Comments
The stock of Lemon Tree Hotels rallied around 8.5 per cent last Friday on news that the company had tied up with private equity firm Warburg Pincus to develop co-living and rental housing projects.
The partners plan to invest ₹3,000 crore in the business, half of it now. Lemon Tree’s share in the venture is 30 per cent. This new business is under-explored in India and could be a good growth driver in the years ahead.
With last week’s rally, the Lemon Tree stock has gained about 33 per cent since its IPO in April, placing it among the best performers in a weak market.
This good show has been driven by strong operational and financial performance, making good use of the upcycle in the hotel industry and the company’s strong position in the lucrative mid-market space. The stock trades at about 53 times EV/EBITDA now, lower than the 80 times in August.
ALSO READ : Lemon Tree Hotels - In a comfortable space: Buy
Comments
COMMENT NOW
Comments
Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.
We have migrated to a new commenting platform. If you are already a registered user of TheHindu Businessline and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.