Shares of this small-cap stock associated with the ‘hospitality’ industry jumped up to 2 percent in Friday’s trading session after the company signed a Franchise Agreement for a hotel in Mussoorie, Uttarakhand. The company’s stock is inching near to its 52-week high price.
With a market capitalization of Rs 9,495.07 crores, the stocks of Lemon Tree Hotels Limited opened their trading hour on Friday at Rs 120.80 and closed at Rs 119.85. The scrip witnessed an intra-day high of Rs 122 exhibiting a gain of around 2 percent compared to the previous close of Rs 119.50 apiece.
In a recent regulatory filing with the Bombay Stock Exchange (BSE), the company intimated that it has successfully signed a Franchise Agreement for a hotel in Mussoorie, Uttarakhand under the Company’s brand- ‘Lemon Tree Hotel’.
Operational in FY25, the hotel will feature 60 well-appointed rooms, restaurants, meeting rooms, fitness center, heated swimming pool, recreation room, spa, and other public areas.
During the recent financial quarters, the operating revenues and net profits show opposing movements with the former, on one end, increasing marginally from Rs 222.26 crores during Q1FY23-24 to Rs 227.2 crores during Q2FY23-24, and, the latter, on the other end, moved down from Rs 27.22 crores to Rs 26.19 crores.
After facing a dip in FY21-22, the company reported favorable profitability ratios in FY22-23 with the return on equity (RoE) reported at 16.68 percent and the return on capital employed (RoCE) reported at 14.06 percent.
Lemon Tree Hotels Limited owns and operates a chain of business and leisure hotels in India. It operates its hotels under the brand names ‘Lemon Tree Premier’, ‘Redfox Hotels’, etc. The company generates the majority of its revenue by renting rooms.
Written by Amit Madnani
Disclaimer
The views and investment tips expressed by investment experts/broking houses/rating agencies on tradebrains.in are their own, and not that of the website or its management. Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution while investing or trading in stocks. Dailyraven Technologies or the author are not liable for any losses caused as a result of the decision based on this article. Please consult your investment advisor before investing.
