1. Buy or Sell at your own risk
2. Don't risk more than 1%-2% of your capital as stop loss
3. Position Size formula:- Stop Loss Amount/(Buy Price-Initial Stop Loss Price)
4. Sell on initial stop loss hit or daily RSI closing below 40
5. Some other ways to sell stocks can be
a. 25% or 50% up in three weeks or less
b. Weekly tailing tops with high volume
c. Exhaustion gaps
d. Heavy daily volume without further upside
e. Largest one day price drop
After a consolidation since January 2022,
PANAMAPET
has given a break out on 13th April. Buy with a stop at Rs.298.
Other fundamentals:
1. TTM sales growth of 90% and TTM and profit growth of 186%.
2. At a consolidated level, PPL reported a healthy revenue growth of Rs. 1,114.7 crore in H1 FY2022, compared with Rs. 1,447.0 crore in FY2021 on the back of healthy sales volume and higher average sales realisations. ICRA also notes the improvement in the operating profit margin to 14.3% in H1 FY2022 against 13.2% in FY2021. The margin improvement was on the back of better realisation following healthy demand and measures taken by the company, which increased the share of high-margin products to its total revenues and inventory gains.
3. The company has a strong customer profile, including large international FMCG companies such as Dabur and Marico, and reputed players in the textile, ink and tyre sectors, and has long-term relationships with several of its key clients. The company’s customer profile remains well-diversified across several industries, mitigating the risks of a demand slowdown in any particular sector. PPL’s revenues are well-diversified in the domestic and overseas markets. Its exports account for 40-45% of its total standalone sales distributed across Africa, East Asia, South America, and Europe. The company also operates in West Asia through its subsidiary, Panol Industries RMC. Further, PPL has a diversified presence in India. A geographically diversified revenue base helps mitigate the risks against slowdown in any market.
4. PPL’s liquidity is expected to remain strong, supported by healthy cash accruals and low utilisation of its working capital limits. Further, it has no long-term debt repayment obligations and the consolidated cash and bank balance was Rs. 44.86 crore (Rs. 28.38 crore, standalone) as on September 30, 2021. The company has capacity expansion plans of Rs 100 crore over a three year period, which will be funded by internal accruals.
5. The company has delivered good profit growth of 40.00% CAGR over the last 5 years.
6. The company is almost debt free.
7. Debt to equity at 0.07 (less than 1 is good), Interest Coverage at 39.6 (greater than 3 is good), Current ratio at 2.13 (greater than 1.5 is good).
8. As on 31st March 2022, Anil Kumar Goel has 1.56% and Ramesh Damani has 1.26% stake in the company.
2. Don't risk more than 1%-2% of your capital as stop loss
3. Position Size formula:- Stop Loss Amount/(Buy Price-Initial Stop Loss Price)
4. Sell on initial stop loss hit or daily RSI closing below 40
5. Some other ways to sell stocks can be
a. 25% or 50% up in three weeks or less
b. Weekly tailing tops with high volume
c. Exhaustion gaps
d. Heavy daily volume without further upside
e. Largest one day price drop
After a consolidation since January 2022,
PANAMAPET
has given a break out on 13th April. Buy with a stop at Rs.298. Other fundamentals:
1. TTM sales growth of 90% and TTM and profit growth of 186%.
2. At a consolidated level, PPL reported a healthy revenue growth of Rs. 1,114.7 crore in H1 FY2022, compared with Rs. 1,447.0 crore in FY2021 on the back of healthy sales volume and higher average sales realisations. ICRA also notes the improvement in the operating profit margin to 14.3% in H1 FY2022 against 13.2% in FY2021. The margin improvement was on the back of better realisation following healthy demand and measures taken by the company, which increased the share of high-margin products to its total revenues and inventory gains.
3. The company has a strong customer profile, including large international FMCG companies such as Dabur and Marico, and reputed players in the textile, ink and tyre sectors, and has long-term relationships with several of its key clients. The company’s customer profile remains well-diversified across several industries, mitigating the risks of a demand slowdown in any particular sector. PPL’s revenues are well-diversified in the domestic and overseas markets. Its exports account for 40-45% of its total standalone sales distributed across Africa, East Asia, South America, and Europe. The company also operates in West Asia through its subsidiary, Panol Industries RMC. Further, PPL has a diversified presence in India. A geographically diversified revenue base helps mitigate the risks against slowdown in any market.
4. PPL’s liquidity is expected to remain strong, supported by healthy cash accruals and low utilisation of its working capital limits. Further, it has no long-term debt repayment obligations and the consolidated cash and bank balance was Rs. 44.86 crore (Rs. 28.38 crore, standalone) as on September 30, 2021. The company has capacity expansion plans of Rs 100 crore over a three year period, which will be funded by internal accruals.
5. The company has delivered good profit growth of 40.00% CAGR over the last 5 years.
6. The company is almost debt free.
7. Debt to equity at 0.07 (less than 1 is good), Interest Coverage at 39.6 (greater than 3 is good), Current ratio at 2.13 (greater than 1.5 is good).
8. As on 31st March 2022, Anil Kumar Goel has 1.56% and Ramesh Damani has 1.26% stake in the company.