Sunday, August 21, 2016

Panama Petrochem Ltd @ 62

1.Panama Petrochem Ltd is a 2 rupee face value Oil Marketing and Distributing Company.
Security ID : PANAMAPET  Group / Index : B  
Face value : 2.00  
Security Code : 524820  
ISIN : INE305C01029.
Brief Details of Company: - Panama Petrochem Ltd was incorporated on March 9 th 1982 under the name of Panama Petrochem Pvt Ltd as a private limited company. 
Company was converted into a Public Ltd company under the name Panama Petrochem Ltd on December 6th, 1993
Panama Petrochem Ltd is one of the leading manufacturers and exporters of more than 80 variants of specialty petroleum products with four manufacturing plants across India today. 
The products are vital for various industries like inks and resins, textiles, rubber, pharmaceuticals, cosmetics, power, cables and other industrial purposes.
Panama Petrochem is also listed on the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE)
INFRASTRUCTURE AND R&D
Panama Petrochem Ltd has four manufacturing units in India with a state of art technology and facilities located at Ankleshwar(Gujarat), Daman(Union Territory), Daman(Gujarat) and Taloja (Dist. Raigadh).
The plant at Dahej is a fully computerized facility built on DCS/PLC systems to meet international quality and manufacturing standards. Ankleshwar plant has a fully equipped and DSIR approved R&D center.
Panama Petrochem Ltd also has unfolded its range of manufacturing facilities through the establishment of Panol Industries RMC, FZE a wholly owned subsidiary of the Company situated at Ras Al Khaimah, UAE. The company caters to the GCC and MENA regions and enjoys the logistic advantage as it is located on the port and has direct dedicated pipeline arrangements.
GLOBAL PRESENCE:-
By exploring international markets, Panama Petrochem Ltd. continuously aims to bring about a rise in the exports. Petroleum Jelly, Liquid Paraffin, Transformer Oil, Rubber Process Oil and variety of other products are exported to different countries like USA, UK, Europe, Middle East, Australia, African Subcontinent and South East Asia, etc.,
PRODUCTS RANGE:-
White Oil/Liquid Paraffin Oil
Petroleum Jelly
Transformer Oil
Ink and Coating Oils
Rubber Process Oil
Textile Industry
Industrial Oils and Greases
Automotive Oils
Drilling Fluids
Waxes 

Source:- http://panamapetro.com/ (Company website )
2. Year high of Panama Petrochem Ltd was 79.25 year low was 52.00 and the stock traded at 62.
Year high/ low ratio is below 2.
So stock is stable for fresh buy, If you are new reader of my blog and not familiar with my research terms, then please read my research terms at this link:-
3. Promoters of Panama Petrochem Ltd hold 70.65 % and No any pledged stock from promoters holding.
See full list of public shareholding including FII and DII here:-
Click here to see FII DII holding
4.Panama Petrochem Ltd Panama Petro pay regular dividends since 2004.
So, as per my theory, most of my recommendations are dividend paying, and we get dividends in our holding period, However company does not declare this year dividend yet,  See past  few years dividend history here:-
Dividend Declared (  )
EX DateAmount ()
08 Sep 20152.0000
12 Aug 20146.0000
19 Sep 20134.0000
31 Jul 20122.0000
24 Nov 20113.0000
20 Sep 20115.0000
16 Sep 20105.0000
23 Sep 20094.0000
23 Sep 20084.0000
21 Sep 20073.0000
5. The base price of Panama Petrochem Ltd is 52.50,  Panama Petro face value split from Rs 10 to 2 at 19 Sept 2014, So download this excel sheet to knew how face value split adjusted when calculated base price. (This sheet also contains last 3-year closing price with the graph.) 
Click Here to Download last three year Closing Price and Base price Calculation of PPL 
So at CMP 62 is 18.09% higher than base price and stock cross his base price from lower price to higher price this is a strong bull indication in my theory.
6. No any bonus issue right issue and bulk deals are recorded in last two years but face value split from face value 10 to 2 has happened on 19 Sept 2014 which near about completed two years.
Panama Petro is the best example that why I say " Avoid a stock at least two years after bonus, split, right issue". Because on 19 Sept 2014 face value of Panama Petro split from 10/- to 2/- and after this face value split Panama Petro stock listed @64.65 on 19 Sept 2014 and Now on 19 Aug 2016 CMP of Panama Petro is 62.00, So investors got nothing in last two years. 
Now when near about two years is completed, and stock already moves from his 30,50,150 DMA and ready to cross 200DMA then I choose it for my research report and June 2016 good results also suggest that stock is ready to move upward.
7. Panama Petrochem Ltd net sale per share of FY 15-16 is 164.79.
8. Net sale per share 164.79  is  higher than CMP, so this stock has chance to become a multi-bagger stock
9. Book value of Panama Petrochem Ltd is 68.00 Book value is also higher than CMP, So in book value term PPCL is a value buy at CMP.
8.200 DMA of Panama Petrochem Ltd is 63.14 So at CMP 62.00 Panama Petro traded below his 200 DMA 63.14, and  I think after this research report on Monday stock open at the higher valuation and give a positive breakout over this DMA. So buying range between 62.00 to 68.00 is good for fresh buy on Monday.
Simple Moving Averages of Panama Petrochem Ltd:-
DAYSBSENSE
3060.4260.56
5058.4858.52
15061.3761.24
20063.1463.00
9.Finally, on this sharegenius blog, I publish stocks for  20% returns in 3 months holding period. 
In chapter 2 of my book I wrote that if you invest $100 initially ( add 10% of your monthly income every month) then rotate your money to book 15% profit in every three months then your $100 will grow as $ 7,18,03,722 in 20 years. 
So I make this blog for proving this theory of chapter 2, Soon I publish practical profit booking report of this blog recommendation (like Chandu story).
However, fundamental target price of Panama Petro is 85.58.
So after 20% returns if you wish to hold it then book your profit near 86-90.
 If you want to use stop loss then as my rule of this blog put SL 55.80  (Which is 10% below of 62 and our trading target is 20% up from 62, so risk reward ratio is 1:2)
11. Disclaimer: - This is not an advisory service to buy or sell. The contents of “this research report” are only for educational purposes. No liability is accepted for any content in “this research report”. The author is neither a registered stockbroker nor a registered advisor and does not give investment advice. His comments are an expression of opinion only and should not be construed in any manner whatsoever as recommendations to buy or sell a stock, option, future, bond, commodity, index or any other financial instrument at any time.The author recommends that you consult with a qualified investment advisor, one licensed by appropriate regulatory agencies in your legal jurisdiction, before making any investment decisions. Please read full disclaimer at the bottom of my blog.
12.Discloser: - I Mahesh Chander Kaushik author of this research report is an existing research analyst and passed NISM certification for research analysts. I am also registered under SEBI(RESEARCH ANALYSTS) REGULATIONS, 2014 ( SEBI Registration Number INH 100000908 ) hereby disclose about my financial interest in the subject company and the nature of such financial interest:- 1 Me and my associates or relatives have not hold any share of Panama Petrochem Ltd, so my personal interest is not included in this stock. 2. Me and my associates or relatives have not any actual/beneficial ownership of one percent or more securities of the subject company ( Panama Petrochem Ltd). 3. Me and my associates or relatives have not any other material conflict of interest at the time of publication of the research report. 4. Me and my associates or relatives have not received any type of compensation from the subject company(Panama Petrochem Ltd) in the past twelve months. 5. I am not served as an officer, director or employee of the subject company ( Panama Petrochem Ltd). 6. I have been not engaged in market making activity for the subject company (Panama Petrochem Ltd).

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