Hello friends, Today we will talk about Lemon Tree Share Price Target 2023, 2024, 2025, 2030. We will try to predict in this article what the share price target of Lemon Tree Industries may be in the future. If you want to invest your money in Lemon Tree Company, then read our article till the end.
Lemon Tree Hotels Ltd Business Overview
Lemon Tree Company is a leading hotel chain in the mid-price segment. The company has 87 hotels in 52 locations. The total number of rooms is Rs 8500 crore. The company management is working on a plan to open 20 new hotels in the year 2023.
The company has acquired Berggruem Hotels Pvt Ltd Company to promote its business. It is the fourth largest company in the mid-market hotel chain. After the acquisition of this company, the company has become India’s third largest company in the mid-price hotel segment.
The company is also emphasizing establishing its business abroad. At present, the company has four hotels abroad.
If we take a look at the financial condition of the company, due to the coronavirus, the company’s sales decreased and due to the maintenance of the closed hotel, the company’s net profit also went down to minus 187 crores.
But now again the company’s sales are seeing a good boom and the company’s net profit has become balanced in the margin. But due to the debt of Rs 2100 crore on the company, the company has to pay a lot of money as interest.
So let us now try to predict what the lemon tree share price target can be seen in the future by 2023, 2024, 2025, 2030 based on the growth of the company’s business model and the financial condition of the company.
Lemon Tree Share Price Target 2023
After the relaxation of coronavirus rules, the company’s sales will see good growth. Vikas Sethi of Sethi Finmart believes that the company’s stock may see a good jump in the short term due to the expectation of a good wedding and holiday season.
According to Motilal Oswal brokerage firm, the price target of the company’s stock can reach Rs 110 in 2023.
Lemon Tree Share Price Target 2025
The total asset of the company is Rs 3640 crore and the company has a debt of Rs 2100 crore, which is very high. The company’s stock is already trading at a P/E ratio of 1600, indicating that the stock is trading at a very expensive valuation.
If we talk about Lemon Tree Share Price Target 2025, then the company management is constantly making good efforts to increase its business. The company management is going to add 20 new hotels to its hotel this year. Due to this the company’s sales can see good growth.
The profit of the company is 30%-40%, if the company’s sales increase, then the company’s net profit margin will also see a good increase. Lemon Tree Share Price Target can be seen from Rs 150 to Rs 175 in 2025.
Lemon Tree Share Price Target 2030
If we talk about the long-term price target of the company’s stock, then the company appears to be a slightly weak company fundamentally and financially. The promoter holding in the company is 24%, which cannot be considered very good and the company has a huge debt of Rs 2100 crore.
Keeping all these things in mind, we believe that we should stay away from this stock for long-term investment. If the company management is able to reduce its debt, then you can think of a long-term investment in the company’s stock. Anyway, the stock of the company is trading at a very expensive valuation at this time.