Check Before You Invest : Panama Petrochem Ltd

Q: Which industry/sub-sector does Panama Petrochem Ltd belong to?

Panama Petrochem Ltd belongs to the Automobiles sector, operating specifically within the Lubricants segment.

Q: Is Panama Petrochem Ltd a good quality company?

Panama Petrochem Ltd is a good quality company, based on a consistently good multi-year financial track record. This assessment is based on company’s performance on Revenue growth, ROCE, Equity and Assets, key margin ratios, cash conversion cycle, and debt to cash flow from operations and how it compares with its long term averages.

Q: Is Panama Petrochem Ltd undervalued or overvalued?

Panama Petrochem Ltd appears Fair, as its key valuation ratios are in line with their past averages. Based on the industry it operates in, the relevant valuation ratios include one of the following, P/E, P/BV, P/Sales, EV/EBITDA or a combination of two or more. Valuation Ratios. Price to Earnings, Current: 15.59, Historic Median: 12.54. Price to Book, Current: 1.94, Historic Median: 2.49. Price to Sales, Current: 1.05, Historic Median: 1.15. EV to EBITDA, Current: 10.04, Historic Median: 8.17

Q: Is Panama Petrochem Ltd a good buy now?

Panama Petrochem Ltd is a good buy now, based on strong price trend analysis suggesting prices may rise. However, you need to check its quality and valuation before making a decision

Q: Revenue growth of Panama Petrochem Ltd?

Panama Petrochem Ltd revenue growth is 3% for FY-2025, which is below its 5-year CAGR of 16.9%, indicating slower growth.

Q: Gross Profit margin of Panama Petrochem Ltd?

Panama Petrochem Ltd Gross profit margin which is the profit after deduction of direct costs, is 9.3% for FY-2025, which is below its 5-year median of 14.4%, indicating decreasing margins.

Q: Operating Profit Margin of Panama Petrochem Ltd?

Panama Petrochem Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 9.75% for FY-2025, which is below its 5-year median of 14.37% indicating decreasing margins.

Q: Net Profit Margin of Panama Petrochem Ltd?

Panama Petrochem Ltd Net Profit Margin is 6.57% for FY-2025, is below its 5-year median of 10.27%, indicating decreasing margins. Profitability Metrics. Gross Profit Margin (%), Current: 9.3, Historic Median: 14.4. Operating Profit Margin (%), Current: 9.75, Historic Median: 14.37. Net Profit Margin (%), Current: 6.57, Historic Median: 10.27

Q: Return on Asset of Panama Petrochem Ltd?

Panama Petrochem Ltd Return on Asset is 9.26%, which is below its 5-year historical median of 14.72%, indicating deteriorated asset utilization efficiency.

Q: Return on capital employed (ROCE) of Panama Petrochem Ltd?

Panama Petrochem Ltd Return on capital employed is 18.99% for FY-2025, which is below its 5-year historical median of 35.61%. The current ROCE is above its estimated weighted average cost of capital (WACC) of 14%, indicating value creation.

Check Before You Invest : Panama Petrochem Ltd

BSE: 524820 NSE: PANAMAPET ISIN: INE305C01029

| Sector: Automobiles | Industry: Lubricants

Snapshot

Q.1 Which industry/sub-sector does Panama Petrochem Ltd belong to?

Panama Petrochem Ltd belongs to the Automobiles sector, operating specifically within the Lubricants segment.

Q.2 Is Panama Petrochem Ltd a good quality company?

Panama Petrochem Ltd is a good quality company, based on a consistently good multi-year financial track record.

This assessment is based on company’s performance on Revenue growth, ROCE, Equity and Assets, key margin ratios, cash conversion cycle, and debt to cash flow from operations and how it compares with its long term averages.

Q.3 Is Panama Petrochem Ltd undervalued or overvalued?

Panama Petrochem Ltd appears Fair, as its key valuation ratios are in line with their past averages.

Based on the industry it operates in, the relevant valuation ratios include one of the following, P/E, P/BV, P/Sales, EV/EBITDA or a combination of two or more.

Valuation Ratios	Current	5-year Historic Median
Price to Earnings	15.59	12.54
Price to Book	1.94	2.49
Price to Sales	1.05	1.15
EV to EBITDA	10.04	8.17

Q.4 Is Panama Petrochem Ltd a good buy now?

Panama Petrochem Ltd is a good buy now, based on strong price trend analysis suggesting prices may rise. However, you need to check its quality and valuation before making a decision

Performance Analysis

We have analysed the performance of the company on the following:

How has it performed on generating Profits?
By checking its Revenue growth, Gross, Operating and Net Margins compared to its last 5-year median.
How efficiently has it utilized Capital?
By checking its ROCE, ROA, ROE and its Cash Conversion Cycle.
How is it managing its Debt?
By checking its Debt to Equity and Cash Flow from Operations.

A: What are the trends in revenue and profit margins?

Q.1 Revenue growth of Panama Petrochem Ltd?

