Ayodhya Magic Fades? This Small-Cap Stock Has Slumped 57% In A Year — Check Details

The sharp rally in Praveg Ltd. last year, driven by a series of high-profile tourism catalysts, appears to have lost momentum. The small-cap stock, which had surged on the back of the Ayodhya Ram Mandir inauguration, the Vibrant Gujarat Global Summit and the ‘Chalo Lakshadweep’ campaign, has corrected sharply since then. Over the past one year, the stock is down about 57%, highlighting how quickly sentiment has turned as the initial euphoria faded.

Despite the steep correction, trading activity in the stock has picked up sharply. Volumes have been running at nearly three times the 20-day average, indicating renewed interest from market participants. A key factor behind this spike is fresh buying by the promoter.

Chairman and promoter Vishnukumar Patel has purchased 52,405 shares of Praveg from the open market between Dec. 9 and Dec. 13, 2025. The purchases were executed in multiple tranches, with the largest single-day acquisition of 45,400 shares on Dec. 13, followed by smaller buys of 2,243 shares on Dec. 12, 2,573 shares on Dec. 11 and 2,189 shares on Dec. 9. The timing of the purchases has raised the question of whether the promoter is attempting to signal confidence by seizing the dip.

The stock’s recent performance underscores the extent of the correction. While it has gained around 8% over the past one month, it remains down 16% over three months, 33% over six months and a steep 57% over the last one year. This comes after a phase of strong outperformance in 2024, when tourism-related themes dominated investor interest.

From a financial standpoint, the company has delivered strong top-line growth, albeit with some volatility in profitability. Revenue rose to Rs 167 crore in fiscal year 2025 while Ebitda stood at Rs 51 crore. However, profit declined to Rs 16 crore in fiscal 2025 from Rs 28 crore in financial year 2023, reflecting margin pressures and a higher base effect.

Looking ahead, the company expects a stronger second half of FY26, supported by multiple operational drivers. These include the seasonal reopening of properties, higher travel demand during the winter and festive months, a rebound in events and exhibitions aided by active tendering, and incremental advertising growth from its acquired business.

Praveg is regarded as a pioneer in the non-permanent luxury accommodation segment in India and has also built a strong presence in event management. More recently, the company has expanded into wedding management to diversify its revenue streams.

The company has also been actively adding marquee projects. In December last year, it secured an order to develop, operate and manage a minimum of 50 luxury tents at Agatti Island in Lakshadweep, aligning with the government’s push to promote domestic island tourism.

Ayodhya was another key milestone. Praveg’s facility in the temple town has been operational since November 2023, with an average room rate of around Rs 8,000. The property saw strong bookings ahead of the Ram Mandir inauguration, contributing to the stock’s sharp run-up last year.

With the stock now significantly off its highs, promoter buying has drawn fresh attention to the counter. Whether this marks a turning point or merely a pause in the downtrend will depend on execution in the coming quarters and the company’s ability to convert seasonal demand and new projects into sustained earnings growth.