Lemon Tree Hotels’ shares surged nearly 3% following a positive outlook from Axis Capital, which initiated coverage on the stock with an “Add” rating and a target price of ₹153.
Axis Capital highlighted a prolonged upcycle in the major Indian hotel industry, driven by structural factors that position it for long-term growth. The firm noted that hotel supply additions are expected to grow at a slower pace (9% CAGR for FY24-FY27E), well below the anticipated 12% demand growth, creating a favorable environment for operators. Key drivers include stronger corporate earnings boosting business travel, rising domestic travel due to higher disposable incomes, increased wedding spending, and a resurgence in foreign visitors.
Lemon Tree Hotels’ shares opened at ₹143.50, reaching a high of ₹147.75 and a low of ₹143.37 today. With a 52-week high of ₹158.00 and a low of ₹111.80, the stock shows steady performance.
As of 9:43 am, Lemon Tree Hotels shares were trading 2.18% higher at Rs 145.93 on the NSE.
Disclaimer: The information provided is for informational purposes only and should not be considered financial or investment advice. Stock market investments are subject to market risks. Always conduct your own research or consult a financial advisor before making investment decisions. Author or Business Upturn is not liable for any losses arising from the use of this information.
