Praveg, a smallcap stock in the hospitality sector, witnessed a remarkable 20% surge in its stocks, reaching a new 52-week high of Rs 1,037.50. Investors speculated that the Ahmedabad-based luxury resort operator stands to benefit significantly from the ‘Chalo Lakshadweep’ campaign amidst the recent India-Maldives controversy.
The surge comes after Praveg secured a work order for the development, operation, maintenance, and management of a minimum of 50 tents on Agatti Island in the Union Territory of Lakshadweep last month. The resorts on Lakshadweep are poised to offer diverse commercial activities, including scuba diving, destination weddings, corporate functions, and more. The three-year work order, extendable for an additional two years, contributes to Praveg’s expansion, bringing its operational properties to nine, with 12 more in development.
Agatti Island, known for its vibrant aquatic life and beautiful coral reefs, holds cultural richness and hosts spirited festivals. Praveg aims to tap into this uniqueness to attract tourists and bolster the tourism sector on Lakshadweep.
In the context of Lakshadweep gaining attention, Easy Trip Planners also experienced a 4.7% increase in its shares. The travel agent actively participated in suspending flight bookings to the Maldives, encouraging Indians to explore Indian islands such as Lakshadweep.
The ‘Chalo Lakshadweep’ campaign gained momentum amid the India-Maldives row, sparked by derogatory comments from Maldivian politicians about Prime Minister Narendra Modi and Lakshadweep. The campaign aims to promote tourism on Indian inlands and counter the negative portrayal.
Praveg’s stock performance has been noteworthy, doubling in the last six months as the hospitality sector enters an upcycle phase. Demand surpassing supply and rising room rents contribute to the favorable outlook for the sector.
The India-Maldives controversy arose when #BoycottMaldives trended on social media after derogatory remarks about PM Modi and Lakshadweep by Maldivian politicians. PM Modi’s visit to Lakshadweep and his endorsement of exploring the adventurer in oneself further fueled the campaign.
