Disclaimer: This information is for educational purposes only and does not constitute any financial advice.

Lemon Tree Hotels (NSE: LEMONTREE) surged close to its 52‑week high of ₹162 after trading in the ₹138–145 range in early July. The sharp uptick comes after a Q1 FY 25 earnings release, in which net revenue rose ~22% to ₹356 crore and EBITDA jumped nearly 30% to ₹185 crore . The stock, currently valued at a P/E of ~58, carries premium multiples above the sector average (~56) .

Strong operational performance was offset by concerns over the company’s high debt-to-equity ratio (~2.2x) and elevated valuation (P/B ~11x) . Return metrics remain healthy with ROCE at ~12.7% and ROE near 18.4%, pointing to solid capital efficiency .

Despite being classified as a high-growth, mid-cap with low financial strength, analysts note that upbeat travel sentiment and strong room inventory expansion (112 hotels, ~10,300 rooms across 50+ locations) support its narrative . However, margin sensitivity to debt servicing and macro headwinds remains a key risk.

Overall, Lemon Tree stands out as a premium play on India’s hospitality revival - but investors should weigh its high leverage and elevated pricing.