Shares of this Hospitality stock under the ‘small-cap’ category jumped up to 2.30 percent in Wednesday’s trading session after the company announced the opening of new property in Kathmandu, Nepal. In the last six months, the company’s stock gained close to 20 percent for its holders.
With a market capitalization of Rs 11,067.68 crores, the stocks of Lemon Tree Hotels Limited opened their trading hour on Wednesday at Rs 139.25 and currently trade at Rs 139.70. The company’s scrip witnessed an intra-day high price of Rs 140.95 exhibiting a gain of approximately 2.30 percent compared to the previous close of Rs 137.75 apiece.
Such bullish share price movements are observed today after the company, through a recent regulatory filing with the Bombay Stock Exchange (BSE), announced the foray in Nepal, the land of Mount Everest, and opened its first-ever property in Kathmandu under the brand name “Lemon Tree Premier”.
Some of the features of the property include 102 well-appointed rooms and suites, a coffee shop, an Asian restaurant, a recreation bar & tea lounge. For recreational purposes, the hotel will also offer a fitness center, infinity pool, spa, etc.
“We are very pleased to start FY25 on a high note, with both the launch of our first hotel in Nepal – Lemon Tree Premier, Budhanilkantha, Kathmandu, and also crossing the 10,000 room mark.”, commented Mr. Patanjali Keswani, Chairman and Managing Director, Lemon Tree Hotels.
During the recent financial quarters, the company’s prime indicators of business, viz, its operating revenues as well as after-tax profits, recorded a jump in numbers with the former increasing from Rs 227 crores during Q2FY24 to Rs 289 crores during Q3FY24, and the latter, keeping the timeframe the same, rose from Rs 26 crores to Rs 44 crores.
In addition, the company’s ratio analysis portrays the return ratios, viz, the return on equity (RoE) as well as the return on capital employed (RoCE), been reported at healthy numbers during FY22-23 with the former reported at 13.41 percent and the latter at 10.54 percent.
Incorporated in the early 2000s, Lemon Tree Hotels Limited is an India-based company that owns and operates a chain of business and leisure hotels under the brand name ‘Lemon
Tree Premier’, ‘Lemon Tree Hotels’, and ‘Redfox Hotels’. The majority of its revenue is generated from the rental of rooms.
Written by Amit Madnani
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