Investor Affairs

Engro Polymer and Chemicals  Company description   Engro Polymer and Chemicals Limited (EPCL) , a 56%-held subsidiary of Engro Corporation, is the sole producer of PVC Resins in Pakistan. The company also produces caustic soda, Sodium hypochlorite and Hydrochloric acid. EPCL’s total production capacity of PVC stands 295k tons after the addition of its PVC line III in CY21, having production capacity of 100k tons.  Moreover, the company also has production capacity of caustic soda and flakes tallying to 126 k tons. Since EPCL is the sole producer of PVC, it holds ~85%-90% share of the domestic PVC market. Its caustic soda market share stands at 29% where it is the only producer present in the South. The current sales mix stands at 80/20 PVC/Caustic with exports to USA, Middle East, Europe, and Afghanistan contributing approximately 6%. Target Price & Ratin We reinstate coverage on Engro Polymer and Chemicals (EPCL), the sole producer of PVC in Pakistan, with a “BUY” sta