non business activities may not be sustainable
Non Operating Income
InfinHub Market Technologies FZ-LLC, Building-2, Unit 112, Dubai Internet City, Dubai, United Arab Emirates
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