Budget 2024: Praveg stock gains 3% as Lakshadweep set for tourism upgrades

Praveg stock has once again gained investors' attention, marking a 3% upswing in today's trade, settling at ₹1,001 apiece. This surge is notably linked to the mention of Lakshadweep, where Praveg holds a notable presence, in the Interim Budget 2024-2025.

The company is the pioneer in the non-permanent luxury accommodation segment in India, and it is also a strong player in event management. The company's association with Lakshadweep projects and the positive outlook expressed in the budget have reignited investor interest, leading to a notable uptick in today's session.

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Union Finance Minister Nirmala Sitharaman, while presenting the interim budget for the fiscal year 2024-2025 in Parliament today (February 1), highlighted plans for tourism infrastructure and amenities in Lakshadweep, aiming to stimulate domestic tourism and create employment opportunities.

"To address the emerging fervour for domestic tourism, projects for port connectivity, tourism infrastructure, and amenities will be taken up on our islands, including Lakshadweep. This will also help in generating employment," said the finance minister.

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Lakshadweep gained prominence when Prime Minister Narendra Modi visited the islands to boost tourism. However, after the Modi visit, three Maldivian deputy ministers made controversial remarks against the Indian Prime Minister.

This sparked a reaction on social media, with many Indians sharing images of their cancelled tickets to the Maldives.

Amid this, shares of Praveg had gained substantial momentum during the first two weeks of January, gaining 55%. The company in December secured work orders for the development, operation, maintenance, and management of a minimum of 50 tents at Agatti Island, UT of Lakshadweep.

Rise in spiritual tourism

Further, speaking on spiritual tourism, Nirmala Sitharaman said, "States will be encouraged to take up comprehensive development of iconic tourist centers, branding and marketing on a global scale. A framework for rating of the centers based on the quality of facilities and services will be established. Long-term interest-free loans will be provided to states for financing such development on a matching basis."

Also Read: Ram Mandir: Ayodhya to join Mecca, Vatican City as global pilgrim destinations after $10-billion makeover: Jefferies

Spiritual tourism in India is poised for rapid growth, as evident from the increased number of pilgrims visiting Ayodhya following the inauguration of the Ram Mandir on January 22.

Global brokerage firm Jefferies stated that religious tourism is a cornerstone of India's tourism sector, projected to reach $443 billion by FY33 with an 8% CAGR. It anticipates a significant increase in pilgrims visiting Ayodhya, reaching around 100–150k per day.

In response to this expected surge in tourism, various renowned hotel chains and hospitality companies, including IHCL (Indian Hotels Company Limited), Marriott International, Wyndham, and OYO Rooms, are planning to establish additional hotels in Ayodhya.

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