Panama Petrochem is an Ankleshwar based manufacturer of specialty oil products promoted by Rayani family.Company having five
manufacturing units in India located at Ankleshwar, Daman, Dahej,Marol and Taloja .Its total capacity is 105000 MTPA for more than 80 products together.Recently
company started a subsidiary in UAE - Panol Industries RMC FZE. Petroleum
Jelly,Liquid Paraffins,Rubber Processing oil,Transformer oil,Cable
Jelly,Knitting oil ..etc are companies major products.These products are widely
used in industries like Cosmetics,Pharmaceuticals,Electrical,Cable
Manufacturing,Textiles..etc. Company selling
various branded products for these industries.Panama Petrochem tied up with
Germany based Lubcon Lubricant Consultants for developing new oil based
products.Crude derivatives are the main raw materials for the company and the
current stability in crude price will
help the company to protect its margins.Even at the time of higher crude
prices,company successfully hiked its product prices to protect its margins
to a certain extent.Now, many countries are exploring opportunities to start/increase shale gas/oil production.This efforts may act as a check for sharp spike in crude prices going forward.
For the FY 2012 company reported a Sales of Rs.583 Cr and a net profit of Rs.31 Cr .On a small equity of Rs.8 Cr FY 12 EPS was Rs.39/- . Company is very liberal in dividend distribution too which paid 50 % each in past three years. It is almost a debt free company with a book value around Rs.260 .After hitting a 52 week high of Rs.250, now this stock is trading around at its 52 week low price. Considering promoters’ experience in this industry ,expansion plans ,stability in raw material prices ..etc recommending a BUY @ CMP Rs.135/-
For the FY 2012 company reported a Sales of Rs.583 Cr and a net profit of Rs.31 Cr .On a small equity of Rs.8 Cr FY 12 EPS was Rs.39/- . Company is very liberal in dividend distribution too which paid 50 % each in past three years. It is almost a debt free company with a book value around Rs.260 .After hitting a 52 week high of Rs.250, now this stock is trading around at its 52 week low price. Considering promoters’ experience in this industry ,expansion plans ,stability in raw material prices ..etc recommending a BUY @ CMP Rs.135/-
Link to company website HERE
Link to latest Annual Report HERE
Hi VP
ReplyDeletethanks a lot for expressing a positive opinion on a manufacturing stock after a long time..
Robin
Hello VP Sir,
ReplyDeleteI have been investing in MNC's like Ingersoll Rand, Yuken India, Alstom Projects. What risks you think investing in MNC's like these have?
Two special risks are, possibility of floating direct subsidiaries of parent company and doing futuristic business through that subsidiary and another point is a possibility for higher royalty payment for using technology ,brand name ..etc.These are main risk not specific to the mentioned companies but applicable to all MNC's .
DeleteThanks for review. What is your opinion on Andhra Petrochemicals?
ReplyDeleteNot tracking it
DeleteSir, wat are your thoughts on
ReplyDeletesupreme industries ltd. is good to invest at current level.....
Company is not bad ,but not suggesting an entry at current price.Wait for dip ..
DeleteThank you Sir :)
DeleteI have jyothi labs.how abt its feature?
ReplyDeleteReasonably good , should control its debts
DeleteHI Valuepick,
ReplyDeleteWhat is your thoughts on Selan Oil?
On the fundamental side they may just get approvals for Drilling from DGH at any time and Dolly Khanna is increasing her stake in selan every quater on quarter.
Regards,
Vikas Karunakaran
No change in previous opinion.
DeleteWhat's your view on sintex Sir.
ReplyDeleteNot closely tracking
Deletecould you please suggest some consumption stock,can i buy vadilal at cpm.please answer both ques.
ReplyDeletethanking you
astha
Vadilal Recommended around Rs.105 ( see the below link) which is currently trading around Rs.224 .At CMP it is a HOLD for me.
Deletehttp://value-picks.blogspot.in/2012/06/vadilal-industries-ltd-buy.html
Dear sir,
ReplyDeleteEntering into mangalam cement, vatech wabag, & granules at current cmp, your advice please sir..
I don't think anything serious negatives happened to these companies post recommendation.
DeleteThanks sir for a good pic again :)
ReplyDeleteWhat is ur view on Goa carbon now?? should we re-enter?
