We are now compelled to downgrade LTHL to Neutral with a TP of Rs 68 (30x EV/e on Dec-20E on proportionate ownership). Lemon Trees (LTHL) 3QFY19 performance was in-line but weak. Revenue/EBITDA grew by 8.3/14.5% YoY to Rs 1.43/0.49bn. PAT of Rs 125mn was up by 34% YoY owing to higher other income. Modest 4.8% ARR growth and flat RevPAR YoY were key negatives.