Panama Petrochem Ltd revenue growth is 3% for FY-2025, which is below its 5-year CAGR of 16.9%, indicating slower growth.

Q.2 Gross Profit margin of Panama Petrochem Ltd?

Panama Petrochem Ltd Gross profit margin which is the profit after deduction of direct costs, is 9.3% for FY-2025, which is below its 5-year median of 14.4%, indicating decreasing margins.

Q.3 Operating Profit Margin of Panama Petrochem Ltd?

Panama Petrochem Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 9.75% for FY-2025, which is below its 5-year median of 14.37% indicating decreasing margins.

Q.4 Net Profit Margin of Panama Petrochem Ltd?

Panama Petrochem Ltd Net Profit Margin is 6.57% for FY-2025, is below its 5-year median of 10.27%, indicating decreasing margins.

	Current Level	5-year Historic Median
Gross Profit Margin (%)	9.3	14.4
Operating Profit Margin (%)	9.75	14.37
Net Profit Margin (%)	6.57	10.27

B: Does the business utilize capital efficiently?

Q.5 Return on Asset of Panama Petrochem Ltd?

Panama Petrochem Ltd Return on Asset is 9.26%, which is below its 5-year historical median of 14.72%, indicating deteriorated asset utilization efficiency.

Q.6 Return on capital employed (ROCE) of Panama Petrochem Ltd?

Panama Petrochem Ltd Return on capital employed is 18.99% for FY-2025, which is below its 5-year historical median of 35.61%. The current ROCE is above its estimated weighted average cost of capital (WACC) of 14%, indicating value creation.

Q.7 Return on Equity (ROE) of Panama Petrochem Ltd?

Panama Petrochem Ltd Return on equity is 13.04% for FY-2025, which is below its 5-year historical median of 25.49%, indicating the business is making worse use of its shareholders capital.

Q.8 Cash conversion cycle of Panama Petrochem Ltd?

Panama Petrochem Ltd Cash conversion cycle is 103 days, above its 5-year historical median of 55 days, indicating deteriorated working capital management. However, you need to compare this with its peers in the industry.

	Current Level	5-year Historic Median
Asset Turnover (x)	1.41	1.41
ROE (%)	13.04	25.49
ROCE (%)	18.99	35.61
Cash Conversion Cycle	103 days	55 days

C: How much debt does the business have and is it at a sustainable level?

Q.9 Debt to Equity ratio of Panama Petrochem Ltd?

Panama Petrochem Ltd Debt-to-Equity ratio is 0.00, which is lower the industry average of 0.01, indicating lower debt levels in the industry.

Q.10 Debt to cash flow from operations of Panama Petrochem Ltd?

Panama Petrochem Ltd Debt to cash flow from operations is 0.03, which is at a healthy level.

Ownership & governance

D: Promoter shareholding and pledge status of Panama Petrochem Ltd?

Q.1 Promoter shareholding and pledge status of Panama Petrochem Ltd?

Promoters hold 63.16% of the Panama Petrochem Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

E: How does Panama Petrochem Ltd performance compare with that of its Peers?

Q.1 Revenue growth of Panama Petrochem Ltd vs industry peers?

Panama Petrochem Ltd revenue CAGR is 16.90%, compared to the industry median CAGR of 13.26%, indicating faster growth and gaining its market share.

Profit Metrics

	Current Level	5-year Industry Median
Revenue Growth (%)	3	13.3
Gross Profit Growth (%)	-9.8	12.5
Operating Profit Growth (%)	-11.1	10.5
Net Profit Growth (%)	-10.7	11.3

Operating Efficiency

	Current Level	5-year Industry Median
Asset Turnover (x)	1.41	1.72
ROE (%)	13.04	20.76
ROCE (%)	18.99	24.52
Cash Conversion Cycle (days)	103.31	52

Valuation & price assessment

Q.1 Stock return of Panama Petrochem Ltd over the last decade?

Over the last 9 year(s), the stock has delivered a CAGR of 21.7% based on the current price.

	9Y	5Y	3Y	1Y
Share Price CAGR	21.7%	11.4%	2.8%	-16.6%

Q.2 Valuation ratios of Panama Petrochem Ltd vs historical?

The current P/E ratio of 15.59 is higher than its historical median of 12.54, indicating that the stock is trading above its historical average valuation.

Q.3 How do the current valuation ratios compare with 5-year historical median and industry numbers?

Valuation Ratios	Current	5-year Historic Median	5-year Industry Median
Price to Earnings	15.59	12.54	13.04
Price to Book	1.94	2.49	2.13
Price to Sales	1.05	1.15	0.71
EV to EBITDA	10.04	8.17	8.15

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Check Before You Invest : Panama Petrochem Ltd

Snapshot

Performance Analysis

Ownership & governance

Peer comparison (industry-wise, mcap)

Profit Metrics

Operating Efficiency

Valuation & price assessment

Check more companies

Check trending companies

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