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 |
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