Praveg Ltd in focus after signing an agreement with IHCL to manage its luxury resort
This small cap company with core competence in Exhibition and Event Management is in focus in the day’s trade following key partnership with Tata group backed IHCL.
Price movement
With a market capitalization of Rs. 1,197 Crores, the shares of Praveg Ltd closed at Rs. 463.60, down by 5.4 percent from its previous day’s close price of Rs. 490.
About the Agreement
Praveg Ltd has announced a strategic agreement with IHCL, which would be responsible for Praveg’s pristine property, namely Praveg Atoll’s, a breathtaking resort located at Bangaram Island in Lakshadweep, and would be categorised under the SeleQtions brand.
This will lead IHCL to operate this resort by delivering exceptional service and operational efficiency, and also, with IHCL’s strong brand presence, it plans to increase its occupancy rate, which will in turn lead to an increase in the Average Room Rate (ARR) and thus increase the Revenue of the company
Company Overview
Praveg Ltd is a prominent player in the hospitality sector. It manages 15 resorts with over 710 rooms. Some key resorts under management are Beach Resort Daman (Lighthouse, Jampore), Beach Resort Diu (Chakratirth, Ghoghla, and Nagoa), Tent City Ayodhya (Brahmakund and Saryu), Grand Eulogia, Tent City Dholavira, Praveg Safari Velavadar, and many more
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Other Financials
It has a high PE of 92.8x, significantly higher than its industry PE of 33.02x and its median PE of 24.4x, signaling overvaluation. It has an Average ROE (3 years) of 2.17% and an average ROCE (3 years) of 3.07%
Financial Overview
It posted a revenue of 54.88 crores in Q3 FY25, which is up by 62% from its previous Q3 FY24 revenue of 33.97 crores, accompanied by profits of Rs. 8 Crores to Rs.11 Crores.
Future Plans
The tourism industry is poised to grow at an impressive CAGR of 7.1% and is expected to reach $35 trillion by 2029. Praveg Ltd has plans of adding 577 rooms in its upcoming resorts plan, which includes Udaipur Resort, Ranthambore Resort, etc The company plans to achieve 2500 rooms across 65+ locations
Chairman’s message
“We are thrilled to partner with the Indian Hotels Company Limited, a leader in the hospitality industry, to manage our exceptional property on Bangaram Island. IHCL’s expertise in managing luxury resorts and its commitment to sustainability align perfectly with our vision for this island paradise. This partnership will ensure that guests experience the very best in hospitality, while preserving the natural beauty of the island for future generations. This collaboration is a testament to Praveg Limited’s reputation for quality and innovation in the hospitality sector.”
Written by Satyajeet Mukherjee
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