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Lemon Tree HotelsNSE:LEMONTREE -0.97%82 Return-on-Tangible-Equity is 29.17% as of Mar. 2026, which is 618% above its 10-year median of 4.06. GuruFocus rates NSE:LEMONTREE with a GF Score™ of 82/100 and a GF Value™ of ₹180.32 (Significantly Undervalued). The stock has 1 warning sign investors should review. Among 793 Travel & Leisure companies, Lemon Tree Hotels ranks better than 73.27% on this metric.
Return-on-Tangible-Equity is calculated as Net Income divided by its average total shareholder tangible equity. Total shareholder tangible equity equals to Total Stockholders Equity minus Intangible Assets. Lemon Tree Hotels's annualized net income for the quarter that ended in Mar. 2026 was ₹3,660 Mil. Lemon Tree Hotels's average shareholder tangible equity for the quarter that ended in Mar. 2026 was ₹12,548 Mil. Therefore, Lemon Tree Hotels's annualized Return-on-Tangible-Equity for the quarter that ended in Mar. 2026 was 29.17%.
The historical rank and industry rank for Lemon Tree Hotels's Return-on-Tangible-Equity or its related term are showing as below:
NSE:LEMONTREE'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: -15.2 Med: 4.06 Max: 21.19
Current: 20.19
During the past 13 years, Lemon Tree Hotels's highest Return-on-Tangible-Equity was 21.19%. The lowest was -15.20%. And the median was 4.06%.
NSE:LEMONTREE's Return-on-Tangible-Equity is ranked better than 73.27% of 793
companies
in the Travel & Leisure industry
Industry Median: 7.69
vs NSE:LEMONTREE: 20.19
Lemon Tree Hotels (NSE:LEMONTREE) Return-on-Tangible-Equity Explanation
Return-on-Tangible-Equity measures the rate of return on the ownership interest (shareholder's tangible equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' tangible equity (shareholders equity minus intangibles). Return-on-Tangible-Equity shows how well a company uses investment funds to generate earnings growth. Return-on-Tangible-Equitys between 15% and 20% are considered desirable.
Be Aware
Net Income is used.
Because a company can increase its Return-on-Tangible-Equity by having more financial leverage, it is important to watch the leverage ratio when investing in high Return-on-Tangible-Equity companies. Like Return-on-Tangible-Asset, Return-on-Tangible-Equity is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.
Asset light businesses require very few assets to generate very high earnings. Their Return-on-Tangible-Equitys can be extremely high.
Lemon Tree Hotels Return-on-Tangible-Equity Related Terms
Lemon Tree Hotels Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for Lemon Tree Hotels's Return-on-Tangible-Equity can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
NSE:LEMONTREE vs MAR, HLT, H: Return-on-Tangible-Equity Comparison
For the Lodging subindustry, Lemon Tree Hotels's Return-on-Tangible-Equity, along with its competitors' market caps and Return-on-Tangible-Equity data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Lemon Tree Hotels Return-on-Tangible-Equity vs Travel & Leisure Industry
For the Travel & Leisure industry and Consumer Cyclical sector, Lemon Tree Hotels's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Lemon Tree Hotels's Return-on-Tangible-Equity falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
In the calculation of annual Return-on-Tangible-Equity, the net income of the last fiscal year and the average total shareholder tangible equity over the fiscal year are used. In calculating the quarterly data,
the net income data used here is four times the quarterly (Mar. 2026) net income data.
Return-on-Tangible-Equity is displayed in the 10-year financial page.
What does a Return-on-Tangible-Equity of 29.17% mean?
Lemon Tree Hotels (NSE:LEMONTREE) has a Return-on-Tangible-Equity of 29.17% as of Mar. 2026. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Lemon Tree Hotels and its competitors. This is 618% above median its historical median of 4.06. According to the industry distribution chart, Lemon Tree Hotels ranks #212 out of 793 companies in the Travel & Leisure industry, placing it in the top 26.7%.
Is Lemon Tree Hotels' Return-on-Tangible-Equity too high?
