Lemon Tree HotelsNSE:LEMONTREE +0.29%81 ROE % is 26.29% as of Mar. 2026, which is 556% above its 10-year median of 4.01. 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 825 Travel & Leisure companies, Lemon Tree Hotels ranks better than 79.88% on this metric.
The historical rank and industry rank for Lemon Tree Hotels's ROE % or its related term are showing as below:
NSE:LEMONTREE'
s ROE % Range Over the Past 10 Years
Min: -13.33 Med: 4.01 Max: 18.45
Current: 17.97
During the past 13 years, Lemon Tree Hotels's highest ROE % was 18.45%. The lowest was -13.33%. And the median was 4.01%.
NSE:LEMONTREE's ROE % is ranked better than 79.88% of 825
companies
in the Travel & Leisure industry
Industry Median: 5.46
vs NSE:LEMONTREE: 17.97
Lemon Tree Hotels (NSE:LEMONTREE) ROE % Explanation
ROE % measures the rate of return on the ownership interest (shareholder's equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' equity (also known as net assets or assets minus liabilities). ROE % shows how well a company uses investment funds to generate earnings growth. ROE %s between 15% and 20% are considered desirable.
The factors that affect a company's ROE % can be illustrated with the three-step DuPont Analysis:
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. The same rule applies to Pre-Tax Income and Operating Income.
* In the five-step DuPont Analysis, Operating Income is only available for non-financial companies. Thus, for Insurance companies, we use EBIT as a substitution of Operating Income. For Banks, both Operating Income and EBIT is unavailable. Thus we combined Interest Burden and Operating Margin % into Pretax Margin %, and the DuPont Analysis is divided into four components instead.
* 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
Net Income is used.
Because a company can increase its ROE % by having more financial leverage, it is important to watch the equity multiplier when investing in high ROE % companies. Like ROA %, ROE % 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 ROE %s can be extremely high.
Lemon Tree Hotels ROE % Related Terms
Lemon Tree Hotels ROE % Historical Data
* Premium members only.
The historical data trend for Lemon Tree Hotels's ROE % 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 ROE %, along with its competitors' market caps and ROE % 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 ROE % vs Travel & Leisure Industry
For the Travel & Leisure industry and Consumer Cyclical sector, Lemon Tree Hotels's ROE % distribution charts can be found below:
* The bar in red indicates where Lemon Tree Hotels's ROE % 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 ROE %, the net income of the last fiscal year and the average total shareholder 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.
ROE % is displayed in the 30-year financial page.
Lemon Tree Hotels (NSE:LEMONTREE) has a ROE % of 26.29% as of Mar. 2026. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on Lemon Tree Hotels and its competitors. This is 556% above median its historical median of 4.01. According to the industry distribution chart, Lemon Tree Hotels ranks #166 out of 825 companies in the Travel & Leisure industry, placing it in the top 20.1%.
Is Lemon Tree Hotels' ROE % too high?
Lemon Tree Hotels' current ROE % of 26.29% is 556% above median its 10-year median of 4.01. The Travel & Leisure industry median ROE % is 5.46. Lemon Tree Hotels' value of 26.29% is 381.5% above this industry median. Based on the distribution chart, Lemon Tree Hotels ranks #166 out of 825 companies in the Travel & Leisure industry, which is in the top quartile — a strong position relative to peers. 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' ROE % compare to MAR and HLT?
According to the Travel & Leisure industry distribution chart, Lemon Tree Hotels ranks #166 out of 825 companies for ROE %. This places Lemon Tree Hotels in the top 20% of its industry — outperforming the majority of peers. The industry median ROE % is 5.46. Lemon Tree Hotels' value of 26.29% is 381.5% above this benchmark. While the company's 10-year median is 4.01 vs. the industry median of 5.46, 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 ROE % for a Travel & Leisure company?
The median ROE % among Travel & Leisure companies is 5.46, based on 825 companies in the industry. Companies in the top quartile (top 25%) have a ROE % significantly above this median, while those in the bottom quartile fall well below. However, ROE % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Lemon Tree Hotels's current ROE % of 26.29% is 381.5% 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 ROE % mean?
A high ROE % can signal that a stock is expensive relative to its fundamentals. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on Lemon Tree Hotels and its competitors. For the Travel & Leisure industry, the median ROE % is 5.46 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Lemon Tree Hotels's current ROE % is 26.29%, which is 556% above median its own 10-year median of 4.01. 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 ROE % is 26.29%, which is 556% above median its 10-year median of 4.01 and 381.5% above the Travel & Leisure industry median of 5.46. 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 ROE % calculated?
ROE % is calculated from a company's financial statements. For Lemon Tree Hotels (NSE:LEMONTREE), the current ROE % is 26.29% 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:
ROE %: 26.29% (556% above median its 10-year median of 4.01)
GF Value™: ₹178.95 vs. price of ₹119.69 (33.1% below fair value)
Industry Position: 381.5% above the Travel & Leisure median (#166 of 825)
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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