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Praveg Ltd, a rising player in India’s experiential tourism and event infrastructure space, has bagged a new contract worth approximately ₹40 million, announced on August 4, 2025. The development reinforces the company’s aggressive expansion strategy and its growing reputation for delivering high-quality, turnkey solutions across hospitality, exhibitions, and eco-tourism.
The contract win comes amid a series of strategic moves by Praveg, including partnerships, resort launches, and corporate restructuring, all aimed at scaling its footprint across India’s high-growth tourism corridors.
Key Highlights of the Announcement
Praveg Ltd has been awarded a contract valued at ₹40 million for infrastructure development and experiential service delivery.
The scope includes design, setup, and management of eco-tourism facilities, aligned with sustainable hospitality standards.
The project is expected to be executed over the next two quarters, contributing to FY26 revenue visibility.
Strategic Importance of the Contract
Strengthening Core Business
The contract aligns with Praveg’s core expertise in setting up tent cities, beach resorts, and nature-based retreats.
It adds to the company’s portfolio of government and private sector collaborations in tourism infrastructure.
Revenue Diversification
With this ₹40 million addition, Praveg continues to diversify its revenue streams beyond resort operations.
The company has previously executed similar projects in Ayodhya, Dholavira, and Velavadar, which have shown strong occupancy and ROI.
Brand Credibility and Execution Track Record
Praveg’s ability to deliver high-quality, sustainable tourism experiences has earned it repeat contracts from state tourism boards and private developers.
The company’s recent partnership with IHCL to manage its Bangaram Island resort under the SeleQtions brand further validates its operational excellence.
Financial and Market Impact
The announcement led to a modest uptick in Praveg’s stock, which closed at ₹464.35 on BSE, up 0.53% from the previous session.
Analysts expect the contract to contribute positively to Q2 and Q3 FY26 topline, with margin expansion likely due to asset-light execution.
The company’s current market cap stands at ₹1,197 crore, with a high P/E ratio of 92.8x, indicating strong growth expectations but also valuation caution.
Operational Expansion and Future Outlook
Upcoming Projects
Praveg plans to add 577 rooms across new resorts in Udaipur, Ranthambore, and other heritage destinations.
The company aims to reach 2,500 rooms across 65+ locations by FY27.
Sustainability and ESG Focus
The new contract includes eco-sensitive design mandates, aligning with Praveg’s sustainability goals.
The company’s Business Responsibility and Sustainability Report (BRSR) for FY25 highlights its commitment to green tourism and community engagement.
Corporate Developments
Praveg recently received BSE approval for reclassification of its promoter group into public shareholders, enhancing transparency and governance.
The proposed amalgamation with Eulogia Inn Pvt Ltd is expected to streamline operations and unlock synergies in hospitality management.
Investment Perspective
Praveg’s consistent contract wins and strategic partnerships make it a promising long-term play in India’s booming tourism sector.
However, its high valuation and modest ROE (2.17%) and ROCE (3.07%) suggest cautious entry is advisable.
Investors with a medium- to long-term horizon and appetite for small-cap volatility may consider staggered accumulation, especially if Q2 results show margin improvement.
Conclusion
Praveg Ltd’s latest ₹40 million contract win underscores its growing clout in India’s experiential tourism and event infrastructure space. With a strong execution record, expanding resort portfolio, and strategic partnerships, the company is well-positioned to capitalize on India’s tourism boom. While valuations remain elevated, the fundamentals and growth pipeline offer compelling reasons to keep Praveg on the investment radar.
Source: The Economic Times – August 4, 2025
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