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panama petrochem

Printed From: The Equity Desk
Category: Investment Ideas - Creating winning portfolios!
Forum Name: Stock Synopsis
Forum Discription: A bried discussion of companies on very specific matters. Normally this is the prelude for further research as always members would be discussing quality companies with good management only
URL: http://www.theequitydesk.com/forum/forum_posts.asp?TID=613
Printed Date: 21/Apr/2025 at 2:45pm


Topic: panama petrochem
Posted By: tigershark
Subject: panama petrochem
Date Posted: 23/Nov/2006 at 8:52pm
produces petroleum jelly for the pharma and cosemetic industry, produces transformer oils, produces jelly for jelly filled cables this is the main business.last but not the least furnish various electricity boards and atomic research centers with thier required products.plants are based at ankeleswar and daman daman is a new plant and already 63% of the turnover has come from this plant.they have a technical tie up with lubcon of germany.fundamentals in breif- equity4.262crs mkt cap 50crs halfyrly turn over 80crs np 4.7 crs for the half yr eps of a little over 10half yrly.so annualised pe is roughly 5.8.with transformer ind growing telecom and cosemetics growing demand for product looks good on the flip side higher raw mat prices could affect margins mngmt says it has taken steps to control raw mat flucations.rj owns 1.71% of the cos equity 73008 shares.one can visit www.panamapetro.com for more bout the co.basant and senior members what do yu feel does it make a compelling case for investment what and who are the management anybody with some inclination pl throw some light

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understanding both the power of compound return and the difficulty getting it is the heart and soul of understanding a lot of things


Replies:
Posted By: tigershark
Date Posted: 23/Nov/2006 at 9:01pm
panama recently has had a tie up with petronas of malaysia to mkt their auto lube     syntium mr rayani md said he was confident of achiving a turnover of 200crs for 2007-08 from the automative business alone the malaysian partner may start playing a more active role in the second half of 2007 he said

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understanding both the power of compound return and the difficulty getting it is the heart and soul of understanding a lot of things

Posted By: vishal.sahay
Date Posted: 23/Nov/2006 at 9:12pm
its true that company is trading at cheap valuations and the next qtr resulst will also be very good. but the only concern witht his stock is that if the crude starts rsing then it will affect the operating margins of the company. it might also get affected by any rise in interest rates whihc might hurt its CAPEX plans.

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Vishal

Posted By: tigershark
Date Posted: 23/Nov/2006 at 9:18pm
agreed and very true.CRUDE is the key factor also if yu see 2005-06 results their margins is 6.5% i feel they need to improve on that

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understanding both the power of compound return and the difficulty getting it is the heart and soul of understanding a lot of things

Posted By: omshivaya
Date Posted: 23/Nov/2006 at 11:11pm
Remember Mark Mobious' interview with Udayan on CNBC-TV18, when he mentioned next "big thing" : "speciality chemicals".
 
 
Basant ji, could you please update us if there is any link here worth investing into or folllowing up?
 
A small inside research on this one from YOU(kindly)...as supposedly RJ has got into this and we have come to know of it early on and Mark Mobious interview.


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The most important quality for an investor is temperament,not intellect.A temperament that neither derives great pleasure from being with the crowd nor against it

Posted By: basant
Date Posted: 23/Nov/2006 at 9:26am
You know how good I am at these kind of companies so that is why I give it  a pass for someone else who knows this well.

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'The Thoughtful Investor: A Journey to Financial Freedom Through Stock Market Investing' - A Book on Equity Investing especially for Indian Investors. Book your copy now: www.thethoughtfulinvestor.in

Posted By: omshivaya
Date Posted: 23/Nov/2006 at 9:32am

Okiee Dokiee sir. Thank you very much.



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The most important quality for an investor is temperament,not intellect.A temperament that neither derives great pleasure from being with the crowd nor against it

Posted By: manishdave
Date Posted: 23/Nov/2006 at 10:43am
Foseco is in speciality chemicals. Good company thoug I dont track since few years.
Savita Chemicals is answer to castrol and its brand Idemitsu is getting stronger.
 

Posted By: heponly
Date Posted: 23/Nov/2006 at 11:25am
Yes Certainly specialty chemicals is going to be a big thing. Crude prices dosen't affect much to the bottomline of these companies. The base oil affects its prices. I think now the rate is 800-830$.It might come down to 700-750$ as per Savita chemicals CEO speak.
Apart from Panama petro, Savita chemicals & Apar Industires are into this business. HDFC owns a substanial stake in Savita.Many funds own Apar also.
RJ taken stake in Panama,definitely there must be something big in it.The PE ratios & equity now make it a safe bet.

Posted By: Mohan
Date Posted: 16/Feb/2007 at 9:41pm
Savita and Panama are in similar line of Business.
Panama is putting up a new plant in Himachal Pradesh.
RJ has stake in Panama. The Petronas deal will give a big boost to topline and bottomline as already reflected in Dec Quarter results.


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Be fearful when others are greedy and be greedy when others are fearful.

Posted By: us121
Date Posted: 16/Feb/2007 at 11:19pm
i made a small purchase in Panama about 2 months back.
i did it based on some statistics which were presented in Ramesh Damani's chat and sort of his so called positive comment (not verys strong though).
ofcourse, prior to that i studied what ever i could do from web which has been already presented here in this thread.
i am also awaiting for some new news before moving further on this company.


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ABILITY will get u at d top. CHARACTER will retain u at d top

Posted By: Mohan
Date Posted: 16/Feb/2007 at 11:36pm

I believe RD is following the company too.

RD and RJ are close. Rd likes midcaps and this one is still a microcap.
 


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Be fearful when others are greedy and be greedy when others are fearful.

Posted By: excel_monkey
Date Posted: 29/Dec/2010 at 3:44am
at a P/E of 5
valuations are mouthwatering
ROE at 30% + is sexy
profit growth at 5 year 29% CAGR is exciting

the question is the business sustainable and exciting as well

any TEDies following this company?

Posted By: iaditya
Date Posted: 29/Dec/2010 at 9:45am
rj has exited this counter a while back.

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Buy Solid Companies. Hold for 5 years. Avoid watching TV. Sleep Well.

Posted By: Market Maniac
Date Posted: 09/Feb/2011 at 1:14am
Chor Company


Panama Merged a promoter group co. named Mobil Petro with itself in FY09 resulting in dilution of 22%.

Now this merger added 20Cr to the networth of Panama.

There is also an addition of 20Cr to the Gross Block of Buildings.

Moreover this building of Mobil Petro was revalued so as to arrive at 20Cr.

Mobil Petro Pvt. Ltd. was into Petrochemical Trading.

Panama's Sales of Traded goods increased by only 4Cr in FY09 yoy.

Clearly the merger was done to enhance the promoter shareholding from 38% to 55%

Monaco Petro another promoter co. is next in line for merger.

The previous annual reports don't show any significant related party transactions with Mobil Petro & Monaco Petro so synergy is not the rationale of the merger.    

I think they will only stop when their holding reaches 75% which is the maximum permissible limit.

Although Valuations are cheap and I have been told that the co. might do Sales of 500Cr. in FY11 & 1000Cr. in FY12, No margin of safety is high enought without management integrity.


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