Generic selectors
Exact matches only
Search in title
Search in content
Post Type Selectors
post
Last Updated on: 22 November, 2024
Author: Getaka|Social: Getaka Financial Services X (Earlier Twitter) Profile Getaka Financial Services LinkedIn Logo

Panama Petrochem Ltd: Intrinsic Value and Fundamental Analysis

Share Price and Basic Stock Data

Last Updated: November 21, 2024, 9:40 pm

Market Cap 1,877 Cr.
Current Price 310
High / Low452/291
Stock P/E9.55
Book Value 194
Dividend Yield2.26 %
ROCE24.5 %
ROE18.7 %
Face Value 2.00
PEG Ratio0.21

Stock P/E, Current Price, and Intrinsic Value Over Time

View Share Price Target for Panama Petrochem Ltd

Competitors of Panama Petrochem Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
HP Adhesives Ltd 699 Cr. 76.2131/75.334.0 19.20.39 %17.7 %12.6 % 2.00
Haryana Leather Chemicals Ltd 41.8 Cr. 85.2124/48.79.25 87.21.17 %8.96 %7.25 % 10.0
Hardcastle & Waud Mfg Co Ltd 54.4 Cr. 7991,355/44228.5 6630.00 %7.00 %5.98 % 10.0
Grauer & Weil (India) Ltd 4,634 Cr. 102120/58.328.9 19.20.49 %26.1 %19.6 % 1.00
DMCC Speciality Chemicals Ltd 733 Cr. 292380/24555.3 85.40.34 %10.8 %5.68 % 10.0
Industry Average12,153.36 Cr898.8055.54181.120.34%13.12%10.00%6.77

All Competitor Stocks of Panama Petrochem Ltd

Quarterly Result

MonthDec 2020Mar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023
Sales420542551563509508552614573510530574512
Expenses346461475481442439465525505444471513456
Operating Profit74817782686986896866586156
OPM %18%15%14%15%13%14%16%14%12%13%11%11%11%
Other Income3111131113542
Interest2222212334444
Depreciation2222222222222
Profit before tax73787479656983856463575852
Tax %27%23%22%21%17%18%22%21%21%19%19%20%20%
Net Profit53605862545665675051464741
EPS in Rs8.789.929.6010.248.959.2910.6811.158.298.407.597.766.84

Last Updated: Unknown

Quarterly Chart

Profit & Loss - Annual Report

Last Updated: Unknown

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023TTM
Sales5846356358057528341,3261,2691,0031,4472,1322,2492,126
Expenses5416146047737047591,2191,1699501,2571,8361,9401,884
Operating Profit44203132487510810053190296309242
OPM %7%3%5%4%6%9%8%8%5%13%14%14%11%
Other Income53112423466714
Interest886889142517971217
Depreciation12235556788910
Profit before tax391323223766907232180286295230
Tax %22%8%22%18%31%33%32%27%10%25%20%21%
Net Profit311218182544615229135230233185
EPS in Rs4.751.842.922.934.167.2410.088.584.7622.3738.0838.5130.59
Dividend Payout %14%29%26%46%8%9%12%14%25%9%21%21%

Profit & Loss Yearly Chart

YoY Net Profit Growth

Year2012-20132013-20142014-20152015-20162016-20172017-20182018-20192019-20202020-20212021-20222022-2023
YoY Net Profit Growth (%)-61.29%50.00%0.00%38.89%76.00%38.64%-14.75%-44.23%365.52%70.37%1.30%
Change in YoY Net Profit Growth (%)0.00%111.29%-50.00%38.89%37.11%-37.36%-53.39%-29.48%409.75%-295.15%-69.07%

Panama Petrochem Ltd has shown an inconsistent trend in YoY Net Profit Growth (%) in the last 11 years from 2012-2013 to 2022-2023.

