Panama Petrochem Limited is an India-based company engaged in the business of manufacturing and exporting various kinds of petroleum specialties. Incorporated on March 9, 1982, the company has grown to become one of the prominent players in the petroleum specialty products sector, supplying to diverse user industries such as printing, textiles, rubber, pharmaceuticals, cosmetics, power, and other industrial oil applications.
The company manufactures specialty petroleum products under the brand name "PANOL," catering to a wide range of industrial applications. With approximately 80 variants of petroleum specialty products, Panama Petrochem has established a strong presence in both domestic and international markets, positioning itself as a leading manufacturer and exporter in its field.
Panama Petrochem boasts an extensive product portfolio designed to serve multiple industries. The company's diverse range of products includes:
- White oil/liquid paraffin oil
- Petroleum jelly
- Transformer oil
- Ink and coating oils
- Rubber process oil
- Industrial oils and greases
- Automotive oils
- Drilling fluids
- Waxes (fully refined paraffin wax, semi-refined paraffin wax, slack wax, micro wax)
- Textile oils
- Cable filling compounds
- Solutions for the ink, resin, and paint industries
This comprehensive range offers petroleum-based solutions across various industrial sectors.
The company operates manufacturing facilities at four strategic locations:
- Ankleshwar (Gujarat)
- Daman (Union Territory), which commenced production in December 2003
- Taloja (Raigadh, Maharashtra), which commenced operations in June 2007
- Dahej (Bharuch, Gujarat)
This geographical distribution of manufacturing facilities enables efficient production and distribution across India, supporting both domestic and international market demands.
Panama Petrochem's geographical segments include Domestic and Overseas, with a significant focus on export markets. The company exports its products to a wide array of regions, including:
- The United States
- The United Kingdom
- Europe
- Middle East
- Australia
- African Sub-continent
- South East Asia
This diversified geographical presence helps reduce dependency on any single market and provides robust opportunities for growth in international markets.
As of the latest available data, Panama Petrochem Ltd has a market capitalization of ₹2,145 Crore. According to Value Research classification, it is considered a Small Cap company. The P/B ratio of Panama Petrochem Ltd is 1.90 times as on 16-May-2025, which is a 86% premium to its peers' median range of 1.02 times. The P/E ratio is 11.39 times as on 16-May-2025, representing a 27% discount to its peers' median range of 15.51 times.
FY2024-25 Performance:
- Revenue: ₹2,792.89 crore, up 18.5% YoY
- Net Profit: ₹187.03 crore, declined 4.16% YoY (vs. ₹195.15 crore in FY2023-24)
- Sales: ₹2,792.89 crore, up 18.51% YoY (vs. ₹2,356.74 crore in FY2023-24)
Q4 FY2024-25 Performance:
- Net Profit: ₹44.27 crore, declined 27.40% YoY (vs. ₹60.98 crore in Q4 FY2023-24)
- Sales: ₹695.23 crore, declined 6.17% YoY (vs. ₹740.97 crore in Q4 FY2023-24)
Q3 FY2024-25 Performance:
- Net Profit: ₹48.50 crore, jumped 17.26% YoY
- Revenue: ₹731.81 crore, jumped 42.35% YoY
- Market Capitalization: ₹2,145 Crore (as of latest data)
- Promoter Holding: 61.94% (as of March 2025)
- P/B Ratio: 1.90 times (as on 16-May-2025)
- P/E Ratio: 11.39 times (as on 16-May-2025)
- Debt Status: Almost debt-free, indicating strong financial health and efficient capital management.
- Dividend Payout: The company has been maintaining a healthy dividend payout of 17.4%. The Board of Directors have recommended a final dividend of ₹3 per equity share (150%) for FY2025, subject to shareholder approval.
Panama Petrochem has received reaffirmation in credit ratings from ICRA at ICRA A+; Stable/ ICRA A1+ for its bank facilities. This reflects the company's strong financial position and creditworthiness in the market.
Pursuant to the company's succession planning framework, Amirali Rayani stepped down from the position of Chairman effective July 31, 2025, but will continue to serve as a member of the Board. Accordingly, Arif Rayani, Executive Director, has been re-designated as the Chairman of the Company, effective August 1, 2025.
Panama Petrochem Limited has demonstrated a robust growth trajectory:
- Over the last 5 years, revenue has grown at a yearly rate of 22.76%, significantly higher than the industry average of 11.03%.
- Market share increased from 1.89% to 2.96% over the last 5 years, indicating an expanding market presence.
- Net income has grown at a yearly rate of 45.4% over the last 5 years, far surpassing the industry average of 7.75%.
Panama Petrochem Limited stands as a well-established player in the petroleum specialty products industry, backed by a diversified product portfolio, strong export presence, and consistent financial performance. The company's almost debt-free status, healthy dividend policy, and strategically located manufacturing facilities position it well for continued growth and leadership in the specialty chemicals sector.
