Shares of this small-cap hospitality stock jumped around 5 percent in Friday’s trading session after the company signed a license agreement for a property in Visakhapatnam. In the past six months, the company’s stock has gained over 25 percent.
With a market capitalization of Rs 8,865.24 crores, the stocks of Lemon Tree Hotels Limited closed at Rs 111.90, gaining around 5 percent as compared to the previous closing levels of Rs 106.95 apiece.
In a recent filing with the Bombay Stock Exchange (BSE) dated 26th October 2023, intimated that it has signed a Licence Agreement for a property in Visakhapatnam, Andhra Pradesh under the Company’s brand “Red Fox Hotels”. The said property is expected to be operational by the Financial Year 2026.
This property will feature 50 well-appointed rooms, a fitness centre, a restaurant, conference room, and other public areas. ‘Carnation Hotels Private Limited’, a wholly-owned subsidiary and the hotel management arm of Lemon Tree Hotels, will be operating the hotel.
In recent financial years, the company’s operating revenues as well as net profits showed positive movements.
The operating revenues moved up from Rs 402.24 crores during FY21-22 to Rs 874.99 crores during FY22-23, and, the net profits, keeping the timeframe the same, transitioned from a loss of Rs 137.36 crores during FY21-22 to a profit of Rs 140.54 crores during FY22-23.
As per the shareholding data available for the quarter ended September 2023, the company’s Promoters hold a 23.28 percent stake, and the Foreign Institutional Investors (FIIs) hold a considerable stake of 24.82 percent in the company.
Lemon Tree Hotels Limited is a company based in India that owns as well as operates a chain of business and leisure hotels. The company operates its hotels under the brand names, viz, Lemon Tree Hotels, Lemon Tree Premier, and Redfox Hotels.
Written by Amit Madnani
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