This multibagger stock tanks 15% after Q4 results, down 60% from record high. Do you own it?

Mulitbagger small-cap stock in focus: Shares of Praveg, a leading company with over thirty years of experience in tourism, hospitality, event management, and exhibitions, crashed 15% during Monday’s session (June 2) as investors appeared disappointed with the company’s March quarter numbers, sending the stock to a two-week low.

The company on Saturday reported a 68.9% drop in net profit to ₹3.33 crore compared to ₹10.55 crore in the December quarter. Total expenses surged to ₹55 crore in Q4FY25 from ₹41.5 crore in Q3FY25 and ₹27 crore in Q4FY24.

The decline in net profit was attributed to a substantial increase in expenses, driven primarily by higher depreciation charges and finance costs associated with the establishment of new resorts, which contributed significantly to overall expenditure.

Revenue from operations came in at ₹58 crore in the March quarter, compared to ₹54 crore in Q3FY25 and ₹32.52 crore in the March 2024 quarter. On a year-on-year basis, net profit surged by 103%. EBITDA also improved to ₹16.60 crore from ₹9.46 crore a year ago, while earnings per share rose to ₹1.58 from ₹0.73.

For the full financial year, the company’s consolidated revenue stood at ₹174.43 crore in FY25, up from ₹94.55 crore in FY24, while net profit rose to Rs16.13 crore from ₹12.95 crore.

Commenting on the results, Mr. Vishnu Patel, Chairman of Praveg Limited, said, “We are pleased with our strong revenue and operating profit growth, driven by strategic expansion and our commitment to eco-luxury hospitality. While expansion has led to higher depreciation and finance costs, impacting short-term profitability, we expect improved margins as operations stabilize.”

“Despite strong bulk room night sales at Rann Utsav Resort, only a portion has been recognized as revenue this quarter. We are also making steady progress in operationalizing our new resorts and facilities, reinforcing our growth trajectory,” he added.

Praveg Share price trend

After largely remaining under pressure, the company’s shares attracted buying interest in March and ended the following two months in the green. Between July and January 2024, the stock witnessed a one-way rally, delivering a massive return of Small

Despite currently trading 60% below its peak of ₹1,300, the stock is still up 254% over the last three years and 2,711% over the last five years. Praveg is a pioneer in the non-permanent luxury accommodation segment in India and a strong player in event management. Its association with Lakshadweep projects and the positive outlook expressed in the budget have reignited investor interest, contributing to the notable uptick in today’s session.

Disclaimer: The views and recommendations given in this article are those of individual analysts. These do not represent the views of Mint. We advise investors to check with certified experts before taking any investment decisions.