Lemon Tree Hotels share price rises nearly 5%; Motilal Oswal predicts 26% upside

Lemon Tree Hotels share price jumped almost 5 per cent in morning trade on on Tuesday, January 2. Lemon Tree Hotels share price opened at 120.90 against the previous close of 118.70 and rose 5 per cent to the level of 124.50. Around 9:30 am, the stock was at 124.30, up 4.72 per cent. Lemon Tree Hotels share price jumped about 40 per cent in the year 2023, outperforming the equity benchmark Sensex which rose 19 per cent.

The midcap stock, however, slightly underperformed the BSE Midcap index which soared 46 per cent in 2023. Brokerage firm has a buy call on the stock with a target price of 150, implying a 26 per cent upside potential. "We expect strong momentum for Lemon Tree Hotels to continue going forward, led by: (i) further improvements in occupancy and ARR on the back of resilient demand and a boost from recently opened convention centres in key markets; (ii) an increase in ARR with the addition of Aurika Sky City Mumbai and room renovations; and (iii) addition of hotels under management contracts," said Motilal Oswal.

The brokerage firm expects Lemon Tree Hotels to deliver revenue, EBITDA and adjusted PAT CAGR of 21 per cent, 22 per cent and 38 per cent, respectively, over FY23 26 and improve RoE to nearly 22 per cent by FY26 from 14 per cent in FY23. (More to come) Read all market related news Livemint tops charts as the fastest growing news website in the world to know more.

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