The company’s shares are trading at Rs 540.35 per share on October 13th, marginally down from the previous close price of Rs 546.80, with a market capitalization of Rs 1,194 crores.
According to Bombay Stock Exchange data, the stock has delivered multibagger returns of about 8,933.34 percent over a 6-year period, spanning from Rs 4 in October 2018 to current stock price levels. It indicates that if an investor had invested Rs 1 lakh in the stock fourteen years ago, it would have gained to about Rs 1.355 crore.
Praveg is a leader in eco-friendly luxury hospitality. The resorts owned by the company are situated in beautiful, exotic locations with a rich cultural heritage. The company’s opulent tents enable access to places where conventional construction is impractical, promoting tourism while preserving the area’s delicate ecosystems.
The resorts enjoy very high occupancy, strong pre-sales at luxury hotel rates, and a high return on capital due to the non-permanent structure of the resort. This is due to the premium quality of the company’s tents and the high-end experience. Due to its history in event management and proficiency in building sizable, temporary structures of the highest caliber in a short amount of time, Praveg is also a powerful player in the events industry. Hotels for weddings and banquets have recently been added to the Events division.
Over the years, the company has maintained outstanding financial metrics, with a return on equity of 40 percent and a return on capital employed of 25 percent. While the net profit margin is 33.63 percent and the operating margin is 53.62 percent.
The company reported a 33 percent rise in net profit for FY23, to Rs 28 crore, compared to Rs 12 crore in last year (FY22). Furthermore, revenue jumped by 87 percent to Rs 84 crore from Rs 45 crore in the previous year.
The stock has gained 102% YTD and 151% in the last 1 year period. As per the latest shareholding pattern, The promoters hold a 57.56 percent stake in the company, foreign institutional investors hold 3.86 percent and the remaining stake being held by the public.
Written by Sandeep R
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