. LEMON TREE HOTELS: Buoyant demand drives ARR growth (LEMONTRE IN, Mkt Cap USD0.7b, CMP INR69, TP INR90, 31% Upside, Buy) Operating performance better than our expectation LEMONTRE posted robust revenue growth (up 4.2x YoY) in 1QFY23, led by strong demand on account of increased corporate travel and greater demand for MICE (Meetings, Incentives, Conferences, and Exhibitions). This led to ARR surpassing pre-COVID levels by 20%. We raise our FY23/FY24 EBITDA estimate by 4%/5% and maintain ...
LEMON TREE HOTELS: Retail demand drives recovery (LEMONTRE IN, Mkt Cap USD0.5b, CMP INR50, TP INR70, 41% Upside, Buy) Revenue grew 2x YoY in 2QFY22, led by robust RevPAR growth of 80% on account of a 19pp improvement in occupancy. The latter was driven by a sharp recovery in retail demand and 14% rise in ARR. EBITDA surged 4.1x YoY benefitting from operating leverage. Factoring in better demand visibility, we increase our FY22E EBITDA estimate by 16% (on low base), but have maintained ou...
Full Article at IIR has reaffirmed its Recommended rating for PIA after undertaking a review post the appointment of a new Portfolio Manager, Harding Loevner. The full report can be found on the IIR website. On 26 July 2021, Pengana International Equities Limited (PIA) announced a fully franked dividend of 1.35 cents per share for the June quarter. This represents an 8% increase on the March quarter dividend and takes the total dividends declared for FY21 of 5.1 cents per share, fully franked....
LEMON TREE HOTELS: New hotels, non-recurring costs dent EBITDA (LEMONTRE IN, Mkt Cap USD0.6b, CMP INR58, TP INR72, 25% Upside, Buy) Miss on EBITDA: Revenue increased 18% YoY to INR1,528m (our estimate: INR1,622m) in 2QFY20. However, like-to-like EBITDA (adjusted for Ind-AS 116) was up only 12% YoY at INR404m, with the margin down 150bp YoY to 26.5%. PBT loss stood at INR27m versus INR89m in the year-ago period. The company reported a loss of INR22m in 2QFY20, as against a profit of INR57m...
LEMON TREE: Strategy in place, but execution remains key (LEMONTRE IN, Mkt Cap USD0.6b, CMP INR53, TP INR75, 41% Upside, Buy) LEMONTRE hosted an analyst meet at its recently launched hotel – Lemon Tree Premier in Mumbai. The company shed light on its execution strategy and addressed investor concerns regarding debt. Key insights highlighted below:- Besides synergies, Keys’ acquisition to help add rooms via management contract While LEMONTRE's acquisition of 'Keys Hotel' brings with ...
LEMON TREE HOTELS: ARR growth and new hotels drive revenues; New hotels dent EBITDA performance (LEMONTRE IN, Mkt Cap USD0.6b, CMP INR57, TP INR75, 32% Upside, Buy) In-line revenue and EBITDA (on like-to-like basis): 1QFY20 revenue stood at INR1,409m (v/s est. INR1,428m), up 11% YoY. However, like-to-like EBITDA (adj. for Ind-AS 116 impact) stood at INR372m (v/s est. INR393m), up 7% YoY. Like-to-like EBITDA margins contracted 100bp to 26.4%. Loss during the quarter stood at INR17m (v/s es...
Lemon Tree Hotels: Synergies from Keys’ acquisition to offer a great deal; Further strengthening its presence in the mid-market segment (LEMONTRE IN, Mkt Cap USD0.8b, CMP INR66, TP INR90, 36% Upside, Buy) Lemon Tree (LEMONTRE) hosted a conference call to discuss its acquisition of Keys Hotels. Main insights highlighted below: Concludes acquisition of Keys Hotels for cash consideration of INR4,710m The LEMONTRE board has approved the acquisition of Keys Hotels, owned by Berggruen Hot...
Lemon Tree Hotels: ARR growth and new hotels drive revenue; Growth to accrue post stabilization of hotels (LEMONTRE IN, Mkt Cap USD0.8b, CMP INR74, TP INR91, 23% Upside, Buy) In-line revenues; miss on EBITDA: 4QFY19 revenue grew 14% YoY to INR1,505m (our est. INR1,571m), with EBITDA margin expansion of 360bp to 32.5% (our est. 35.2%). EBITDA stood at INR489m, up 28% YoY; Adj. PAT stood at INR325m (our est. INR151m), up 2.9x YoY. In FY19, revenue/EBITDA/adj. PAT grew 13%/24%/273% YoY to IN...
Lemon Tree Hotels (initiating coverage): The Eagle Eyed; Squeezing opportunities in demand-dense, high ARR markets (LEMONTRE IN, Mkt Cap USD0.8b, CMP INR74, TP INR90, 21% Upside, Buy) Lemon Tree Hotels (LEMONTRE) is the largest hotel chain operator in the mid-priced hotel segment in India. It manages 5,342 rooms across India through its three brands: (i) Lemon Tree Premier (LTP) – catering to the upper-midscale segment, (ii) Lemon Tree Hotels (LTH) – for the midscale segment, and (iii) the ...
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