Multibagger Praveg Stock at 30% Discount: Is This the Perfect Time to Invest in the Next Big Hotel Industry Play?
Shares of Praveg, a leading company with over three decades in tourism, hospitality, and event management, have dropped 30% from their all-time high of ₹1,300 per share since the start of 2024. However, domestic brokerage firm Monarch Networth Capital believes the stock might soon bounce back as Praveg is positioning itself as a key player in the hospitality sector with a cost-efficient business model, putting it ahead of its competitors in the hotel industry.
From Events to Hospitality
Praveg, initially recognized for organizing major events like the White Rann Festival and Vibrant Gujarat, entered the hospitality sector in 2015. The company focuses on creating unique staycation experiences in culturally and environmentally significant locations. By using non-permanent structures like luxury tents, Praveg offers high-end tourism experiences with minimal environmental impact.
A Unique Business Model
Monarch Networth Capital highlighted Praveg’s innovative approach, which includes setting up resorts in prime locations like Ayodhya, Daman & Diu, Tent City Narmada at the Statue of Unity, and the White Rann Utsav in Kutch. The brokerage also noted that Praveg plans to expand further with ambitions to establish a presence in new locations.
Setting up these luxury tents is surprisingly economical. Unlike traditional hotels that require extensive construction work, Praveg’s tents are cheaper and quicker to set up. The process involves one-time expenses for seasonal properties, and if a lease ends, the tents can be dismantled and moved elsewhere. This flexibility reduces costs and allows Praveg to quickly start operations in various locations.