Growth

Compounded Sales Growth
10 Years:14%
5 Years:13%
3 Years:18%
TTM:20%
Compounded Profit Growth
10 Years:26%
5 Years:30%
3 Years:12%
TTM:1%
Stock Price CAGR
10 Years:23%
5 Years:37%
3 Years:6%
1 Year:1%
Return on Equity
10 Years:20%
5 Years:24%
3 Years:26%
Last Year:19%

Last Updated: Unknown

Balance Sheet

Last Updated: November 14, 2024, 7:55 pm

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024Sep 2024
Equity Capital988881212121212121212
Reserves2232312412643053594024215497569401,0911,162
Borrowings2217425733451605166300260
Other Liabilities168205207162323559346273366455282281329
Total Liabilities4224614984926699769197579931,2531,2351,4091,503
Fixed Assets7377119123125134156173185230248287283
CWIP6400041411172251319
Investments0002100005423
Other Assets3433453793665388287525677851,0139701,1201,209
Total Assets4224614984926699769197579931,2531,2351,4091,503

Reserves and Borrowings Chart

Cash Flow

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Cash from Operating Activity +-8430-12185934-7817956170210-28
Cash from Investing Activity +0-36-13-12-21-14-22-20-15-111-7966
Cash from Financing Activity +1-2311-2-36-681-136-1-67-96-40
Net Cash Flow-83-29-144214-192340-935-2

Free Cash Flow

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Free Cash Flow44.00-2.0014.00-10.00-9.0042.0063.00-60.002.00124.00266.00309.00

Free Cash Flow = Income Generated from Operational Activities - Borrowings - Capital Work in Progress (CWIP)

Consistent positive free cash flow is crucial for businesses as it indicates their ability to generate cash from their core operations. It provides financial flexibility, allowing companies to invest in growth opportunities, pay dividends to shareholders, reduce debt, and weather economic downturns more effectively.

Free Cash Flow Chart

Financial Efficiency Indicators

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Debtor Days689679758077909182545763
Inventory Days828486931611451341111221086893
Days Payable1031239785164173110112110945546
Cash Conversion Cycle47586882774911490946870109
Working Capital Days69677189806311295897377111
ROCE %9%12%11%15%22%27%20%9%34%41%35%24%

Financial Efficiency Indicators Chart

Share Holding Pattern

MonthDec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024Sep 2024
Promoters71.11%71.11%71.11%70.37%70.37%69.87%69.87%69.25%67.30%65.83%61.94%61.94%
FIIs3.89%3.80%3.69%2.74%3.25%3.20%3.45%5.83%8.31%10.03%14.88%14.71%
DIIs0.02%0.30%0.17%0.00%0.00%0.00%0.00%0.04%0.01%0.01%0.26%0.06%
Public24.97%24.79%25.03%26.89%26.39%26.93%26.69%24.89%24.36%24.10%22.92%23.28%
No. of Shareholders25,48730,09326,84226,00225,06824,14824,29126,45627,21826,63325,12527,275

Shareholding Pattern Chart

No. of Shareholders

This stock is not held by any mutual fund

ROCE Trend

EPS Trend

Key Financial Ratios

MonthMar 24Mar 23Mar 22Mar 21Mar 20
FaceValue2.002.002.002.002.00
Basic EPS (Rs.)32.2638.5138.0822.374.76
Diluted EPS (Rs.)32.2638.5138.0822.374.76
Cash EPS (Rs.)33.8840.0739.4723.635.96
Book Value[Excl.RevalReserv]/Share (Rs.)182.27157.37126.9992.7371.58
Book Value[Incl.RevalReserv]/Share (Rs.)182.27157.37126.9992.7371.58
Revenue From Operations / Share (Rs.)389.54371.69352.49239.19165.76
PBDIT / Share (Rs.)44.3952.1649.8832.419.40
PBIT / Share (Rs.)42.7750.6048.4931.158.20
PBT / Share (Rs.)39.8048.6947.3229.675.31
Net Profit / Share (Rs.)32.2638.5138.0822.374.76
NP After MI And SOA / Share (Rs.)32.2638.5138.0822.374.76
PBDIT Margin (%)11.3914.0314.1413.555.66
PBIT Margin (%)10.9713.6113.7513.024.94
PBT Margin (%)10.2113.0913.4212.403.20
Net Profit Margin (%)8.2810.3610.809.352.86
NP After MI And SOA Margin (%)8.2810.3610.809.352.86
Return on Networth / Equity (%)17.6924.4629.9824.126.64
Return on Capital Employeed (%)23.1731.7837.7332.9811.22
Return On Assets (%)13.8418.8618.3813.633.80
Total Debt / Equity (X)0.020.000.030.110.11
Asset Turnover Ratio (%)1.781.491.481.531.06
Current Ratio (X)3.813.562.131.861.80
Quick Ratio (X)2.132.371.100.990.98
Inventory Turnover Ratio (X)4.763.402.833.492.41
Dividend Payout Ratio (NP) (%)24.7923.3610.500.0025.22
Dividend Payout Ratio (CP) (%)23.6022.4510.130.0020.14
Earning Retention Ratio (%)75.2176.6489.500.0074.78
Cash Earning Retention Ratio (%)76.4077.5589.870.0079.86
Interest Coverage Ratio (X)14.9527.2742.7521.923.26
Interest Coverage Ratio (Post Tax) (X)11.8721.1433.6416.132.65
Enterprise Value (Cr.)1894.571541.821494.48870.27190.59
EV / Net Operating Revenue (X)0.800.680.700.600.19
EV / EBITDA (X)7.054.894.954.443.35
MarketCap / Net Operating Revenue (X)0.840.780.750.600.18
Retention Ratios (%)75.2076.6389.490.0074.77
Price / BV (X)1.821.852.091.570.41
Price / Net Operating Revenue (X)0.840.780.750.600.18
EarningsYield0.090.130.140.150.15