Regards,
Kinshuk
Many good companies are available at attractive valuation mainly because of recessionary situation of that particular industry and not because of any specific issue to that particular company.In such a case investors should show enough patience till that sector came out of woods .Considering the challenging business environment prevailing in India ,we can't assume this will happen in short period like 3 or 6 months.What I mean is ,even a particular company is good we may get appreciation only when that sector gets a re rating.
Deleteok , got it sir. Time horizon should be real long (5 years+) Thanks again
DeleteSir,
ReplyDeleteDo you track technocraft industries? What's your view on this. Can this be considered to buy at CMP?
Regards,
Nadim
Not tracking it
DeleteHi Sir, also can you tell about this new IPO - Esteem Bio Organic Food processing Ltd...is it worthy enough for participation?
ReplyDeleteThis same promoters came out with another IPO last month for Eco Friendly Food processing park Ltd which is also in the same business .When there is some improvement in market sentiment ,they are trying to collect money .I don't know why there is two companies for similar purpose and two IPO within two months.I don't like these type promoters.
ReplyDeleteDear Sir,
ReplyDeleteWant to know your view on Dish TV and IRB infra for long term.
Thanks.
Not following both
DeleteSir,
ReplyDeleteI am in dilemma regarding investment between MF and stocks. Earlier I used to invest in MF in SIPs, but now that I have started in stocks myself, I am not sure what should I invest in MFs. Earlier I used to do sip of 14k p.m. and rest in FD etc, but now I have started investing stocks and money seems less to me when investing in stocks, what should I do ? Should I stop some of my SIPs and invest that money in stocks? I have already reduced my FD amount.
SIP in good mutual funds will always win. You have to do the at least 5 years or more
DeleteDear Mr Chandra
ReplyDeleteIt is not an easy question to answer. It depends on your capacity to take risk,time available for collecting information,expected return ..etc.
I have one small suggestion - never mix savings with investment .Everyone must keep some money for meeting emergencies irrespective of return from it.Whether breaking FD and investing that money in stock market is true or false depends on your over all financial positions and other liabilities which may arise in future.Anyway I will not support an idea to break entire FD and put that money in stocks ,especially at a time market ruling nearly its all time high levels. Opportunities are always in market but one should never driven by market sentiment. Never invest in stock market when we have money ,but invest when we have good opportunities to do that - means when valuations are attractive .Availability of time to learn more and patience are other major factors for success in stock market.
Three claps for your most appropriate and realistic reply which has awakened me.-Vihwanath
DeleteThank you so much sir :)
DeleteI try to stick to what you say, because it looks right to me as well ... The feeling of left alone in equity forces me to put more money, but what you said is v.correct. Thanks for your valuable advice
hello sir
ReplyDeletewhat is your take on ifb industries at cmp
Hello Sir
ReplyDeleteThanks for your valuable suggestions.
Please comment on 5 stocks. All 5 are your earlier recommendations which are trading quite below then recommended price.
Mangalam Cement, KSB Pumps, Godawari Power and Ispat, Career Point (Recommended at IPO at around 300 INR. Today it is trading around 150 INR.)
Do you think, one should keep adding small amounts on dips.? Career point's valuations are quite attractive. Isnt it sir?
Another stock which I always ask is Rossell India. I didnt sell it even on 55. Today it is at 45. Still a hold for you sir..?
Thanks a lot:) Take Care.
Sir
ReplyDeleteyour view on la opala, i brought at CMP?
and also view on hanung toys?
Positive on La-opala for long term
Deletesir,
ReplyDeleteWhat do you think about zuari global and capital first?
Not tracking Zuari Global , One can consider buying Capital First in small lots.
Deletehi vp, any idea about GAEL?
ReplyDeleteSir,
ReplyDeletebetween Britannia and Agrotech Foods, which one would you prefer for a conservative investor and why?
For a conservative investor GSK Consumer is better than both of these.
DeleteHi VP Sir,
ReplyDeletewhat do you think about Motor and General Finance at this price?
Promoters are buying from market for the past many months.No idea if something is cooking ..
DeleteSir,
ReplyDeleteyour views on Orient Bell at current price?
I believe nothing has happened so far to change my views.
Deletesir,
ReplyDeleteyour stocks after recommendations are going down. any reasons?
I can only present my stock ideas and not to rigg prices too .If you feel so better to avoid acting on my suggestions.
DeleteYes sir,
DeleteImplemented what you mentioned as losses are more than I can take it.
