Lemon Tree HotelsNSE:LEMONTREE +0.29%81 ROA % is 8.54% as of Mar. 2026, which is 547% above its 10-year median of 1.32. GuruFocus rates NSE:LEMONTREE with a GF Score™ of 81/100 and a GF Value™ of ₹178.95 (Significantly Undervalued). The stock has 1 warning sign investors should review. Among 859 Travel & Leisure companies, Lemon Tree Hotels ranks better than 71.94% on this metric.
ROA % is calculated as Net Income divided by its average Total Assets over a certain period of time. Lemon Tree Hotels's annualizedNet Income for the quarter that ended in Mar. 2026 was ₹3,660 Mil.
Lemon Tree Hotels's average Total Assets over the quarter that ended in Mar. 2026 was ₹42,847 Mil. Therefore, Lemon Tree Hotels's annualized ROA % for the quarter that ended in Mar. 2026 was 8.54%.
The historical rank and industry rank for Lemon Tree Hotels's ROA % or its related term are showing as below:
NSE:LEMONTREE'
s ROA % Range Over the Past 10 Years
Min: -3.35 Med: 1.32 Max: 5.46
Current: 5.46
During the past 13 years, Lemon Tree Hotels's highest ROA % was 5.46%. The lowest was -3.35%. And the median was 1.32%.
NSE:LEMONTREE's ROA % is ranked better than 71.94% of 859
companies
in the Travel & Leisure industry
Industry Median: 2.37
vs NSE:LEMONTREE: 5.46
Lemon Tree Hotels (NSE:LEMONTREE) ROA % Explanation
ROA % measures the rate of return on the total assets (shareholder equity plus liabilities). It measures a firm's efficiency at generating profits from shareholders' equity plus its liabilities. ROA % shows how well a company uses what it has to generate earnings. ROA %s can vary drastically across industries. Therefore, ROA % should not be used to compare companies in different industries. For retailers, a ROA % of higher than 5% is expected. For example, Wal-Mart (WMT) has a ROA % of about 8% as of 2012. For banks, ROA % is close to their interest spread. A banks ROA % is typically well under 2%.
Similar to ROE, ROA % is affected by profit margins and asset turnover. This can be seen from the Du Pont Formula:
Note:
The Net Income data used here is four times the quarterly (Mar. 2026) net income data. The Revenue data used here is four times the quarterly (Mar. 2026) revenue data.
* 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.
Be Aware
Like ROE, ROA % is calculated with only 12 months data. Fluctuations in the company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective. ROA % can be affected by events such as stock buyback or issuance, and by goodwill, a company's tax rate and its interest payment. ROA % may not reflect the true earning power of the assets. A more accurate measurement is ROC % (ROC).
Many analysts argue the higher return the better. Buffett states that really high ROA % may indicate vulnerability in the durability of the competitive advantage.
E.g. Raising $43b to take on KO is impossible, but $1.7b to take on Moody's is. Although Moody's ROA % and underlying economics is far superior to Coca Cola, the durability is far weaker because of lower entry cost.
Lemon Tree Hotels ROA % Related Terms
Lemon Tree Hotels ROA % Historical Data
* Premium members only.
The historical data trend for Lemon Tree Hotels's ROA % 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.
For the Lodging subindustry, Lemon Tree Hotels's ROA %, along with its competitors' market caps and ROA % 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 ROA % vs Travel & Leisure Industry
For the Travel & Leisure industry and Consumer Cyclical sector, Lemon Tree Hotels's ROA % distribution charts can be found below:
* The bar in red indicates where Lemon Tree Hotels's ROA % 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 ROA %, the net income of the last fiscal year and the average total assets 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.
ROA % is displayed in the 30-year financial page.
Lemon Tree Hotels (NSE:LEMONTREE) has a ROA % of 8.54% as of Mar. 2026. Return on assets is the ratio of current-period net income to average two-period total assets. View historical data on Lemon Tree Hotels and its competitors. This is 547% above median its historical median of 1.32. According to the industry distribution chart, Lemon Tree Hotels ranks #241 out of 859 companies in the Travel & Leisure industry, placing it in the top 28.1%.
Is Lemon Tree Hotels' ROA % too high?
Lemon Tree Hotels' current ROA % of 8.54% is 547% above median its 10-year median of 1.32. The Travel & Leisure industry median ROA % is 2.37. Lemon Tree Hotels' value of 8.54% is 260.3% above this industry median. Based on the distribution chart, Lemon Tree Hotels ranks #241 out of 859 companies in the Travel & Leisure industry, which is above the industry midpoint. Overall, Lemon Tree Hotels has a GF Score™ of 81/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Lemon Tree Hotels' ROA % compare to MAR and HLT?
According to the Travel & Leisure industry distribution chart, Lemon Tree Hotels ranks #241 out of 859 companies for ROA %. This puts Lemon Tree Hotels in the upper half of its industry. The industry median ROA % is 2.37. Lemon Tree Hotels' value of 8.54% is 260.3% above this benchmark. While the company's 10-year median is 1.32 vs. the industry median of 2.37, 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 ROA % for a Travel & Leisure company?
The median ROA % among Travel & Leisure companies is 2.37, based on 859 companies in the industry. Companies in the top quartile (top 25%) have a ROA % significantly above this median, while those in the bottom quartile fall well below. However, ROA % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Lemon Tree Hotels's current ROA % of 8.54% is 260.3% 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 ROA % mean?
A high ROA % can signal that a stock is expensive relative to its fundamentals. Return on assets is the ratio of current-period net income to average two-period total assets. View historical data on Lemon Tree Hotels and its competitors. For the Travel & Leisure industry, the median ROA % is 2.37 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Lemon Tree Hotels's current ROA % is 8.54%, which is 547% above median its own 10-year median of 1.32. 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 ₹178.95, compared to a current price of ₹119.69 — trading 33.1% below its estimated fair value. The current ROA % is 8.54%, which is 547% above median its 10-year median of 1.32 and 260.3% above the Travel & Leisure industry median of 2.37. Lemon Tree Hotels' overall GF Score™ is 81/100 with 1 warning sign to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is ROA % calculated?
ROA % is calculated from a company's financial statements. For Lemon Tree Hotels (NSE:LEMONTREE), the current ROA % is 8.54% 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 ₹119.69 is trading 33.1% below its estimated GF Value™ of ₹178.95.
GuruFocus considers Lemon Tree Hotels to be Significantly Undervalued.
Key valuation signals for NSE:LEMONTREE:
ROA %: 8.54% (547% above median its 10-year median of 1.32)
GF Value™: ₹178.95 vs. price of ₹119.69 (33.1% below fair value)
Industry Position: 260.3% above the Travel & Leisure median (#241 of 859)
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.
81GF Score
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