<ul><li><span style="font-family:Arial, Helvetica, sans-serif;font-size:medium;">We initiate our coverage of Engro Polymer and Chemicals
Limited (EPCL) with ‘BUY’ offering total return of 39% from last closing. The
stock has outperformed broad market by 30% CYTD but we believe there is still
more on offer with expected triggers and earnings growth trajectory. Our
investment thesis revolves around volumetric growth in PVC segment led by
construction sector demand while integrated operations will aid the company to
utilize synergies across product portfolio. PVC margins have recently touched
12-year high of USD 710/ton which seems to be a temporary phenomenon while we
have assumed margin of USD 400/ton (long term average) which still yields a
5-year earnings CAGR of 16%.</span></li><li><span style="font-family:Arial, He...
