Lemon Tree Hotels IPO: Avoid the issue

Hem Securities | March 27, 2018, 5:39 p.m.

Valuation

Co is bringing the issue at p/b multiple of 3.58 on 9MFY18 book value of Rs 15.66/share. Although co is leading mid-priced hotel chain with a differentiated business model & has strategically positioned in key geographical areas but, as company was loss making since FY’15 & has turned around only in 9MFY18, hence limited track record of profit making doesn’t instill confidence in company at present level. Hence, we recommend “Avoid” on issue.



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