Investment Spotlight: Why Lemon Tree Hotel Stock Makes For Compelling Case

Don’t you think if your money is invested in some good stocks with excellent fundamentals, slinging with a little patience, then the chances of getting maximum profit escalate in real-time? Even during the Covid-19 period, there were many strong stocks accumulated as well. However, with the end of the pandemic, these stocks have regained momentum. Lemon Tree Hotels’ stake is also included in this. In the last two years, this multi-bagger stock has given a 550% return to investors. On Monday, June 5 too, the stock closed at INR 93.85 on BSE with a gain of 1.24%.

As per Moneycontrol, Lemon Tree Hotels’ shares fell to Rs 14.45 on May 20, 2020, during the first wave of the Corona epidemic. Following that, when the situation stabilized and the tourism industry began to revive, the stock of Lemon Tree Hotels began to recover. The stock’s 52-week high is Rs 103, while its 52-week low is Rs 58.30.

Lemon Tree Hotels had its best quarter ever from January to March 2023. In terms of the entire fiscal year 2023, the company exceeded its revenue and EBITDA targets. In 2022-23, it generated Rs 880 crore in sales and Rs 450 crore in EBITDA. As per brokerage firm ICICI Securities, FY 2022-23 was the year of recovery, and now the focus would be on the company’s expansion plan, debt reduction strategy, and demand and supply.

Lemon Tree Hotels shares have made investors wealthy in just two years. If an investor had invested INR 1 lakh in this stock two years ago and kept his investment, the value of his investment today is INR 649,480.

Following the March quarter results, brokerage company ICICI Securities raised its target price for Lemon Tree Hotels shares from INR 132 to INR 137 (Lemon Tree Hotels Target Price). According to the brokerage, demand might rise at a 10% CAGR between FY 2023 and FY 2027. The corporation intends to reduce debt beginning in the fiscal year 2025. Because of all of these factors, the brokerage has maintained its buy rating.

Lemon Tree Hotels currently owns and operates 84 hotels with a total of 8300 rooms in 52 cities across India

(Disclaimer: The stocks mentioned here are based on the advice of brokerage houses. Consult a certified investment advisor before investing. News18 is not responsible for your profit or loss of any kind. Will happen.)