Stratzy's Stock Pick Today: Buy Lemon Tree Hotels with Target Rs 165

On April 29, Stratzy issued a buy call on Lemon Tree Hotels, an Indian hotel chain, with a target price of Rs 165. The current market price of Lemon Tree Hotels is Rs 146.8, indicating a potential upside of around 12%. This recommendation is based on the company's strong financial performance, its focus on the budget and mid-scale segments, and its expansion plans. Lemon Tree Hotels has been consistently reporting healthy occupancy rates and revenue growth, and it has a strong balance sheet. The company is also well-positioned to benefit from the growing demand for budget and mid-scale hotels in India.

About Lemon Tree Hotels:

Lemon Tree Hotels Limited is a mid-priced hotel chain in India. Founded in 2002, it operates over 80 hotels in 49 cities across the country. The company's portfolio includes four brands: Lemon Tree Premier, which offers upscale accommodations; Lemon Tree, a mid-scale brand; Red Fox by Lemon Tree, a budget-friendly option; and Keys Select, a collection of upscale hotels. Lemon Tree Hotels is known for its focus on sustainability, and it has received numerous awards for its environmental initiatives. The company is publicly listed on the National Stock Exchange of India.

52 Week Price Trend:

Lemon Tree Hotels (NSE:LEMONTREE) has witnessed a notable upswing in its market value, currently trading at Rs 146.8. This represents a slight increase from its 52-week high of Rs 147.25 and a significant surge from its 52-week low of Rs 72.8. The strong recovery indicates investor confidence in the company's prospects. Despite facing challenges during the pandemic, Lemon Tree Hotels has demonstrated resilience and recovery, signaling its potential for long-term growth.

Stratzy's MOST Analysis:

LEMONTREE has been assigned a BB- rating under Stratzy's MOST framework. This rating reflects a moderate level of fundamental risks. The assessment considers the company's management team, industry outlook, financial safety, and overall stock trend. While the rating indicates some weaknesses in these areas, it suggests that LEMONTREE has a solid foundation and is generally well-positioned for growth and stability.

Fundamental and Technical information provided in this blog were last updated on 27 Apr, 2024

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