Clsa Terms India's Lemon Tree "a Mid: market giant" with strong growth prospects; stock rises

Lemon Tree Hotels

02/09/2026 10:34

** Hotel chain operator Lemon Tree LEMO.NS is a mid-market giant on the path to double its operating capacity, with further significant growth runway, says CLSA
** Reiterates "outperform" rating; says LEMO well poised to capture unbranded hotel opportunity of 2.3 million rooms in India with its multi-brand presence
** Says restructuring efforts and aggressive capacity additions should drive revenue growth of 12% CAGR over FY2026-29
** Trims PT marginally to 163 rupees ($1.72) from 175 rupees to account for lower ARR and higher renovation expenses
** New PT still implies a 53% upside potential over 12 months
** LEMO shares up 0.4%, amid a broad-based market drop on higher crude prices
** Including session's moves, LEMO down 33% so far in 2026, according to exchange data
      
($1 = 94.9700 Indian rupees)

(Reporting by Bharath Rajeswaran in Bengaluru)
((bharath.rajeswaran@thomsonreuters.com; +91 9769003463;))