Buy Lemon Tree Hotels, target price Rs 50: Motilal Oswal

Motilal Oswal has buy call on with a target price of Rs 50. The current market price of Lemon Tree Hotels Ltd. is Rs 41.55.

Lemon Tree Hotels Ltd., incorporated in the year 1992, is a Mid Cap company (having a market cap of Rs 3283.86 Crore) operating in Tourism & Hospitality sector.

Financials
For the quarter ended 31-12-2020, the company reported a Consolidated sales of Rs 68.38 Crore, up 43.66 % from last quarter Sales of Rs 47.60 Crore and down -65.75 % from last year same quarter Sales of Rs 199.62 Crore Company reported net profit after tax of Rs -45.66 Crore in latest quarter.

Investment Rationale
Factoring in the current demand scenario, particularly in business travel, the brokerage has lowered FY21E EBITDA estimate by 12% and have largely maintained FY22E/FY23E EBITDA estimates

Promoter/FII Holdings
Promoters held 31.1 per cent stake in the company as of Sept 30, 2020, while FIIs held 18.5 per cent, DIIs 16.3 per cent and public and others 34.1 per cent.