A small cap company received a work order from Maharashtra Tourism Development Corporation (MTDC) to set up and operate Tent city at Kihim in Raigad district of Maharashtra.
With the market capitalization of 1,294.3 crore, the shares of Praveg were trading marginally lower at Rs 566 levels in the final trading hours of Wednesdays session.
According to the filings in BSE, dated on 16th October the company has received a work order from Maharashtra Tourism Development Corporation ( MTDC) to set up and operate an eco-friendly luxury resort at Kihim in Raigad district of Maharashtra on Public Private Partner basis.
The work order is for a period of five years that could be extended up to another five years. And the company has mentioned to start the work within two months of receiving the work order.
The project is spread across 6.5 acres, the company is set to build 40 eco-friendly luxury resorts with conference hall, restaurants and dining area, indoor and outdoor recreational accommodation, yoga and ayurvedic therapies, cultural centers, medical rooms etc. With the addition of this resort company will now have 6 properties in operation and 12 under construction. Company aims to further add more eco-responsible luxury resorts across India.
Digging into the consolidated financial statements of the company,the company reported a revenue of Rs 11.97 crore in and net profit of Rs 1.17 crore in Q1FY24. Coming to the Financial ratio,Return on Equity (RoE) has decreased to 43.7 percent and Return on capital employed is at 54.53 percent during FY 22-23.
According to the latest shareholding pattern, the promoters hold 55.92 percent and the remaining 44.08 is held by the public.
Praveg is a pioneer in eco-responsible luxury hospitality. Due to the premium quality of the company’s tents it gives the customer a high-end experience. Praveg is also a strong player in events due to its roots in event management and expertise in creating large, non-permanent, world-class structures in very short periods of time. The Events division has recently diversified into Weddings and Banquets hotels.
Written by Vaibhav V Patil
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