Prime Minister Narendra Modi's recent visit to Lakshadweep has spiked Google searches on the islands. Following the visit, comparisons between Lakshadweep and renowned beach destinations like the Maldives and Seychelles were made by many.
The hashtag "#BoycottMaldives" trended on X (formerly Twitter) in India after three Maldivian deputy ministers made controversial remarks against the Indian prime minister. Many Indians took to social media to share their cancelled tickets to Maldives and their reservations on the island nation.
Amidst this scenario, Praveg's shares have garnered considerable investor attention as the leading eco-responsible luxury resorts company has secured a work order for the development, operation, maintenance, and management of a minimum of 50 tents at Agatti Island, UT of Lakshadweep, according to the company's exchange filing made on December 20, 2023.
Although the shares reacted positively after this announcement, the recent wave of fresh buying is primarily attributed to the anticipated spike in tourism in Lakshadweep. Investors foresee long-term benefits for the company, aligning with the expected surge in tourism in the region.
In today's trading session, the stock was locked in the 20% upper circuit limit, hitting a new record high of ₹1,219 per share. This noteworthy increase builds on gains of 17.51% and 4.51% in the preceding two trading sessions, resulting in an overall cumulative gain of 47% for the stock.
From a trading price of just ₹2.45 apiece five years ago, the stock has seen a remarkable rise of 50000% to trade at the current level of ₹1,219. If an investor invested ₹10,000 in the shares 5 years ago and remained invested until the present day, the wealth would have grown to a staggering ₹50 lakh.
The stock has delivered consistent returns over the extended period. In every year since CY19, the stock has gained over 50%. Notably, in CY20 and CY21, the stock generated multi-bagger returns of 1086% and 210%, respectively. In CY22, it gained 79% while it gained 167% in CY23. In the current month so far, it is already up by 67%.
Praveg is the pioneer in the non-permanent luxury accommodation segment in India, and it is also a strong player in event management. It has recently forayed into wedding management.
The company secured its first contract from Gujarat Tourism in 2013 to develop a tent city in the Rann of Kutch for the Rann Utsav festival. In 2018, it bagged a tender to develop a similar tent city near the Statue of Unity.
Over the years, the company bagged multiple orders. In addition to the recent Lakshadweep work order, December witnessed the company securing multiple contracts. It received new work orders from the Department of Tourism, U.T. Administration of Dadra & Nagar Haveli, and Daman & Diu. These orders are for the operation, maintenance, and management of Jalandhar House, Diu, and Damanganga Circuit House, Silvassa, on a licence basis.
With the addition of these properties, Praveg will now have nine properties in operation and 12 under development. The company aims to further add more eco-responsible luxury resorts across India.
Disclaimer: We advise investors to check with certified experts before making any investment decisions.
