NSEI:PANAMAPET

Stock Analysis Report

Executive Summary

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

Snowflake

Fundamentals

Adequate balance sheet and fair value.

Share Price & News

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


Latest Share Price and Events


Market Performance


7 Day Return

-1.4%

PANAMAPET

1.2%

IN Chemicals

1.4%

IN Market


1 Year Return

-39.6%

PANAMAPET

14.4%

IN Chemicals

2.3%

IN Market

Return vs Industry: PANAMAPET underperformed the Indian Chemicals industry which returned 14.4% over the past year.

Return vs Market: PANAMAPET underperformed the Indian Market which returned 2.3% over the past year.


Shareholder returns

PANAMAPETIndustryMarket
7 Day-1.4%1.2%1.4%
30 Day-3.9%6.0%2.7%
90 Day-19.3%8.0%-1.4%
1 Year-38.4%-39.6%15.7%14.4%4.3%2.3%
3 Year35.9%31.6%34.0%29.8%20.9%14.9%
5 Year76.5%65.0%125.1%112.3%41.2%28.2%

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?

8.85x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Undervalued: PANAMAPET (₹71.05) is trading above our estimate of fair value (₹12.27)

Significantly Undervalued: PANAMAPET is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: PANAMAPET is good value based on its PE Ratio (8.9x) compared to the Chemicals industry average (10.5x).

PE vs Market: PANAMAPET is good value based on its PE Ratio (8.9x) compared to the Indian market (13x).


Price to Earnings Growth Ratio

Low 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 (1.1x) compared to the IN Chemicals industry average (1.1x).


Next Steps

Future Growth

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

11.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: PANAMAPET's forecast earnings growth (11% per year) is above the savings rate (7.6%).

Earnings vs Market: PANAMAPET's earnings (11% per year) are forecast to grow slower than the Indian market (18.1% per year).

High Growth Earnings: PANAMAPET's earnings are forecast to grow, but not significantly.

Revenue vs Market: Insufficient data to determine if PANAMAPET's revenue is forecast to grow faster than the Indian market.

High Growth Revenue: Insufficient data to determine if PANAMAPET's revenue is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: Insufficient data to determine if PANAMAPET's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Panama Petrochem performed over the past 5 years?

23.5%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: PANAMAPET's earnings have grown significantly by 23.5% 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 (-13.6%) over the past year, making it difficult to compare to the Chemicals industry average (9.9%).


Return on Equity

High ROE: PANAMAPET's Return on Equity (11.9%) is considered low.


Return on Assets

ROA vs Industry: PANAMAPET's Return on Assets is below or equal to the Chemicals industry average last year.


Return on Capital Employed

ROCE Improving: PANAMAPET has improved its Return on Capital Employed over the past 3 years.


Next Steps

Financial Health

How is Panama Petrochem's financial position?


Financial Position Analysis

Short Term Liabilities: PANAMAPET's short term assets (₹7.4B) exceeds its short term liabilities (₹5.0B)

Long Term Liabilities: PANAMAPET's short term assets (7.4B) exceeds its long term liabilities (97.5M)


Debt to Equity History and Analysis

Debt Level: PANAMAPET's debt to equity ratio (38.6%) is considered satisfactory

Reducing Debt: PANAMAPET's debt to equity ratio has increased from 7.2% to 38.6% over the past 5 years.

Debt Coverage: PANAMAPET's operating cash flow is negative, therefore debt is not well covered.

Interest Coverage: PANAMAPET's interest payments on its debt are well covered by EBIT (3.5x coverage).


Balance Sheet

Inventory Level: PANAMAPET has a high level of physical assets or inventory.

Debt Coverage by Assets: PANAMAPET's debt is covered by short term assets (assets are 4.641420x debt).


Next Steps

Dividend

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

1.67%

Current Dividend Yield


Dividend Yield vs Market

company1.7%marketbottom25%0.6%markettop25%2.5%industryaverage0.9%forecastin3Yearsn/a

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: PANAMAPET's dividend (1.67%) is higher than the bottom 25% of dividend payers in the Indian market (0.61%).

High Dividend: PANAMAPET's dividend (1.67%) is low compared to the top 25% of dividend payers in the Indian market (2.51%).

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 low payout ratio (14.8%), PANAMAPET's dividend payments are thoroughly 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

What is the CEO of Panama Petrochem's salary, the management and board of directors tenure and is there insider trading?

3.6yrs

Average management tenure


CEO

Amin Rayani (47yo)

10.3yrs

Tenure

₹3,420,000

Compensation

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


CEO Compensation Analysis

Compensation vs. Market: Amin's total compensation ($USD47.89K) is too low to compare against companies of similar size in the Indian market ($USD27.28K).

Compensation vs Earnings: Amin's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.


Management Age and Tenure

3.6yrs

Average Tenure

45yo

Average Age

Experienced Management: PANAMAPET's management team is considered experienced (3.6 years average tenure).


Board Age and Tenure

12.1yrs

Average Tenure

56.5yo

Average Age

Experienced Board: PANAMAPET's board of directors are seasoned and experienced ( 12.1 years average tenure).