Profitability Ratios (%)

Liquidity Ratios

Liquidity Ratios (%)

Interest Coverage Ratios (%)

Valuation Ratios

Fair Value

Fair Value of Panama Petrochem Ltd as of November 22, 2024 is: 354.28

Calculation basis:

  • Fair value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100)
  • P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
  • Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance.
  • Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
  • Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.

This formula allows us to gauge the fair value of the stock by analyzing its fundamental indicators.

As of November 22, 2024, Panama Petrochem Ltd is Undervalued by 14.28% compared to the current share price 310.00

Intrinsic Value of Panama Petrochem Ltd as of November 22, 2024 is: 513.97

Calculation basis:

  • Intrinsic value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100) * (1 + EPS CAGR for Last 5 Years)
  • P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
  • Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance.
  • Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
  • Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.
  • EPS CAGR (Compound Annual Growth Rate): Represents the geometric mean growth rate of earnings per share over the last 5 years. It provides insight into the historical growth trajectory of the company's earnings.

This formula allows us to gauge the intrinsic value of the stock by analyzing its fundamental indicators along with EPS growth.

As of November 22, 2024, Panama Petrochem Ltd is Undervalued by 65.80% compared to the current share price 310.00

Last 5 Year EPS CAGR: 45.08%

*Investments are subject to market risks

Strength and Weakness

StrengthWeakness
  1. The stock has a high average ROCE of 21.58%, which is a positive sign.
  2. The company has higher reserves (534.15 cr) compared to borrowings (42.23 cr), indicating strong financial stability.
  3. The company has shown consistent growth in sales (327.31 cr) and profit (106.54 cr) over the years.
  1. The stock has a high average Working Capital Days of 83.00, which may not be favorable.
  2. The stock has a high average Cash Conversion Cycle of 77.17, which may not be favorable.

Stock Analysis

  • Considering all of the following key financial indicators, prospective investors are encouraged to conduct thorough research and seek professional guidance before considering any investment in Panama Petrochem Ltd:
    1. Net Profit Margin: 8.28%
      • Net Profit Margin: This metric indicates the percentage of profit a company makes from its total revenue. A higher net profit margin is generally desirable as it reflects better profitability.
    2. ROCE: 23.17% (Industry Average ROCE: 13.12%)
      • ROCE (Return on Capital Employed): ROCE measures a company's profitability and the efficiency with which its capital is employed. A higher ROCE indicates efficient use of capital.
    3. ROE%: 17.69% (Industry Average ROE: 10%)
      • ROE (Return on Equity): ROE measures a company's profitability relative to shareholders' equity. A higher ROE indicates efficient use of shareholders' funds.
    4. Interest Coverage Ratio (Post Tax): 11.87
      • Interest Coverage Ratio: The interest coverage ratio measures a company's ability to cover its interest payments on outstanding debt. A ratio greater than 2 is generally considered healthy as it indicates the company can meet its interest obligations comfortably.
    5. Quick Ratio: 2.13
      • Quick Ratio: The quick ratio assesses a company's ability to cover its short-term liabilities with its most liquid assets. A ratio higher than 1 suggests the company can meet its short-term obligations without relying heavily on inventory.
    6. Stock P/E: 9.55 (Industry average Stock P/E: 55.54)
      • Stock P/E (Price-to-Earnings) Ratio: The P/E ratio compares a company's current share price to its earnings per share. A lower P/E ratio relative to industry peers or historical values may indicate that the stock is undervalued.
    7. Total Debt / Equity: 0.02
      • Total Debt / Equity: This ratio measures a company's financial leverage by comparing its total debt to its total equity. A lower ratio indicates lower financial risk and greater financial stability.
    The current analysis is available for review. It's important to conduct thorough research and consider consulting with financial professionals before making any investment decisions.
    Stock Rating:

About the Company - Qualitative Analysis

Panama Petrochem Ltd. is a Public Limited Listed company incorporated on 09/03/1982 and has its registered office in the State of Gujarat, India. Company’s Corporate Identification Number(CIN) is L23209GJ1982PLC005062 and registration number is 005062. Currently Company is involved in the business activities of Manufacture of refined petroleum products. Company’s Total Operating Revenue is Rs. 1539.56 Cr. and Equity Capital is Rs. 12.10 Cr. for the Year ended 31/03/2022.
INDUSTRYADDRESSCONTACT
LubricantsPlot No. 3303, GIDC Estate, Ankleshwar Gujarat 393002ankl@panamapetro.com
http://www.panamapetro.com
Management
NamePosition Held
Mr. Amirali E RayaniExecutive Chairman
Mr. Samir A RayaniManaging Director & CEO
Mr. Hussein V RayaniJoint Managing Director
Mr. Amin A RayaniExecutive Director
Mr. Kumar Raju NandimandalamInd. Non-Executive Director
Ms. Nargis Mirza KabaniInd. Non-Executive Director
Mr. Ashok MukhiInd. Non-Executive Director
Mr. Arvind ShahInd. Non-Executive Director

FAQ

What is the latest intrinsic value of Panama Petrochem Ltd?

The latest intrinsic value of Panama Petrochem Ltd as on 21 November 2024 is ₹354.28, which is 14.28% higher than the current market price of ₹310.00.

What is the Market Cap of Panama Petrochem Ltd?

The Market Cap of Panama Petrochem Ltd is 1,877 Cr..

What is the current Stock Price of Panama Petrochem Ltd as on 21 November 2024?

The current stock price of Panama Petrochem Ltd as on 21 November 2024 is ₹310.

What is the High / Low of Panama Petrochem Ltd stocks in FY 2024?

In FY 2024, the High / Low of Panama Petrochem Ltd stocks is 452/291.

What is the Stock P/E of Panama Petrochem Ltd?

The Stock P/E of Panama Petrochem Ltd is 9.55.

What is the Book Value of Panama Petrochem Ltd?

The Book Value of Panama Petrochem Ltd is 194.

What is the Dividend Yield of Panama Petrochem Ltd?

The Dividend Yield of Panama Petrochem Ltd is 2.26 %.

What is the ROCE of Panama Petrochem Ltd?

The ROCE of Panama Petrochem Ltd is 24.5 %.

What is the ROE of Panama Petrochem Ltd?

The ROE of Panama Petrochem Ltd is 18.7 %.

What is the Face Value of Panama Petrochem Ltd?

The Face Value of Panama Petrochem Ltd is 2.00.

About the Author

Author Avatar
Getaka

Getaka, CFA, a financial analyst with 15 years of experience in the industry. Getaka holds an MBA degree and the Chartered Financial Analyst designation, demonstrating his profound understanding of financial analysis and investment management. Throughout his career, he has conducted numerous financial analyses and due diligence processes for companies in the industry, and has a strong track record of identifying key trends and opportunities. He leverages his expertise to deliver a thorough financial analysis of a company, encompassing its financial performance, key ratios, future prospects, and risks. Getaka is committed to providing accurate, reliable, and trustworthy information to help readers make informed decisions about their finances and investments.

Disclaimer: This article is for informational purposes only and should not be construed as financial advice. The author is not a SEBI registered financial advisor and does not have any vested interest in Panama Petrochem Ltd. Investors are advised to conduct their own due diligence and consult with a financial professional before making any investment decisions. The information provided in this article is based on publicly available data and the author's analysis, but it may not be comprehensive or up-to-date. The author and getaka.co.in are not responsible for any errors or omissions in the content. This article is not intended to promote any particular investment strategy or recommendation, and readers should consult with their own financial advisors before making any investment decisions. Data Source: NSE