Stock Analysis: Panama Petrochem LtdOverview : Panama Petrochem Limited manufactures and exports various Petroleum specialties. Panama Petrochem is one of the leading manufacturers & exporters of ~80 variants of petroleum specialty products like Panoil (liquid paraffin oils, petroleum jelly, ink oils, antistatic coning oil, rubber process oils, transformer oils, cable filling compounds), Wax (paraffin wax, Slack Wax, Micro Wax),
Revenue Split : White oil (24%), Ink oil (21%), Rubber oil (19%), Textile oil (19%), Drilling oil (10%), Transformer and Automotive lubricant (7%)
Client: Hubergroup India Pvt. Ltd (for Inks), Reliance Industries Ltd, Dabur (for cosmetics), ATC Tyre (for rubber oils), etc.
Manufacturing Facilities : The company has 4 manufacturing units one each in Ankleshwar (Gujarat), Daman (Union Territory), Taloja (Maharashtra), and Dahej (Gujarat). It also has a manufacturing facility in the UAE.
Stock Fundamentals :
Market Cap: ₹ 2,359 Cr.; Stock P/E: 11.8 (Ind. P/E: 19.81)
Book Value: ₹ 182; Dividend Yield: 1.79 %
ROCE: 24.5 %; ROE: 18.7 %
Strengths :
The company has almost no debt.
The company's return on equity (ROE) history is favorable: ROE for 3 Years: 25.7%
The business has consistently paid out a strong dividend of 21.2%.
Weakness : Over the last three years, promoter holding has declined: -10.2%
Technical Analysis
Support Levels: 375, 351, 321
Resistance Levels: 410, 416, 426, 447
The stock has fallen from 447 levels to 392 levels.
20 EMA has just fallen behind 50 EMA (Bearish Trend)
It has strong support around 375 levels.
