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This Hospitality Share with 15000% Return: Can It Reach ₹1130?


Praveg shares: The share of Praveg Ltd has been sliding downwards since the beginning of 2024. The company’s stock has fallen 30 percent from its high of Rs 1,300 per share. 

On January 10 this year, the stock touched a 52-week high. On Wednesday the stock rose around 2 % and trades at 909 rupees.

In early trade today, the stock had climbed by 3% and reached an intraday high of Rs 927.95. 

Let us inform you that it’s one of the top companies in hospitality, tourism events, event management, and exhibitions. The company has more than 30 years of experience working in these industries.

The Opinion Of A Brokerage Firm

Recent estimates by an international broker suggest the price could be headed for a change in direction within the next few days.

The company is growing into a major player in the hotel industry with its cost-effective strategy, positioned to perform better than its peers in the hospitality industry.

At first, it was known for marquee festivals like the White Rann Festival and Vibrant Gujarat, Praveg Ltd entered the hospitality industry in the year 2015.

The company’s primary focus has been on immersive staying-cation experiences that are rich in culture and environmentally unique destinations.

Company’s Unique Business

A brokerage firm said Praveg Ltd’s portfolio of resorts includes places like Tent City Narmada at Ayodhya, Daman and Diu, Statue of Unity, and White Rann Utsav in Kutch.

The brokerage added that Praveg Ltd’s portfolio of businesses is likely to grow further, given that Praveg is pursuing ambitious goals to increase its operations in new areas.

In announcing the construction of these luxurious tents, the brokerage said the process is quite economical. It also pointed out that cost is minimal for properties run seasonally by Praveg because they are only one-time costs.

Contrary to traditional hotels that need extensive construction work, constructing tents takes less time and is cost-effective. The brokerage also noted that luxury tents only require 1.5-2 million rupees to establish as opposed to an investment of around 10 million rupees per hotel room in luxury hotels.

In addition, semi-temporary houses require 3 million rupees. Praveg can put up an entire city of tents in less than two months.

What Is The Goal Price?

The brokerage firm has set an initial price target of 1,130 rupees for the stock. The brokerage has assigned a “buy” rating for the stock.

The share of the company has yielded an average return of 15,000  percent over five years.  During this period, its price has increased from Rs 5.98 to the current price of Rs 909.

Praveg Ltd Stock Performance

Market Cap ₹ 2,332 Cr.
Current Price ₹ 903
52-wk High ₹ 1,300 
52-wk Low ₹ 475
5 days Return 5.42%
1 Month Return 13.25%

Company’s Fundamentals

Stock P/E 187
Book Value ₹ 117
Dividend 0.48 %
ROCE 9.37 %
ROE 6.57 %
Face Value ₹ 10.0
P/B Value 7.69
OPM 30.1 %
EPS ₹ 5.39
Debt  ₹ 62.1 Cr.
Debt to Equity 0.22

Praveg Ltd Shareholdings

Promoters 45.97%
FII’s 9.02%
DII’s 4.88%
Public 40.13%

Last 5 Years’ Sales (Figures in Rs. Crores)

Year Sales
2020 60
2021 45
2022 45
2023 84
2024 103

Last 5 Years’ Net Profit (Figures in Rs. Crores)

Year Net Profit
2020 4
2021 11
2022 12
2023 28
2024 12

Disclaimer: The website and its content are for informational purposes only and should not be considered investment advice.

careermotto

A self-motivated and hard-working individual, I am currently engaged in the field of digital marketing to pursue my passion of writing and strategising. I have been awarded an MSc in Marketing and Strategy with Distinction by the University of Warwick with a special focus in Mobile Marketing. On the other hand, I have earned my undergraduate degrees in Liberal Education and Business Administration from FLAME University with a specialisation in Marketing and Psychology.

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