Insider Trading

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


Recent Insider Transactions

Buy₹7,218,45523 Sep 19
Ittefaq Ice & Cold Storage Co. Pvt. Ltd.
EntityCompany
Shares98,892
Max Price₹72.99
Buy₹3,137,14011 Sep 19
Ittefaq Ice & Cold Storage Co. Pvt. Ltd.
EntityCompany
Shares46,823
Max Price₹67.00
Buy₹5,695,77909 Sep 19
Ittefaq Ice & Cold Storage Co. Pvt. Ltd.
EntityCompany
Shares84,852
Max Price₹67.13
Buy₹2,495,37605 Sep 19
Ittefaq Ice & Cold Storage Co. Pvt. Ltd.
EntityCompany
Shares36,697
Max Price₹68.00
Buy₹1,427,22504 Sep 19
Vazirali Rayani
EntityIndividual
Shares20,303
Max Price₹70.30
Buy₹1,979,87203 Sep 19
Ittefaq Ice & Cold Storage Co. Pvt. Ltd.
EntityCompany
Shares27,924
Max Price₹70.90
Buy₹1,192,82428 Aug 19
Ittefaq Ice & Cold Storage Co. Pvt. Ltd.
EntityCompany
Shares16,567
Max Price₹72.00
Buy₹1,296,05128 Aug 19
Akbarali Rayani
EntityIndividual
Shares18,332
Max Price₹70.70
Buy₹1,494,63528 Aug 19
Amin Rayani
EntityIndividual
Role
Chief Executive Officer
MD, CEO & Executive Director
Shares21,110
Max Price₹70.80
Buy₹1,386,68322 Aug 19
Ittefaq Ice & Cold Storage Co. Pvt. Ltd.
EntityCompany
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Max Price₹69.50
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Ittefaq Ice & Cold Storage Co. Pvt. Ltd.
EntityCompany
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Max Price₹97.98
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Ittefaq Ice & Cold Storage Co. Pvt. Ltd.
EntityCompany
Shares51,401
Max Price₹98.96
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Ittefaq Ice & Cold Storage Co. Pvt. Ltd.
EntityCompany
Shares50,270
Max Price₹101.38
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Ittefaq Ice & Cold Storage Co. Pvt. Ltd.
EntityCompany
Shares53,406
Max Price₹101.55
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Ittefaq Ice & Cold Storage Co. Pvt. Ltd.
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Max Price₹102.00
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Ittefaq Ice & Cold Storage Co. Pvt. Ltd.
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Ittefaq Ice & Cold Storage Co. Pvt. Ltd.
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Shares38,078
Max Price₹107.11
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Ittefaq Ice & Cold Storage Co. Pvt. Ltd.
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Max Price₹129.87
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Ittefaq Ice & Cold Storage Co. Pvt. Ltd.
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Ittefaq Ice & Cold Storage Co. Pvt. Ltd.
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Ittefaq Ice & Cold Storage Co. Pvt. Ltd.
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Shares10,549
Max Price₹101.83

Ownership Breakdown


Management Team

  • Amirali Rayani (75yo)

    Executive Chairman

    • Tenure: 10.3yrs
    • Compensation: ₹3.60m
  • Amin Rayani (47yo)

    MD, CEO & Executive Director

    • Tenure: 10.3yrs
    • Compensation: ₹3.42m
  • Samir Rayani (44yo)

    Director of Administration & Whole-Time Director

    • Tenure: 18.8yrs
    • Compensation: ₹3.30m
  • Pradip Nikam (57yo)

    Vice President

    • Tenure: 0yrs
    • Compensation: ₹1.72m
  • Hussein Rayani (41yo)

    Joint MD & Executive Director

    • Tenure: 4yrs
    • Compensation: ₹3.30m
  • Gayatri Sharma (34yo)

    Compliance Officer & Company Secretary

    • Tenure: 0yrs
    • Compensation: ₹2.90m
  • Pramod Maheshwari (42yo)

    Chief Financial Officer

    • Tenure: 0yrs
    • Compensation: ₹3.90m
  • Nilima Kheraj

    Director of HR

    • Tenure: 3.6yrs
  • Iqbal Rayani

    Director of Marketing

    • Tenure: 3.6yrs
  • Santosh Kamath (46yo)

    National Sales Manager

    • Tenure: 0yrs

Board Members

  • Amirali Rayani (75yo)

    Executive Chairman

    • Tenure: 10.3yrs
    • Compensation: ₹3.60m
  • Madan Mohan Jain (75yo)

    Independent Non-Executive Director

    • Tenure: 13.8yrs
    • Compensation: ₹200.00k
  • Amin Rayani (47yo)

    MD, CEO & Executive Director

    • Tenure: 10.3yrs
    • Compensation: ₹3.42m
  • Samir Rayani (44yo)

    Director of Administration & Whole-Time Director

    • Tenure: 18.8yrs
    • Compensation: ₹3.30m
  • Mukesh Mehta (61yo)

    Independent Non-Executive Director

    • Tenure: 16.6yrs
    • Compensation: ₹230.00k
  • Hussein Rayani (41yo)

    Joint MD & Executive Director

    • Tenure: 4yrs
    • Compensation: ₹3.30m
  • Nargis Kabani (67yo)

    Independent Non-Executive Director

    • Tenure: 4.7yrs
    • Compensation: ₹150.00k
  • Kumar Nandimandalam (52yo)

    Independent Non Executive Director

    • Tenure: 1.2yrs
    • Compensation: ₹85.00k

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: ₹4.268b
  • 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)SPONS GDRLUUSDJul 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 Analysis2019/10/17 12:51
End of Day Share Price2019/10/17 00:00
Earnings2019/06/30
Annual Earnings2019/03/31


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.