THIS small-cap stock becomes beneficiary of #ChaloLakshadweep campaign, surges 17%

The India-Maldives row over Lakshadweep became a blessing in disguise for an Ahmedabad-based small-cap firm, Praveg. Shares of Praveg, a luxury resort company that is also developing a tent city in Lakshadweep, surged 17.51 per cent on Monday to settle at Rs 1,015.95 on the BSE. 

The sharp surge in the firm's stock prices was immediately linked to Indian tourists' renewed interest in Lakshadweep following Prime Minister Narendra Modi's visit to the archipelago and subsequent critical comments from Maldives.

Also read: 'Learn from Sri Lanka': Maldiviain President warned of China's debt-trap policy as he arrives in Beijing

"Tourists line up to travel to Lakshadweep and Ayodhya. Investors lining up to buy Praveg shares," said Vinod, an investor.

Earlier today, MyGov, a government platform, said the search interest worldwide for Lakshadweep reached its highest point in 20 years following PM Modi's visit last week.
  
The negative sentiments among the Indian tourists against the Maldives have opened an opportunity for firms operating in Lakshadweep. In December last year, Praveg announced that it had received the work order for the development, operation, maintenance, and management of at least 50 tents at Agatti Island of Lakshwadeep, with a cloakroom, changing room, along with commercial activities like scuba diving, destination wedding, corporate functions, and many more facilities.

The Ahmedabad-headquartered firm said that the work order was for a period of three years that could be extended up to another two years. "Once Praveg Tent City, Agatti Island project is operational, our guests will experience Praveg’s world-class eco-responsible hospitality," said Vishnu Patel, Chairman of Praveg, which also has Tent Cities in Varanasi and Ayodhya.

"With this recent expansion, Praveg now boasts a substantial portfolio of 580 operational rooms spread across multiple states. Our estimates project and impressive occupancy rate of 55-60 per cent and an average room rate of INR 9500-12500. By combining luxury with eco-responsibility and highlighting the unique cultural and natural aspects of Agatti Island, Praveg aims to solidify its position in the hospitality industry and attract travelers seeking a distinctive and sustainable getaway," he had said.

Shares of Praveg, which also operates luxury resorts in Diu & Daman, and Rann of Kutch, have soared three times in the last one year and a whopping 42,000 per cent in 5 years. Many attribute this rise to the developments in Ayodhya, where the Ram temple is being built.

Former aviation minister Praful Patel on Sunday said that the Centre was planning to transform Agatti airport into a world-class international facility - news that may also have pushed the stock prices of Praveg. "This game-changer will boost tourism, connectivity & development in Lakshadweep, offering immense potential for the islands," said Patel.

Prime Minister Modi visited Lakshadweep on January 2 and 3. In a tweet a day later, he said he was still "in awe of the stunning beauty" of its islands. "In addition to the scenic beauty, Lakshadweep's tranquility is also mesmerising," he said. "For those who wish to embrace the adventurer in them, Lakshadweep has to be on your list. During my stay, I also tried snorkelling - what an exhilarating experience it was!"

Online travel booking app MakeMyTrip said that it had observed a 3400 per cent increase in searches for Lakshadweep ever since PM Modi's visit. The firm said that this interest in the Indian beaches had inspired it to launch a 'Beaches of India' campaign on the platform with offers and discounts to encourage Indian travellers to explore the country's beaches.

Also read: ‘Lakshadweep’ search interest on Google tops 20 years after PM Modi visit, Maldives row