Rama Petrochemicals:A gem of a penny stock
Another penny stock which was suggested to members few months back has started rocking bigtime offlate.Looks good for some more way to go.
Scripscan:Rama Petrochemicals ltd
Cmp:7
Code:500358
Story:Rama Petrochemicals is engaged in the besiness of manufacturing Methanol.Presently methanol is produced by Deepak Fert and GNFC.Demand of methanol in India is increasing at a rapid pace and it is much more than the production capacity at present;the shortfall being met by imports.
Rama had stopped production 4 years ago as it not cost-effective to produce methanol thru regular fuels.However,plant is being maintained in perfect condition. Now,the company will start getting Gas within 4-6 months and will resume production immediately thereafter.With gas as main fuel,the company will run its operations profitably.
Conclusion:Methanol demand in the country is increasing due to sustained growth in it’s end product and new use in bio-diesel manufacture.At these prices of 6-7rs its a gem of a buy with chances of multipling ones money when the production begins.