Lemon Tree Hotels' current Return-on-Tangible-Equity of 29.17% is 618% above median its 10-year median of 4.06. The Travel & Leisure industry median Return-on-Tangible-Equity is 7.69. Lemon Tree Hotels' value of 29.17% is 279.3% above this industry median. Based on the distribution chart, Lemon Tree Hotels ranks #212 out of 793 companies in the Travel & Leisure industry, which is above the industry midpoint. Overall, Lemon Tree Hotels has a GF Score™ of 82/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Lemon Tree Hotels' Return-on-Tangible-Equity compare to MAR and HLT?
According to the Travel & Leisure industry distribution chart, Lemon Tree Hotels ranks #212 out of 793 companies for Return-on-Tangible-Equity. This puts Lemon Tree Hotels in the upper half of its industry. The industry median Return-on-Tangible-Equity is 7.69. Lemon Tree Hotels' value of 29.17% is 279.3% above this benchmark. While the company's 10-year median is 4.06 vs. the industry median of 7.69, Lemon Tree Hotels has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Return-on-Tangible-Equity for a Travel & Leisure company?
The median Return-on-Tangible-Equity among Travel & Leisure companies is 7.69, based on 793 companies in the industry. Companies in the top quartile (top 25%) have a Return-on-Tangible-Equity significantly above this median, while those in the bottom quartile fall well below. However, Return-on-Tangible-Equity should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Lemon Tree Hotels's current Return-on-Tangible-Equity of 29.17% is 279.3% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Return-on-Tangible-Equity mean?
A high Return-on-Tangible-Equity can signal that a stock is expensive relative to its fundamentals. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Lemon Tree Hotels and its competitors. For the Travel & Leisure industry, the median Return-on-Tangible-Equity is 7.69 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Lemon Tree Hotels's current Return-on-Tangible-Equity is 29.17%, which is 618% above median its own 10-year median of 4.06. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Lemon Tree Hotels stock overvalued right now?
Based on GuruFocus' analysis, Lemon Tree Hotels (NSE:LEMONTREE) is currently considered Significantly Undervalued. The stock's GF Value™ is ₹180.32, compared to a current price of ₹113.75 — trading 36.9% below its estimated fair value. The current Return-on-Tangible-Equity is 29.17%, which is 618% above median its 10-year median of 4.06 and 279.3% above the Travel & Leisure industry median of 7.69. Lemon Tree Hotels' overall GF Score™ is 82/100 with 1 warning sign to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Return-on-Tangible-Equity calculated?
Return-on-Tangible-Equity is calculated from a company's financial statements. For Lemon Tree Hotels (NSE:LEMONTREE), the current Return-on-Tangible-Equity is 29.17% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Lemon Tree Hotels (NSE:LEMONTREE) Overvalued in 2026?
Based on GuruFocus' analysis, Lemon Tree Hotels stock appears to be undervalued.
The current stock price of ₹113.75 is trading 36.9% below its estimated GF Value™ of ₹180.32.
GuruFocus considers Lemon Tree Hotels to be Significantly Undervalued.
Key valuation signals for NSE:LEMONTREE:
Return-on-Tangible-Equity: 29.17% (618% above median its 10-year median of 4.06)
GF Value™: ₹180.32 vs. price of ₹113.75 (36.9% below fair value)
Industry Position: 279.3% above the Travel & Leisure median (#212 of 793)
No single metric tells the full story. See the NSE:LEMONTREE stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Lemon Tree Hotels Ltd operates hotels across the upscale, upper-midscale, midscale, and economy segments under seven brands catering to varied guest needs. These include Aurika Hotels and Resorts (upscale), Lemon Tree Premier and Keys Prima (upper-midscale), Lemon Tree Hotels and Keys Select (midscale), and Red Fox and Keys Lite (economy). The company generates revenue by owning, leasing, and managing hotels, earning through room rentals and management commissions. Its operations span metro regions and tier cities across India, with international presence in countries like the United Arab Emirates, Bhutan, and Nepal, focusing on delivering differentiated service and value offerings to a broad customer base.
82GF Score
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