Booking loss and exiting all the stocks now.
That's the best decision one can take when lacks conviction.
DeleteSir ur view on Jhs svenguard and Jai balaji at CMP ?
ReplyDeleteNegative on JHS Svenguard and not tracking Jai Balaji
DeleteWhats your present view on mangalam cement?
ReplyDeleteNo change.
Deletesir circuits opend in bambino agro even company having very good business prospects why it is showing lowerr circuits is there any reason behind this?
ReplyDeletethousands of selling orders is it going in oppsit direction
Correction is part of stock market.Appreciated more than 100 % in last three months.
DeleteSir if one wants to chose between mahindra finance and bajaj finance,then which one should one go for?
ReplyDeleteAditya
Both are good to buy in dip
Deletedear value
ReplyDelete(1)though i m a long term investor but frightened by crash in mangalam cement price. anything wrong?
(2)i want to buy Mastek from IT sector. consider ur opinion. plz give.
Yours Patidar
Not aware anything wrong for Mangalam Cement specifically.Whenever a foreign brokerage published a report saying that the Cement demand in near term may slow down due to cold weather condition in north , all cement cos corrected.Instead of running away ,investors stock take these type situations as an opportunity and look beyond few months.
Deletedear VP,
ReplyDeleteKindly update on Sabero, post results its been falling?
Your views on results?
regards
Please avoid repeating this ,already expressed my opinion post result.
Deletei think one new investir has asked all anonymous question. Hope god bless him
ReplyDeleteSir,
ReplyDeleteIs it the right time to enter into blue star ?the company has reported profit in this quarter still it fell.I have saved around 50 thousand and I want to invest in a medium risk counter to take care of my future responsibilties.
Veer singh
If you are not interested to take above average risk better to look into some blue chips on any dip.
DeleteHi Sir,
ReplyDeleteCan these be bought at current market price and do you think these can give decent return if investment is made for long time
1. Kalyani forge
2. Bajaj Hindustan
3. Shree renuka
4. Ion exchange
Regards,
Nadim
As you know, like the case of bank FD ,time period will not ensure higher return in stock market.Keep tracking the growth of Industry and specific company and then take decisions accordingly.If company is growing nothing wrong in holding the same for long term even the market mood is bad.
DeleteSir your views on aptech ??
ReplyDeleteThanks
Only attraction for Aptech is the holding of RJ ( If it is so ). Purely on business prospects I am not positive on this stock .There may be some upside possible if there is some stake selling news or so.I am negative on this stock and can't find any reason to stay invested.
DeleteHello VP Sir,
ReplyDeleteI have sent multiple mails but I guess you are answering way too many questions from different investors. What I wanted to know is with the current CMP, can I invest in Geometric, Canfin Homes and Jai Balaji? I am trying to focus for long term and hence I am targetting low CMP stocks. Please advice and hope to get a reply from you.
Thanks and Regards
Vijay.
Not strictly tracking any of these.Even your query not answered , messages about same cos answered for others ,so please avoid repetition to save time and effort.
DeleteYes Sir, would try not to repeat the questions. Thanks!!
Deletesir,
ReplyDeletewhat is your view on your odl pick PIONEER INVESTCORP (PINK).Is it right time to buy?
No need of hurry.
DeleteSir are you tracking Manali petrochem and if so what are your views
ReplyDeleteThanks
Not tracking Manali Petro
Deletewhat is your view on MRF and is optocircuit is value buy at current level when compared to other pharma stock
ReplyDeleteSir plz share ur view on ashapura mine.ur replay is very importent for me
ReplyDeleteRegards
Jasim
Positive on Ashapura for long term
DeleteDoes you old recommendation Interlink petroleum deserve a relook now, pertaining to new developments
ReplyDeletethe promoter of the company changes every now and then.if the company's promoters dont have trust in it, better for us to avoid it
DeleteDear VP,
ReplyDeleteWhat are your thoughts on Mirza International (runs the brand Red Tape)?
Any reason sir, why Panama Petrochem is down from 150+ to 140 around?
ReplyDeleteHi sir,
ReplyDeleteWhat is your view on Videocon Industries and Value Industries>
Sir , What is your view on Mastek ?.I am holding it at 221/-. Pls suggest.
ReplyDeleteSir pls suggest your views on mastek. I am holding at price 221/-
ReplyDeleteNot tracking it.
Delete