In my opinion, the nature of room chartering business leaves many questions to ponder over. Several lakhs of room nights were claimed to have been managed at a high occupancy rate with the help of 300 or so agents. Such a business, can be managed only with the help of good software and we have not seen the evidence of use of such software by the company so far - it is at least not a part of company’s main software. Moreover, company claims that this business catered to religious tourism in 30 odd towns and cities. Which are those 30 cities or towns which cater to such large scale religious tourism has never been revealed. Is it a coincidence that the company business began floundering after implementation GST which forced documentation of the business?
Nonetheless, I believe their regular business model is sound, and if they try they can recover. The cloud on the nature of their chartering business can disappear if they clarify how this business was run and why it collapsed. They owe it to their shareholders, many of whom have lost lot of money.
Has anyone heard of other companies in India doing such a chartering business? If some others are carrying out such business at large scale, we can have more clarity on this issue.
Disclosure: have a few shares for tracking this stock
