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Check Before You Invest : Praveg Ltd

BSE: 531637 NSE: PRAVEG ISIN: INE722B01019
  |   Sector:  Travel & Hospitality   |   Industry:  Hotel, Resort & Restaurants

Snapshot

Q.1 Which industry/sub-sector does Praveg Ltd belong to?
Praveg Ltd belongs to the Travel & Hospitality sector, operating specifically within the Hotel, Resort & Restaurants segment.
Q.2 Is Praveg Ltd a good quality company?
Praveg Ltd is a average quality company, based on a somewhat consistent multi-year financial track record.

This assessment is based on company’s performance on Revenue growth, ROCE, Equity and Assets, key margin ratios, cash conversion cycle, and debt to cash flow from operations and how it compares with its long term averages.

Q.3 Is Praveg Ltd undervalued or overvalued?
Praveg Ltd appears Somewhat Undervalued, as its key valuation ratios are lower than their past averages.

Based on the industry it operates in, the relevant valuation ratios include one of the following, P/E, P/BV, P/Sales, EV/EBITDA or a combination of two or more.

Valuation Ratios Current 5-year
Historic Median
Price to Earnings - 36.05
Price to Book 1.51 7.74
Price to Sales 3.88 9.96
EV to EBITDA 19.48 23.29
Q.4 Is Praveg Ltd a good buy now?
Praveg Ltd is not a good buy now, based on weak price trend analysis suggesting prices may fall. However, you need to check its quality and valuation before making a decision

Performance Analysis

We have analysed the performance of the company on the following:

  • How has it performed on generating Profits?

    By checking its Revenue growth, Gross, Operating and Net Margins compared to its last 5-year median.

  • How efficiently has it utilized Capital?

    By checking its ROCE, ROA, ROE and its Cash Conversion Cycle.

  • How is it managing its Debt?

    By checking its Debt to Equity and Cash Flow from Operations.

A: What are the trends in revenue and profit margins?

Q.1 Revenue growth of Praveg Ltd?
Praveg Ltd revenue growth is 45.1% for FY-2025, which is above its 5-year CAGR of 17.36%, indicating faster growth.

Q.2 Gross Profit margin of Praveg Ltd?
Praveg Ltd Gross profit margin which is the profit after deduction of direct costs, is 29.4% for FY-2025, which is below its 5-year median of 35.3%, indicating decreasing margins.

Q.3 Operating Profit Margin of Praveg Ltd?
Praveg Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 29.83% for FY-2025, which is below its 5-year median of 35.16% indicating decreasing margins.

Q.4 Net Profit Margin of Praveg Ltd?
Praveg Ltd Net Profit Margin is 9.7% for FY-2025, is below its 5-year median of 23.85%, indicating decreasing margins.
Current Level 5-year
Historic Median
Gross Profit Margin (%) 29.4 35.3
Operating Profit Margin (%) 29.83 35.16
Net Profit Margin (%) 9.7 23.85

B: Does the business utilize capital efficiently?

Q.5 Return on Asset of Praveg Ltd?
Praveg Ltd Return on Asset is 2.81%, which is below its 5-year historical median of 34.83%, indicating deteriorated asset utilization efficiency.

Q.6 Return on capital employed (ROCE) of Praveg Ltd?
Praveg Ltd Return on capital employed is 6.17% for FY-2025, which is below its 5-year historical median of 54.44%. The current ROCE is below its estimated weighted average cost of capital (WACC) of 14%, indicating value preservation.

Q.7 Return on Equity (ROE) of Praveg Ltd?
Praveg Ltd Return on equity is 3.61% for FY-2025, which is below its 5-year historical median of 42.96%, indicating the business is making worse use of its shareholders capital.

Q.8 Cash conversion cycle of Praveg Ltd?
Praveg Ltd Cash conversion cycle is 60 days, in line with its 5-year historical median of 60 days, indicating stable working capital management. However, you need to compare this with its peers in the industry.
Current Level 5-year
Historic Median
Asset Turnover (x) 0.29 1.04
ROE (%) 3.61 42.96
ROCE (%) 6.17 54.44
Cash Conversion Cycle 60 days 60 days

C: How much debt does the business have and is it at a sustainable level?

Q.9 Debt to Equity ratio of Praveg Ltd?
Praveg Ltd Debt-to-Equity ratio is 0.01, which is lower the industry average of 0.06, indicating lower debt levels in the industry.

Q.10 Debt to cash flow from operations of Praveg Ltd?
Praveg Ltd Debt to cash flow from operations is 0.3, which is at a healthy level.

Ownership & governance

D: Promoter shareholding and pledge status of Praveg Ltd?

Q.1 Promoter shareholding and pledge status of Praveg Ltd?
Promoters hold 46.06% of the Praveg Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

E: How does Praveg Ltd performance compare with that of its Peers?

Q.1 Revenue growth of Praveg Ltd vs industry peers?
Praveg Ltd revenue CAGR is 17.36%, compared to the industry median CAGR of 3.58%, indicating faster growth and gaining its market share.
Profit Metrics
Current Level 5-year
Industry Median
Revenue Growth (%) 45.1 3.6
Gross Profit Growth (%) 30 15.6
Operating Profit Growth (%) 34.5 13.5
Net Profit Growth (%) - 18.8
Operating Efficiency
Current Level 5-year
Industry Median
Asset Turnover (x) 0.29 0.27
ROE (%) 3.61 2.92
ROCE (%) 6.17 6.09
Cash Conversion Cycle (days) 59.79 -

Valuation & price assessment

Q.1 Stock return of Praveg Ltd over the last decade?
Over the last 5 year(s), the stock has delivered a CAGR of 31.18% based on the current price.
9Y 5Y 3Y 1Y
Share Price
CAGR
- 31.2% -18.1% -49%
Q.2 Valuation ratios of Praveg Ltd vs historical?
The current P/E ratio of 0 is lower than its historical median of 36.05, indicating that the stock is trading below its historical average valuation.
Q.3 How do the current valuation ratios compare with 5-year historical median and industry numbers?
Valuation Ratios Current 5-year
Historic Median
5-year
Industry Median
Price to Earnings - 36.05 32.28
Price to Book 1.51 7.74 1.81
Price to Sales 3.88 9.96 5.80
EV to EBITDA 19.48 23.29 17.25

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