NSEI:PANAMAPET

Stock Analysis Report

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Executive Summary

Panama Petrochem Limited manufactures and sells specialty petroleum products in India. More Details


Snowflake Analysis

Undervalued with excellent balance sheet and pays a dividend.

Share Price & News

How has Panama Petrochem's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: PANAMAPET has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

2.3%

PANAMAPET

1.7%

IN Chemicals

1.4%

IN Market


1 Year Return

-21.2%

PANAMAPET

16.7%

IN Chemicals

2.2%

IN Market

Return vs Industry: PANAMAPET underperformed the Indian Chemicals industry which returned 16.7% over the past year.

Return vs Market: PANAMAPET underperformed the Indian Market which returned 2.2% over the past year.


Shareholder returns

PANAMAPETIndustryMarket
7 Day2.3%1.7%1.4%
30 Day-1.1%3.7%5.6%
90 Day24.3%13.3%8.5%
1 Year-19.5%-21.2%19.3%16.7%4.0%2.2%
3 Year-66.9%-68.4%36.5%28.1%-0.5%-5.3%
5 Year37.1%29.0%137.3%117.7%41.6%31.1%

Price Volatility Vs. Market

How volatile is Panama Petrochem's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Panama Petrochem undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: PANAMAPET (₹53.7) is trading below our estimate of fair value (₹366.94)

Significantly Below Fair Value: PANAMAPET is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: PANAMAPET is good value based on its PE Ratio (12.7x) compared to the IN Chemicals industry average (15.3x).

PE vs Market: PANAMAPET is good value based on its PE Ratio (12.7x) compared to the Indian market (16.5x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate PANAMAPET's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: PANAMAPET is good value based on its PB Ratio (0.7x) compared to the IN Chemicals industry average (1.2x).


Next Steps

Future Growth

How is Panama Petrochem forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

22.4%

Forecasted Materials industry annual growth in earnings


In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as Panama Petrochem has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


Next Steps

Past Performance

How has Panama Petrochem performed over the past 5 years?

9.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: PANAMAPET has high quality earnings.

Growing Profit Margin: PANAMAPET's current net profit margins (2.8%) are lower than last year (4%).


Past Earnings Growth Analysis

Earnings Trend: PANAMAPET's earnings have grown by 9.4% per year over the past 5 years.

Accelerating Growth: PANAMAPET's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: PANAMAPET had negative earnings growth (-49.3%) over the past year, making it difficult to compare to the Chemicals industry average (-1.9%).


Return on Equity

High ROE: PANAMAPET's Return on Equity (5.7%) is considered low.


Next Steps

Financial Health

How is Panama Petrochem's financial position?


Financial Position Analysis

Short Term Liabilities: PANAMAPET's short term assets (₹5.7B) exceed its short term liabilities (₹3.2B).

Long Term Liabilities: PANAMAPET's short term assets (₹5.7B) exceed its long term liabilities (₹88.4M).


Debt to Equity History and Analysis

Debt Level: PANAMAPET's debt to equity ratio (11.5%) is considered satisfactory.

Reducing Debt: PANAMAPET's debt to equity ratio has reduced from 17% to 11.5% over the past 5 years.

Debt Coverage: PANAMAPET's debt is well covered by operating cash flow (359.8%).

Interest Coverage: PANAMAPET's interest payments on its debt are not well covered by EBIT (2.8x coverage).


Balance Sheet


Next Steps

Dividend

What is Panama Petrochem current dividend yield, its reliability and sustainability?

2.29%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: PANAMAPET's dividend (2.29%) is higher than the bottom 25% of dividend payers in the Indian market (0.55%).

High Dividend: PANAMAPET's dividend (2.29%) is in the top 25% of dividend payers in the Indian market (2.28%)


Stability and Growth of Payments

Stable Dividend: PANAMAPET's dividend payments have been volatile in the past 10 years.

Growing Dividend: PANAMAPET's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (29.2%), PANAMAPET's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

4.6yrs

Average management tenure


CEO

Amin Rayani (48 yo)

11.33yrs

Tenure

₹3,420,000

Compensation

Mr. Amin Amirali Rayani has been the Managing Director and Chief Executive Officer of Panama Petrochem Limited since June 29, 2009 and has been its Executive Director since joining on December 1, 2000. He ...


CEO Compensation Analysis

Compensation vs Market: Amin's total compensation ($USD46.33K) is about average for companies of similar size in the Indian market ($USD54.90K).

Compensation vs Earnings: Amin's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Amirali Rayani
Executive Chairman 11.33yrs₹3.60m5.57%
₹ 181.3m
Amin Rayani
MD, CEO & Executive Director 11.33yrs₹3.42m10.37%
₹ 337.6m
Pramod Maheshwari
Chief Financial Officerno data₹4.14mno data
Samir Rayani
Director of Administration & Whole-Time Director19.83yrs₹3.30m2.71%
₹ 88.2m
Gayatri Sharma
Company Secretary & Compliance Officerno data₹3.08mno data
Hussein Rayani
Joint MD & Executive Director5yrs₹3.30m1.37%
₹ 44.7m
Iqbal Rayani
Director of Marketing4.58yrsno datano data
Nilima Kheraj
Director of HR4.58yrsno data0.0050%
₹ 161.4k
Pradip Nikam
Vice Presidentno data₹1.72mno data

4.6yrs

Average Tenure

45yo

Average Age

Experienced Management: PANAMAPET's management team is considered experienced (4.6 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Amirali Rayani
Executive Chairman 11.33yrs₹3.60m5.57%
₹ 181.3m
Amin Rayani
MD, CEO & Executive Director 11.33yrs₹3.42m10.37%
₹ 337.6m
Samir Rayani
Director of Administration & Whole-Time Director19.83yrs₹3.30m2.71%
₹ 88.2m
Hussein Rayani
Joint MD & Executive Director5yrs₹3.30m1.37%
₹ 44.7m
Madan Mohan Jain
Independent Non-Executive Director14.83yrs₹210.00kno data
Mukesh Mehta
Independent Non-Executive Director17.58yrs₹230.00kno data
Nargis Kabani
Independent Non-Executive Director5.67yrs₹80.00kno data
Kumar Nandimandalam
Independent Non Executive Director2.17yrs₹110.00kno data

13.1yrs

Average Tenure

57.5yo

Average Age

Experienced Board: PANAMAPET's board of directors are seasoned and experienced ( 13.1 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: PANAMAPET insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Panama Petrochem Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Panama Petrochem Limited
  • Ticker: PANAMAPET
  • Exchange: NSEI
  • Founded: 1975
  • Industry: Commodity Chemicals
  • Sector: Materials
  • Market Cap: ₹3.255b
  • Shares outstanding: 60.49m
  • Website: https://www.panamapetro.com

Location

  • Panama Petrochem Limited
  • 401, Aza House
  • 24, Turner Road
  • Mumbai
  • Maharashtra
  • 400050
  • India

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
524820BSE (Mumbai Stock Exchange)YesEquity SharesININRJan 2005
PANAMAPETNSEI (National Stock Exchange of India)YesEquity SharesININRJan 2005
PAPTRBDL (Bourse de Luxembourg)GDR EACH REPR 5 ORDLUUSDJul 2011

Biography

Panama Petrochem Limited manufactures and sells specialty petroleum products in India. The company offers white/liquid paraffin oil; petroleum jellies; transformer oil; ink and coating oils; rubber process ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/10/26 12:42
End of Day Share Price2020/10/23 00:00
Earnings2020/06/30
Annual Earnings2020/03/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.