Lemon Tree Hotels Ltd (LEMONTREE) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

Ventive Hospital

Chalet Hotels

Lemon Tree Hotel

Samhi Hotels

EIH

Juniper Hotels

Mahindra Holiday

Apeejay Surrend.

I T D C

ITC Hotels

Leela Palaces Ho

Why is Lemon Tree Hotels Ltd ?

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

With ROCE of 16.5, it has a Expensive valuation with a 3.8 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 -10.33%, its profits have risen by 44.9% ; the PEG ratio of the company is 1

Underperformed the market in the last 1 year

Even though the market (BSE500) has generated returns of 8.47% in the last 1 year, the stock has hugely underperformed and has generate negative returns of -10.33% returns

Real-Time Research Report

Verdict Report

How much should you sell?

All quantity irrespective of whether you are making profits or losses

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Hotels & Resorts)

When to re-enter? - We will constantly monitor the company and review our call based on new data

Is Lemon Tree Hotel for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

Lemon Tree Hotel

-10.33%

-0.30

33.88%

Sensex

7.88%

0.70

11.23%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality 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

Pledged Shares

Institutional Holding

40.96%

ROCE (avg)

8.50%

ROE (avg)

9.65%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

7.99

EV to EBIT

22.65

EV to EBITDA

17.90

EV to Capital Employed

3.73

EV to Sales

8.71

PEG Ratio

1.00

Dividend Yield

ROCE (Latest)

16.46%

ROE (Latest)

17.80%

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Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Mildly Bearish

Dow Theory

Mildly Bearish

OBV

No Trend

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

10What 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%

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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 periods

MOJO 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 quarters

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (Rs Cr)

Operating Profit Margin - Quarterly

Lowest at 42.68%

in the last five quarters

MOJO Watch

Company's efficiency has deteriorated

Operating Profit to Sales

Non Operating Income - Quarterly

Highest at Rs 1.72 cr

in the last five quarters

MOJO Watch

Increased income from non business activities may not be sustainable

Non Operating Income