Equity Analysis /
Pakistan

Engro Polymer & Chemicals Ltd: Spreads to remain healthy but normalise from present highs

  • We resume coverage of EPCL with a TP of PKR66/sh and our EPS estimates are PKR11.66/10.75 for CY22/23f

  • We expect PVC-Ethylene spreads to remain healthy converging to 13-year long-term average by CY24

  • Despite normalised margins, earnings of EPCL likely to sustain at higher levels amid increase in domestic market share

Azan Memon
Intermarket Securities
1 November 2021