Shares of this smallcap company surged around 10 percent in Monday’s trading session after reporting an increase in net profits by 47 percent QoQ. In six months, the shares have delivered around 20 percent return to its shareholders.
With a market capitalization of Rs. 2,258 crores, the shares of Panama Petrochem started Monday’s trading session on a flatter note at Rs. 348.25 compared to its previous close of Rs. 347.25. During the trading session, the shares hit a high of Rs. 392, gaining around 10 percent, also recorded as the company’s fresh 52-week high and are currently trading at Rs. 382 apiece.
Such a bullish movement in the share price was observed after the company announced quarterly and financial year ended 31st March 2024 results. Quarterly, the revenue zoomed by 45 percent from Rs. 511.83 crores during the December quarter to Rs. 740.97 crores in the March quarter. In addition, the net profits magnified by 47 percent from Rs. 41.36 crores to Rs. 60.98 crores during the same period.
Comparing the same metrics on a YoY basis, the revenue surged around 45 percent from Rs. 510.40 crores during Q4FY23 to Rs. 740.97 crores during Q4FY24. On the other hand, the net profits jumped by 20 percent from Rs. 50.81 crores to Rs. 60.98 crores during the same timeframe.
Additionally, the board of directors of the company have recommended a Final Dividend of Rs 4 per equity share of Rs. 2 each for the financial year ended March 31, 2024.
Earlier, the company successfully implemented its expansion program, adding 30,000 tons of capacity and planned to add a capacity of 15,000 tons to the subsidiary plant in UAE and at the EOU Taloja plant in the coming year.
Moreover, the company has four manufacturing units in India namely in Ankleshwar (Gujarat), Daman (Union Territory), Dahej (Gujarat, SEZ) and Taloja (Dist. Raigadh) having infrastructure, with state-of-the-art technology and storing capacities.
Furthermore, the company plans to diversify its product mix and portfolio by introducing new products and offering customized solutions to clients.
Panama Petrochem Ltd. serves a diverse range of industries with its speciality petroleum products, including printing, textiles, rubber, pharmaceuticals, cosmetics, power, cables, and other industrial purposes.
The company’s return ratios, viz, the return on equity (RoE) and the return on capital employed (RoCE), were reported at decent numbers during FY22-23 with the former reported at 24.46 percent and the latter at 31.78 percent.
Headquartered in Mumbai, Panama Petrochem was incorporated in 1982. The company is engaged in the business of manufacturing and exporting various kinds of Petroleum specialities. It manufactures over 80 variants of petroleum speciality products that are vital for various industries.
Written By Vaibhav Patil
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