Panama Petrochem Ltd Detail
As per the Company website it is one of the leading manufacturers and exporters of more than 80 variants of petroleum specialty products. The products are vital for various industries like inks and resins, textiles, rubber, pharmaceuticals, cosmetics, power, cables and other industrial purposes.
The Company has four plants all situated in western part of India. The plants are in Bharuch and Ankleshwar in Gujarat, Taloja in Mumbai and in Daman.The products from Company are listed below
- Liquid Paraffin Oil
- Petroleum Jelly
- Transformer Oil
- Ink and Coating Oil
- Rubber process Oil
- Textile Industry
- Industrial Oil and Greases
- Automotive Oil
- Drilling fluids
It also has 100% subsidiary Company Panol situated in UAE. Panol also deals with product range mentioned above. It is also certified Star export house.
I have shared long term price performance chart of the Company below.As per Dow theory of technical analysis price performance over a period of time reflects Company state.
Panama Petrochem Ltd Stock Performance
Panama Petrochem is a multi bagger. It has given more than 100 times return in past 16 years period. It also gives close to 1% dividend at current market price which translates to more than 100% dividend at 2002 price. A company which grows in price and offers good dividend is best friend for any investor.
Petrochemicals business is competitive one but it has carved its path and gave stellar returns to investors. It has consistently performed over the years and slowly became a multi bagger.
Panama Petrochem Ltd My Opinion
Panama Petrochem Ltd is a Petrochemicals Company. The Company deals with close to 90 products with wide range of applications in different industries.
Petrochemicals has wide range of usage. There are many Companies dealing with petrochemicals in India and World. Reliance the Indian Giant also deals with Petrochemicals. Panama Petrochemicals is small company but good range of products.
As said above very big Companies also operate in this segment and it would be nice to see how Panama compares and performs in comparison to them. It has really grown over the years but growth after this point will be interesting.
The sector is good as different industries have demand for these products. The only problem is dependence on Crude. So crude oil prices will have major impact on Companies. I have not invested in Petrochemicals for now. The reason is competitiveness and direct dependence on Crude.
In case you are interested then you can track the company by adding it to your stock watch list. That way you can keep close eye on the Company.