Praveg Ltd: Play on Indian Tourism Industry!

Hello Investors,
This is my topic in this forum. Hope you all like the content and add more value to it.

Company Overview
Praveg Limited, established in 2005, started as Advertising, Event& Exhibition Management Company to becoming a pioneer in Tourism & Hospitality.

Company deals with 2 core business lines:

Exhibition & Events
Tourism & Hospitality

Company’s Journey


Tent City Varanasi:
Tent City Varanasi | Praveg Tent City Near Ganga Ghat | The Spiritual Luxury

You can find the photos in google maps if you search by Tent City Varanasi

Tent City Narmada: Tent City Narmada Official Operator of Gujarat Tourism - Praveg Communications India Limited
This is located near Statue of Unity

Tent City Narmada | An Ideal Conference Venue | Near Statue of Unity

Vibrant Vivah - YouTube Wedding Event

Glimpse on their Wedding Event

Business Model:

  1. Bids and takes land at low cost on rent from Government.
  2. Established luxury tents as depicted in the images above.
  3. Cheaper to setup a tent compared to a hotel.
  4. This reduces their expenses and margins are high compared to Hotels.
  5. Per day rent comes to be Rs 4K - 17K.
  6. Payback period is only 18 months.

A detailed video on this by Shashank

Details on various projects:

Link to Sheet: Resorts Detail - Google Sheets (please add your comments if any)

Revenue Breakdown Mar 2023:

Exhibition & Events - Rs 36.14 Cr
Tourism & Hospitality - Rs 48.61


No of Rooms Sold & Meals Served:


Balance Sheet

Key Ratios

Comparison with Peers


1. Competition Risk

  • Oberoi hotel luxury tent in Ranthambore (Prices start from 50k).
  • SUJÁN is a collection of three tented camps in Rajasthan ( Company is planning to expand to Rajasthan where local reputed brand like Sujan will give steep competition) The price range for per tent starts from Rs 59k.
  • Monitor any new player into this space, as it is an asset light model, limited entry barriers into this space with similar model.

2. Cyclicality:

  • After covid, there has been high demand on revenge travel which may eventually subside.
  • Most of its tents are located near tourist attractions, if tourist attraction demand falls, it will
    directly impact the sales of the company.
  • Govt of India promotion of tourism helped the company, a change in tourism policy may impact its sales.

3. Other Risks

  • Apart from the owned land, most of the land is taken on lease, losing tender will risk the business.
  • The events and exhibition business is dependent upon the Gujarat government projects that
  • Tent house Varanasi runs for 1 quarters during winters, based on weather such as rain can completely make the area unavailable for development of tents.

Disc: No Investment Yet


The business model looks very good, low capital investment and very high EBITDA margins. But do we have any details on the promoters?
The promoters have sold almost 5% of their stake (it includes MD and his wife) in the last one month. I wrote to the company secretary but didn’t get any detailed response.

  1. Competition risk- I don’t think that’s a big factor right now. First, Praveg is at the lower end of the market, their daily prices are between 8-12 k per night. Second, the market is highly underpenetrated. The hotel/ tent prices are very high in India compared to rest of the world due to lack of supply.
  2. Cyclicality: The best thing about Praveg is their cost model. They didn’t post any loss even during Covid. It speaks a lot about their cost model. If a hotel company can post profit during covid, then that company knows its business.
  3. Other risks- The company is diversifying its business very fast. They have gone into Rajasthan (run by a different political party) and are going into other states as well.

The good part is that they are clear that they don’t want to go into cities and invest huge amount on building assets. They are playing into this niche travel market and are not taking any debt. Until the promoters try something funny, this business model should work.


Thanks for the research.
The company never reported any sales and P/L until 2019, and then it starts of with 60 crs sales, although its been in operations for long. How can you reach 50 crs sales from 1cr sales in one year? I tried to research and look up but couldnt find the reason for sudden jump and then with the onset of virus era this business would have taken a major hit, but the P&L says its been OK.
The stock is up 1800% in 3 years and 200% in 1 year.

