LEMONTREE - Swing Trade Analysis with AI Signals

Last Updated Time : 05 Nov 25, 7:43 am

Swing Trade Rating: 3.7

📉 Lemon Tree Hotels shows stable technicals and improving fundamentals, but valuation and volume concerns suggest a cautious swing setup.

🎯 Optimal Entry Price: ₹165–₹168

🚪 Exit Target (if already holding): ₹175–₹180

🔍 Positive

• 📈 Price above both 50 DMA and 200 DMA (₹165 and ₹151), indicating short-term support and trend strength.
• 📈 MACD at 0.04 signals early bullish crossover.
• 📈 ROCE of 11.2% and ROE of 8.33% reflect improving operational efficiency.
• 📈 FII holding increased by 0.12%, showing foreign investor interest.
• 📈 Debt-to-equity ratio of 0.32 indicates a manageable capital structure.

⚠️ Limitation

• 📉 P/E of 127 is nearly 4x the industry average (33.8), suggesting extreme overvaluation.
• 📉 Volume below weekly average (11.0L vs 18.8L), indicating reduced momentum.
• 📉 Dividend yield of 0.00% offers no income cushion for investors.
• 📉 EPS of ₹1.32 is low relative to valuation.

📉 Company Negative News

• 📉 PAT declined from ₹36.0 Cr to ₹20.5 Cr QoQ, showing margin pressure.
• 📉 DII holding declined by 0.27%, reflecting cautious domestic sentiment.

📈 Company Positive News

• 📈 PAT grew 22.8% YoY, indicating long-term earnings recovery.
• 📈 RSI at 53.0 suggests neutral strength, with room for upside.

🏨 Industry

• 🏨 Hospitality sector benefits from rising domestic travel, business tourism, and post-pandemic recovery.
• 📉 Risks include seasonal demand, cost inflation, and competitive pricing pressure.

✅ Conclusion

• 📉 Lemon Tree Hotels is a cautious swing trade candidate with improving fundamentals but valuation and volume concerns.
• 🎯 Entry near ₹165–₹168 with exit around ₹175–₹180 is recommended for short-term traders.
• 📊 Long-term investors should monitor occupancy rates and margin trends for sustained upside.

I can also compare Lemon Tree with Indian Hotels or Chalet Hotels to help you identify stronger swing setups in the hospitality space.