Praveg Ltd Q1FY26 – Eco-Resorts, Event Tents & a 120x P/E Tent-Pole Drama
1. At a Glance
Praveg Ltd (BSE: 531637) is what happens when an advertising agency decides that weddings, resorts, hoardings, and lion-day celebrations are all the same business model. Market cap: ₹1,008 crore, CMP ₹386 (down –51% in 1 year). P/E: an eye-watering 120x, ROE: 4.4%. FY25 revenue ₹183 crore, PAT ₹8.4 crore, OPM 27%.
Quarterly June’25: sales ₹39.4 crore (+68% YoY), but PAT –₹6.1 crore (a.k.a. the resorts had more guests than profits). Stock has collapsed from ₹799 highs to ₹386 lows. Investors are left wondering: “Is this the new Indian Hotels or just a glorified shaadi tent with NSE-listing ambitions?”
2. Introduction
Praveg is that over-enthusiastic cousin at an Indian wedding—handling catering, DJ, décor, hotel bookings, and also the after-party safari. Originally an event management firm, it has shapeshifted into eco-luxury resorts, government PPP theme parks, and most recently, advertising hoardings.
The company loves headlines: 15 resorts, 710+ rooms, 2,10,000+ meals served, 1,000+ events organized, 2,000+ exhibitions staged. They’ve even signed up for Rann Utsav as the master franchise, opened Lakshadweep luxury cottages, and run theme parks with 30-year PPP leases.
But the financials? Margins swing like a baraat dancer at 2 a.m., profits are inconsistent, and debt is creeping up. Yet, the company confidently plans 2,500+ rooms across 65 resorts by 2028. Dream big, right?
Question: Do you trust this cousin with your wedding budget when he’s already late on the mehendi payments?
3. Business Model – WTF Do They Even Do?
Hospitality (77% FY24): Eco-responsible luxury resorts across Lakshadweep, Rajasthan, Daman & Diu, Maharashtra, UP. Resorts cater to high-spending tourists, often via government tie-ups.
Events & Exhibitions (23% FY24): Large-scale exhibitions, cultural programs, government events, weddings, banquets. Known for “erecting massive temporary structures in record time.” Basically Shaadi.com meets DMRC contractor.
Advertising (17% 9M FY25): Post 2024 acquisition of Abhik Advertising & Bidhan Advertising. Deals in hoardings, airport rights, TV/radio buys. Think “from lion tents to LED billboards.”
The company now wants to be India’s answer to both Indian Hotels and Wizcraft, with a sprinkle of Times OOH.
4. Financials Overview
Source table
Metric
Latest Qtr (Jun’25)
YoY Qtr (Jun’24)
Prev Qtr (Mar’25)
YoY %
QoQ %
Revenue
₹39.4 Cr
₹23.4 Cr
₹58.1 Cr
+68%
–32%
EBITDA
₹5.8 Cr
₹6.3 Cr
₹15.4 Cr
–8%
–63%
PAT
–₹6.1 Cr
₹0.8 Cr
₹3.3 Cr
–908%
–286%
EPS (₹)
–2.35
0.29
1.55
NA
NA
Commentary: Sales up, profits down. This is like a wedding where the guests double but the groom still goes home broke.
5. Valuation Discussion – Fair Value Range Only
P/E Method
FY25 EPS = ₹3.27. Industry avg. P/E ~37x. Fair value = ₹120–₹150.
EV/EBITDA Method
EV ₹1,067 Cr, EBITDA ₹49 Cr → EV/EBITDA ~22x. Peers trade at 15–20x. Fair value = ₹180–₹230.
DCF Method
FCF negative in FY25 due to capex. Assume normalized FCF ₹20 Cr, growth 15%, discount 12%. DCF fair = ₹140–₹180.
Fair Value Range: ₹120 – ₹230 (vs CMP ₹386).
Disclaimer: Educational purpose only, not investment advice.
6. What’s Cooking – News, Triggers, Drama
Theme Park PPP: Opened Adalaj Theme Park in Sep 2025 on 30-year PPP lease.
New Resorts: Kachigam eco-resort, Lakshadweep island villas, Daman luxury cottages. Basically, “from beaches to deserts, we
