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Last Updated on: 27 February, 2024|Author: Getaka | Social: X Twitter Profile

Fundamental Analysis of Panama Petrochem Ltd

About the Company - Panama Petrochem Ltd

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
Chemicals - Speciality - OthersPlot No. 3303, GIDC Estate, Ankleshwar Gujarat 393002ankl@panamapetro.com
http://www.panamapetro.com
Management
NamePosition Held
Mr. Amirali E RayaniExecutive Chairman
Mr. Hussein V RayaniJoint Managing Director
Mr. Amin A RayaniManaging Director & CEO
Mr. Samir A RayaniExecutive Director
Ms. Nargis Mirza KabaniIndependent Director
Mr. Madan Mohan JainIndependent Director
Mr. Mukesh MehtaIndependent Director
Mr. Kumar Raju NandimandalamIndependent Director

Panama Petrochem Ltd. Share Price Update

Share PriceValue
Today₹376.20
Previous Day₹358.60

Basic Stock Data of Panama Petrochem Ltd

Market Cap 2,168 Cr.
Current Price 358
High / Low371/268
Stock P/E11.7
Book Value 168
Dividend Yield2.23 %
ROCE34.9 %
ROE27.1 %
Face Value 2.00

Data Source: screener.in

Competitors of Panama Petrochem Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
Aarti Surfactants Ltd 518 Cr. 684854/41724.3 2090.00 %10.6 %8.36 % 10.0
Mangalam Global Enterprise Ltd 314 Cr. 21.828.2/11.519.4 8.630.09 %10.8 %13.8 % 2.00
Vadivarhe Speciality Chemicals Ltd 48.4 Cr. 37.955.0/27.6 2.090.00 %7.61 %13.5 % 10.0
Chembond Chemicals Ltd 702 Cr. 522640/23014.7 2550.59 %10.9 %7.89 % 5.00
Omkar Speciality Chemicals Ltd 17.4 Cr. 8.4512.4/6.80 83.00.00 %10.5 %% 10.0
Industry Average319.96 Cr254.8311.68111.540.14%10.08%8.71%7.40

Panama Petrochem Ltd Quarterly Results

MonthSep 2020Dec 2020Mar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023
Sales325420542551563509508552614573510530574
Expenses298346461475481442439465525505444471513
Operating Profit27748177826869868968665861
OPM %8%18%15%14%15%13%14%16%14%12%13%11%11%
Other Income1311113111354
Interest2222221233444
Depreciation2222222222222
Profit before tax24737874796569838564635758
Tax %24%27%23%22%21%17%18%22%21%21%19%19%20%
Net Profit18536058625456656750514647
EPS in Rs3.058.789.929.6010.248.959.2910.6811.158.298.407.597.76

Panama Petrochem Ltd Quarterly Chart

Panama Petrochem Ltd Profit & Loss

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023TTM
Sales5846356358057528341,3261,2691,0031,4472,1322,2492,187
Expenses5416146047737047591,2191,1699501,2571,8361,9401,933
Operating Profit44203132487510810053190296309254
OPM %7%3%5%4%6%9%8%8%5%13%14%14%12%
Other Income53112423466713
Interest886889142517971215
Depreciation12235556788910
Profit before tax391323223766907232180286295242
Tax %22%8%22%18%31%33%32%27%10%25%20%21%
Net Profit311218182544615229135230233194
EPS in Rs4.751.842.922.934.167.2410.088.584.7622.3738.0838.5132.04
Dividend Payout %14%29%26%46%8%9%12%14%25%9%21%21%

Panama Petrochem Ltd Profit & Loss Yearly Chart

Panama Petrochem Ltd Growth

Compounded Sales Growth
10 Years:13%
5 Years:11%
3 Years:31%
TTM:-5%
Compounded Profit Growth
10 Years:35%
5 Years:31%
3 Years:101%
TTM:-22%
Stock Price CAGR
10 Years:33%
5 Years:28%
3 Years:31%
1 Year:12%
Return on Equity
10 Years:20%
5 Years:24%
3 Years:30%
Last Year:27%

Panama Petrochem Ltd Balance Sheet

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Sep 2023
Equity Capital99888812121212121212
Reserves2162232312412643053594024215497569401,005
Borrowings1022174257334516051663001
Other Liabilities257168205207162323559346273366455282259
Total Liabilities4924224614984926699769197579931,2531,2351,277
Fixed Assets587377119123125134156173185230248232
CWIP36400041411172251322
Investments0000210000544
Other Assets4303433453793665388287525677851,0139701,020
Total Assets4924224614984926699769197579931,2531,2351,277

Panama Petrochem Ltd Reserves and Borrowings Chart

Panama Petrochem Ltd Cash Flow

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Cash from Operating Activity 89-8430-12185934-7817956170210
Cash from Investing Activity -220-36-13-12-21-14-22-20-15-111-79
Cash from Financing Activity 491-2311-2-36-681-136-1-67-96
Net Cash Flow117-83-29-144214-192340-935

Panama Petrochem Ltd Financial Efficiency Indicators

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Debtor Days656896797580779091825457
Inventory Days1078284869316114513411112210867
Days Payable17910312397851641731101121109454
Cash Conversion Cycle-747586882774911490946870
Working Capital Days569677189806311295897377
ROCE %9%12%11%15%22%27%20%9%34%41%35%

