On Friday, Lemon Tree Accommodations (LEMONTRE:IN) acquired an improve in its inventory ranking by Elara Securities India from Accumulate to Purchase, whereas sustaining a price goal of INR160.00.

The improve comes regardless of the corporate’s ongoing renovations of the Keys portfolio, that are anticipated to restrict the full-scale advantages from improved occupancy and better Common Room Charges (ARR). These advantages are anticipated to be extra precisely mirrored within the second half of the monetary 12 months 2026.

The analyst from Elara Securities India famous that the potential itemizing of Lemon Tree’s subsidiary, Fleur Accommodations, is more likely to coincide with the interval when the complete advantages of the corporate’s efforts might be realized. This strategic transfer is projected to contribute to a big rerating of the corporate’s inventory through the latter half of FY26.

Whereas the renovation of the Keys portfolio could end in larger bills within the brief time period, the analyst believes that the steep correction in Lemon Tree’s inventory price right this moment justifies the improve to a Purchase ranking. The agency’s price goal relies on 19 instances the FY26 estimated enterprise worth to EBITDA (EV/EBITDA) ratio.

Elara Securities India maintains its earnings estimates for Lemon Tree Accommodations for FY25 and FY26. The agency’s evaluation signifies that the corporate’s development prospects and strategic initiatives are anticipated to offer a powerful basis for a rerating sooner or later, regardless of the fast prices related to the continued renovations.

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