The reason is that Praveg got listed through a reverse merger (acquisition of a listed company).

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That’s true. The stake sale was to fund the preferential allotment. It’s worth noting that Soc Gen was among the buyers when the promoters were selling. Additionally, another meeting on June 28 for fresh funding.

Let me add few more insights on the owned resorts. These will be high-end resorts with unique ideas/concepts.

  1. Adalaj - underwater rooms
  2. Udaipur - Glass resort on hilltop
  3. Jawai - Cave resort

Praveg Safari in Javai, Velavadar and Ranthambore.

Praveg has incorporated subsidiary in Kenya and Tanzania for international expansion.

Plans are to add 10 to 12 unique concept resorts in India and internationally on an annual basis.


As a principle Praveg will fund growth with equity avoiding debt. Preferencial offers are subscribed by Promoters as well.

What about competition? It seems there are no entry barriers for others to come in. What kind of advantage the company has over others? An idea is unique only till it is not adopted, and the physical assets don’t need to be maintained by niche people, anyone can duplicate it who knows about the geographies, culture, tastes and the lifestyles of the people who live there. And this international expansion sounds too early, because there is a lot to be captured domestically.

No investment.


Thanks, was the reverse merger with Praveg Communication?

The reverse merger was with Sword & Shield Pharma. After the reverse merger, it got listed as Praveg Communications. With higher focus on the hospitality segment, the name was subsequently changed to Praveg.

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Praveg is a 1,000cr valuation company. It’s still an early stage business considering the fact that the company plans to add 10 to 12 resorts annually. Given their ideas and the performance of existing resorts, I am willing to take the risk. If things work well, the stock can be 5x or 10x in the next five years. Just a personal view and I am invested so I might be biased.

I would however urge you to hear their con call. They are very ambitious and there is a vision and passion.


That is a good question. What is the ‘Right to Win’ for praveg against others? Although, this question may be valid for Other Hotel companies as well but in this case, the capex requirement is much less.

But I don’t believe that anyone can just come and copy paste the idea. Anything involving real estate is not an easy business in India given the opaque laws and complexities involved.

But at the same time, there is no clear cut advantage for Praveg that I know of except that they are kind of first movers in this space. Also, the space looks large enough for multiple players and will only help in growing this space at a faster pace.

All in all, I think the small size of the company (approx. 1000 crore) helps at this point, but this question will become more relevant once the size grows. But I believe we will have better answers by then.!


Aug 23 Concall Highlights

  • Development of 15 resorts within a year.
  • Opened new resorts in Daman & Diu ( Tent City Chakratirth Beach Diu)
  • Received the letter of allotment to build tents in Ayodhya ( 50 tents )
  • Add 15 new resorts in financial year 2023-2024.
  • Events and Exhibition business is expected to have a lower growth rate in Quarter 2 of Financial ‘24 and show a pickup from Quarter 3 of Financial Year ‘24.
  • In Q2, already started 2 resorts that is in Diu 1 and second is in Daman 2 (Jampore Beach)
  • 6 resorts to start during Q3 existing 3 resorts, total 9 operational resorts.
  • Q1, 233 rooms were operational.
  • Dream is continuous journey in the tourism sector and theme park sector
  • Updated the operational plus to be operation in this sheet

Disc: Invested tracking amount.

I guess you are double counting 2 resorts + if you can give me access, i can add couple of things + i have high level FM i can add that also… i expect the earnings to double in 1.5 years time from here given they continue to do b2b business also…

Discl. - invested for tracking postion but will start investing after Q2 result as not much will happen till Q2 results

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I have given editor access, please feel free to add.

what is the rationale of starting the tv channel?

They have answered it in their concal
Intention is to serve as advertisment

With the growing tourism in India,
The viewership in the channel can definitely add value to the company in terms of ad targeting