ICICI Securities: Lemon Tree Hotels Displays Resilience Amid Turbulence
BQ Blue’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BloombergQuint’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.
ICICI Securities Report
We believe Lemon Tree Hotels Ltd. is well poised to benefit from the expected recovery in the hotel business cycle from FY22E owing to its presence in the midscale and upper-midscale segments along with a higher share of domestic customers (85%).
The company’s cost-saving initiatives post-Covid-19 may drive a 500-700 basis points Ebitda margin improvement once demand normalises.
Liquidity concerns have been addressed with APG, its private equity partner, infusing Rs 1.75 billion in its subsidiary, Fleur, with an additional capital commitment of Rs 1.25 billion.
Click on the attachment to read the full report:
This report is authored by an external party. BloombergQuint does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the brokerage and do not represent the views of BloombergQuint.
Users have no license to copy, modify, or distribute the content without permission of the Original Owner.