Ramesh Damani & Anil Kumar Goel join hands in Panama Petro, a micro-cap with multibagger prospects

Ramesh Damani & Anil Kumar Goel join hands in Panama Petro, a micro-cap with multibagger prospects. The stock is up 200% YoY. Promoters hold 71%. It has a ROCE of 33% and a debt:equity of 0.12

Old timers may recollect that in March 2017 Panama Petrochem was the favourite of ace investors like Madhukar Sheth, Anil Kumar Goel, Dolly Khanna, Chetan Parikh’s Jeetay Investments.

However, for one reason or the other, Dolly and her compatriots lost interest in the stock and slowly exited the stock.

Only Anil Kumar Goel has stayed loyal and held on tight to his holding of 7,80,000 shares.

He is now joined by the distinguished Ramesh Damani, who holds 6,16,379 shares as of 31st December 2021.

Nigel D’Souza has earlier explained the fundamentals of Panama Petrochem in a crisp manner.

Panama Petrochem is a micro-cap with a market capitalisation of Rs. 1800 crore. It has strong fundamentals. Apart from the high ROCE of 33% and a low debt:equity of 0.12, the P/E ratio is reasonable at 8.07. The Dividend yield is 0.96%.

It is a manufacturer and exporter of petroleum speciality products. It has four manufacturing units in India, namely in Ankleshwar (Gujarat), Daman (Union Territory), Dahej (Gujarat, SEZ) and Taloja (District Raigadh) having infrastructure, with storing capacities.

The specialty petroleum products find application in diverse user industries like printing, textiles, rubber, pharmaceuticals, cosmetics, power and other industrial oil.

The company caters to the GCC and MENA regions and enjoys a logistic advantage as it is situated on the port and has direct dedicated pipeline arrangements. Petroleum jelly, liquid paraffin, transformer oil, rubber process oil and a variety of other products are exported to different countries like the USA, UK, Europe, Middle East, Australia, African Subcontinent and Southeast Asia etc.

On its future outlook, the company in FY21 annual report said that the aggregate demand of all the key segments in the petrochemical industry is likely to regain a sharp positive trajectory, with key players aiming to ramp up scale.

The company further said it is planning to expand its operations. It is hopeful of overriding the adverse effects of the price fluctuations in the petroleum industry by resorting to bulk purchases and cost control measures.