Lemon Tree Hotels Stock in Spotlight After Bullish Breakout

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With strong technical momentum, improving fundamentals, and an ambitious expansion pipeline, Lemon Tree Hotels surges 38% in 6 months amid a domestic hospitality boom.

By S JHA

MUMBAI, September 9, 2025 — Lemon Tree Hotels Ltd. shares surged to a five-year high, rallying 38% in the past six months, after technical analysts flagged a bullish flag breakout supported by strong delivery volumes and improving fundamentals.

StockEdge in a detailed note shared on its Telegram channel highlighted a 97/100 one-month momentum score, with robust delivery data (47.9% in May, 53.5% in June, 40.9% in July), suggesting long-term investor confidence rather than short-term speculation.

On the fundamentals side, Lemon Tree reported a Q1FY26 PAT of ₹48.5 crore, up from ₹27.2 crore last year, with a 22.83% ROE and market capitalization of ₹14,094 crore. The company’s ambitious LT 2.0 plan targets massive expansion, with 110 new hotels (7,770 rooms) in the pipeline, alongside ongoing renovations expected to lift occupancy and revenue per available room (RevPAR) over the next 15–18 months.

Brokerages remain bullish. IDBI Capital sees rising average daily rates (ADRs) aided by the festive and wedding season, corporate travel, and MICE demand. Analysts also expect operating costs to fall as technology and energy upgrades reduce expenses, further boosting margins.

Currently managing 116 hotels with 10,661 rooms across 75 locations, Lemon Tree operates brands including Aurika, Lemon Tree, and Red Fox, cementing its position as India’s largest mid-priced hotel chain.

As hospitality demand continues to outstrip supply, Lemon Tree Hotels is well placed to ride India’s structural uptrend in travel and tourism.

Shares of Lemon Tree Hotels closed at ₹177 on Tuesday, with marginal cut. The stock has a face value of ₹10. The hospitality company is currently valued at ₹13995 crores on basis of Tuesday closing of the stock.

The return on capital employed (ROCE) and return on equity (RoE) of Lemon Tree Hotels stand at 12.7% and 18.4% respectively. The stock is approaching 52-week high of ₹181. The stock has given a volume breakout on one-year technical chart per analysts.

Promoters hold just about 22% shares in the company. The foreign institutional investors (FIIs) and their domestic counterparts control roughly 40% shares in the company.

(Disclaimer: This article makes n o recommendation for buy or sell of shares of any company)