Panama Petrochem Ltd Financial Efficiency Indicators Chart

Panama Petrochem Ltd Share Holding Pattern

MonthDec 2020Mar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023
Promoters73.34%71.70%71.95%72.13%71.11%71.11%71.11%70.37%70.37%69.87%69.87%69.25%
FIIs1.61%1.82%2.24%3.35%3.89%3.80%3.69%2.74%3.25%3.20%3.45%5.83%
DIIs0.00%0.00%0.02%0.02%0.02%0.30%0.17%0.00%0.00%0.00%0.00%0.04%
Public25.05%26.47%25.79%24.50%24.97%24.79%25.03%26.89%26.39%26.93%26.69%24.89%
No. of Shareholders13,56613,45319,27025,70625,48730,09326,84226,00225,06824,14824,29126,456

Panama Petrochem Ltd Shareholding Pattern Chart

No. of Panama Petrochem Ltd Shareholders

This stock is not held by any mutual fund

Panama Petrochem Ltd ROCE Trend

Panama Petrochem Ltd EPS Trend

Panama Petrochem Ltd Key Financial Ratios

MonthMar 23Mar 22Mar 21Mar 20Mar 19
FaceValue2.002.002.002.002.00
Basic EPS (Rs.)38.5138.0822.374.768.58
Diluted EPS (Rs.)38.5138.0822.374.768.58
Cash EPS (Rs.)40.0739.4723.635.969.56
Book Value[Excl.RevalReserv]/Share (Rs.)157.37126.9992.7371.5868.40
Book Value[Incl.RevalReserv]/Share (Rs.)157.37126.9992.7371.5868.40
Revenue From Operations / Share (Rs.)371.69352.49239.19165.76209.83
PBDIT / Share (Rs.)52.1649.8832.419.4016.97
PBIT / Share (Rs.)50.6048.4931.158.2015.99
PBT / Share (Rs.)48.6947.3229.675.3111.83
Net Profit / Share (Rs.)38.5138.0822.374.768.58
NP After MI And SOA / Share (Rs.)38.5138.0822.374.768.58
PBDIT Margin (%)14.0314.1413.555.668.08
PBIT Margin (%)13.6113.7513.024.947.61
PBT Margin (%)13.0913.4212.403.205.63
Net Profit Margin (%)10.3610.809.352.864.08
NP After MI And SOA Margin (%)10.3610.809.352.864.08
Return on Networth / Equity (%)24.4629.9824.126.6412.53
Return on Capital Employeed (%)31.7837.7332.9811.2222.83
Return On Assets (%)18.8618.3813.633.805.64
Total Debt / Equity (X)0.000.030.110.110.38
Asset Turnover Ratio (%)1.491.481.531.061.23
Current Ratio (X)3.562.131.861.801.50
Quick Ratio (X)2.371.100.990.980.72
Inventory Turnover Ratio (X)3.402.833.492.412.37
Dividend Payout Ratio (NP) (%)23.3610.500.0025.2213.99
Dividend Payout Ratio (CP) (%)22.4510.130.0020.1412.55
Earning Retention Ratio (%)76.6489.500.0074.7886.01
Cash Earning Retention Ratio (%)77.5589.870.0079.8687.45
Interest Coverage Ratio (X)27.2742.7521.923.264.08
Interest Coverage Ratio (Post Tax) (X)21.1433.6416.132.653.06
Enterprise Value (Cr.)1541.821494.48870.27190.59930.30
EV / Net Operating Revenue (X)0.680.700.600.190.73
EV / EBITDA (X)4.894.954.443.359.06
MarketCap / Net Operating Revenue (X)0.780.750.600.180.61
Retention Ratios (%)76.6389.490.0074.7786.00
Price / BV (X)1.852.091.570.411.90
Price / Net Operating Revenue (X)0.780.750.600.180.61
EarningsYield0.130.140.150.150.06

Panama Petrochem Ltd Profitability Ratios (%)

Panama Petrochem Ltd Liquidity Ratios

Panama Petrochem Ltd Liquidity Ratios (%)

Panama Petrochem Ltd Interest Coverage Ratios (%)

Panama Petrochem Ltd Valuation Ratios

Fair Value / Intrinsic Value of Panama Petrochem Ltd

Fair Value: ₹544.56

The stock is undervalued by 52.11% compared to the current price ₹358

*Investments are subject to market risks

Strength and Weakness of Apar Industries Ltd

StrengthWeakness
  1. The stock has a high average ROCE of 19.58%, which is a positive sign.
  2. The company has higher reserves (454.77 cr) compared to borrowings (41.08 cr), indicating strong financial stability.
  3. The company has shown consistent growth in sales (327.31 cr) and profit (107.46 cr) over the years.
  1. The stock is trading at a high valuation with an average P/B ratio of 30.89 and average Dividend Yield of 10.59%.
  2. The stock has a high average Working Capital Days of 74.17, which may not be favorable.
  3. The stock has a high average Cash Conversion Cycle of 67.50, which may not be favorable.

Should I Buy Panama Petrochem Ltd?

  • Based on the analysis of various financial indicators, it may be worth considering investment in Panama Petrochem Ltd:
    1. Net Profit Margin: 10.36% (Higher values are generally favorable)
      • 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: 31.78% (Industry Average ROCE: 14.24%)
      • 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. Interest Coverage Ratio (Post Tax): 21.14 (Higher values, preferably > 2, are recommended)
      • 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.
    4. Quick Ratio: 2.37 (Higher values, preferably > 1, are recommended)
      • 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.
    5. ✓ Stock P/E: 11.6 (Industry average Stock P/E: 22.9)
      • 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.
    6. ✓ Total Debt / Equity: 0.00 (Lower values, preferably < 1, are preferred)
      • 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.
    While these metrics suggest potential opportunity, it's essential to conduct thorough research or seek advice from financial experts before making any investment decisions.

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