Hi Harsh,

well done on the write up and thorough research. I am also invested heavily. in this script. Another positive currently is it travels below FV and BV.

Regarding low earning multiples, following are some of the potential reasons.

1. The corporate governance appears below average.
   (Reason 1: All independent directors resigned in August 2023 on the same day. The curious thing is all sighted the same reason and all resignation letters have same format and fonts. Also none of the independent directors took any sitting fees, which is highly unusual. All these resonably indicates that independent directors are not independent.)
   (Reason 2: The promoters itself voted against the resolution for splitting the shares, indicating an immaturity.)
   (Reason 3: BOD seems nothing but the family get-togather.)
   (Reason 4: The promoters have a history of issuing shares or warrants to itself briefly before a big positive for the company in terms of profits.)

2. The fate of the company is dependent on one commodity as well as completely on imports. Any change in the stance of the Govt regarding import of Bitumen can completely destroy the company.

3. Some subsidiaries have been incorporated in Cayman. Why? Nobody know. Nothing of that sort has been discussed in any AGM or ConCall.

4. Low float.

5. Value addition is very low in the product. The company is engaged mostly in logistics and selling the Bitumen.

Now, above points are not sufficient to not own the company. So, I am highlighting some positive points.

1. Good cashflow.
2. Some degree of competitive advantage.
3. Beneficial subsidiary structure to completely avoid income tax on a good portion of profits. (Why? How? Figure out on your own.)
4. No planned capacity addition of Bitumen by domestic manufacturers. So, import has to happen.
5. The company has imported high quantity of Bitumen between April-August, 2024 v/s the same period for last year. (This is a reason to own for short term, if you like to do it)
6. Rain is heavy this season across the India. Good demand is anticipated for repairs. However, new road construction is expected to remain subdued. (Again a short term reason.)