Designing Experiences, Delivering Margins
Pioneering eco-responsible luxury hospitality & bespoke experiences, seamlessly blending nature, culture & commerce.
COMPANY OVERVIEW
Praveg Ltd. stands out as a leader in eco-responsible luxury hospitality, where sustainable practices blend seamlessly with premium guest experiences. They operate primarily through two dynamic verticals. Their Hospitality arm crafts unique eco-luxury resorts, alongside expanding into high-end destination weddings and banquets. Complementing this is their Event Management & Advertising division, which provides comprehensive event solutions while pioneering high-margin outdoor media, notably through their innovative smart toilet advertising model. This dual focus allows Praveg to deliver distinctive experiences and effective promotional strategies.
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BUSINESS SEGMENTS
Praveg drives growth through two dynamic & synergistic segments:
HOSPITALITY
At the core of Praveg’s business lies its vision to build not just hotels — but experiential destinations. The company isn’t putting up cookie-cutter hotels in metros; instead, it’s crafting eco-conscious, high-end resorts in culturally and ecologically rich regions — think wilderness retreats, island escapes, riverfront camps, and desert luxury tents.
This segment is where Praveg’s brand, growth strategy, and investor narrative truly converge.
📌 Q4FY25: The Picture So Far
As of FY25-end, the company operates 775+ rooms spread across 15 resorts and 1 hotel, and is clearly on its way to achieving its Vision 2028 target of 2,500+ rooms across 55–65 locations.
There’s been a strategic shift toward fewer but more exclusive properties — each designed to offer a strong Average Room Rate (ARR), lower competition, and high guest stickiness. Resorts like Jawai and Serengeti are being positioned more like private sanctuaries than hotels.
Just in H2FY25, four new resorts were launched — including a scenic getaway at Silvassa, a beach resort in Diu, an upscale jungle retreat at Jawai, and a high-end island resort at Bangaram (Lakshadweep) — which is being operated under the SeleQtions brand by Indian Hotels (Taj group). In addition to Taj, the company has also signed a bulk booking partnership with Mahindra Holidays, allocating 80 rooms from its portfolio into their network — this helps drive steady, off-season occupancy and customer acquisition without operational dependence.
What’s impressive is that even in their first year of operations, and despite nearly 60% of resorts being recently commissioned, Praveg has managed to maintain a 34–35% consolidated EBITDA margin, which the management expects will rise closer to 40% once the properties mature over the next 12–18 months.
The company has also introduced a clever asset-light strategy: instead of owning every piece of land or building, it’s partnering with landowners who fund the development, while Praveg provides full turnkey resort design, branding, and management — effectively turning real estate into long-term annuity streams, with zero capex burden.
EVENT MANAGEMENT & ADVERTISING
This segment leverages event execution expertise alongside a rapidly growing, high-margin advertising arm. A key driver is the zero-CAPEX smart toilet advertising model, which, along with other outdoor media wins, is expanding to new states like Rajasthan & Maharashtra. This segment is expected to achieve 80-90% YoY revenue growth and boasts a 30% net margin, establishing itself as a significant revenue engine.
What Happened in Q4FY25?
The company has acquired two seasoned advertising agencies — Bidhan and Abhik — which not only bring 700+ hoardings under management, but also give Praveg access to long-term government contracts, public infrastructure ad rights, and creative execution teams.
Their unique “smart toilet + billboard” model — where Praveg maintains public washrooms and earns ad revenue from large hoardings placed above or around them — is gaining traction fast. What makes this model remarkable is that governments bear the infrastructure cost, while Praveg manages the asset and monetizes the visibility.
Major clients include HPCL, state tourism departments, and urban authorities. There’s also a pipeline to expand this model into Delhi, Gurgaon, Goa, and Tier-1 highway corridors.
Unlike hospitality, this vertical requires minimal capex, scales fast, and provides recurring, annuity-style revenue — a perfect complement to the more capital-intensive resort business
CAPEX & FUNDING
Praveg currently has an active work-in-progress (WIP) pipeline of ₹100 crore, primarily earmarked for its flagship 200-room development at Thinnakara Island in Lakshadweep. For FY26, the company expects to invest an additional ₹30–40 crore to complete 4–5 resorts already in advanced stages of development.
What’s notable is Praveg’s capital-light funding strategy. The company continues to operate with zero debt and funds most of its growth through internal accruals. But the real edge comes from its "operation & development" model — a clever structure where landowners fund the physical development, while Praveg steps in with its in-house engineering, design, and resort management expertise.
In return, Praveg takes over operations for 15 to 30 years, turning these properties into long-term annuity-style income streams — all with minimal upfront capital on its own books.
FINANCIAL
FUTURE OUTLOOK
Aggressive Expansion: Targeting 2,500+ rooms across 55-65 locations by Vision 2028, including 200 rooms for Thinnakara (currently WIP).
Asset-Light Model: Unique "operation & development" model minimizes Praveg's CAPEX; ₹100 Cr WIP is ongoing, with only ₹30-40 Cr CAPEX needed for FY26.
Segment Growth: Strong performance expected from eco-luxury resorts (new launches like Jawai & Bangaram) and the high-margin Advertisement segment, which anticipates 80-90% YoY revenue growth with a 30% net margin.
Market Tailwinds: Benefits from strong demand in Indian tourism, hospitality, & events.
STRENGTH AND RISK
If you an investor who keeps looking for such analysis on small & mid cap stocks, you can join our Emerging Titans model portfolio where we share detailed reports on such ideas.
We are SEBI registered Research Analyst (with Registration No. INH000019789
Disclosure
This article is for educational purposes only and does not constitute investment advice. Readers should consult a SEBI-registered advisor before making investment decisions.
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