Macquarie has maintained an ‘Outperform’ rating on Lemon Tree Hotels, setting a target price of ₹210 per share, indicating a 60.7% upside potential from the current market price of ₹130.69.
The brokerage highlights that Lemon Tree is driving hotel penetration into mid-market and Tier-2/3 cities in India, capitalizing on the growing demand for business and leisure travel. The company’s asset-light focus positions it well for high free cash flow (FCF) margins, making it a compelling investment opportunity.
Macquarie expects return on capital employed (RoCE) to expand from 12% to 24%, driven by strong demand, higher discretionary income, and cost efficiencies.
With a scalable business model, strong demand tailwinds, and a favorable industry outlook, Lemon Tree is well-positioned for significant growth in the coming years.
Disclaimer: The above article is for informational purposes only and does not constitute financial advice. Investors are advised to consult their financial advisors before making any investment decisions.