Shares of Praveg, known for its luxury tent resorts in tourist places, rallied 43% in just three trading sessions. During the day, the stock rallied 17% to hit an all-time high of Rs 1,187.95.
The rally in the stock began after Prime Minister Narendra Modi caught everybody’s attention on Thursday by posting photographs of him enjoying the pristine beaches of Lakshadweep and even tried snorkelling during his stay.
On Friday, Praveg shares rallied 4%. The rally intensified on Monday and the stock ended with a gain of 17.5% as #BoycottMaldives and #ChaloLakshadweep started trending on social media platforms.
The controversy began after Maldivian politicians made derogatory comments about PM Modi and mocked his visit to Lakshadweep, portraying the region as a mere tourist spot for Indians. Later on, the Maldives government suspended the three ministers who made adverse comments on PM Modi.
Praveg caught shareholder attention as it had last month received a work order for the development of operation, maintenance, and management of at least 50 tents at Lakshadweep’s Agatti Island.
The resorts at Lakshadweep will also offer commercial activities like scuba diving, destination weddings, corporate functions, etc. The work order is for a period of three years that could be extended up to another two years, the company announced recently.”The Agatti Island is home to an aquatic life which is diverse and comprises one of the most beautiful coral reefs in India. The place is home to cultural richness like no other. The rich and diverse culture of the island’s population is displayed through high-spirit and vibrant festivals and celebrations held in this place,” Praveg said.
With the addition of these properties, Praveg will now have nine properties in operation and 12 under development.
As far as the stock performance is concerned, it has already doubled in the last six months as the hospitality sector is seen to be in an upcycle phase as demand outpaces supply and room rents continue to soar.
In the meantime, shares of Easy Trip Planners were also trading about 6% higher after ending 4.7% up in the last session. The travel agent took the lead in suspending flight bookings to Maldives and urged Indians to explore Indian islands like Lakshadweep.
Shares of Indian Hotels are also in focus as the Tata Group company has plans to start two Taj-branded resorts on the islands of Suheli and Kadmat in Lakshadweep in 2026. The largecap stock was trading 2% higher.