Reported Earnings • Apr 12
Full year 2025 earnings: Revenues and EPS in line with analyst expectations Full year 2025 results: PK₨4.29 loss per share (further deteriorated from PK₨0.40 loss in FY 2024). Revenue: PK₨78.0b (up 3.0% from FY 2024). Net loss: PK₨3.90b (loss widened PK₨3.54b from FY 2024). Revenue was in line with analyst estimates. Earnings per share (EPS) were also in line with analyst expectations. Over the last 3 years on average, the company's share price growth rate has exceeded its earnings growth rate by 94 percentage points per year, which is a significant difference in performance. Announcement • Apr 10
Engro Polymer and Chemicals Limited to Report Q1, 2026 Results on Apr 22, 2026 Engro Polymer and Chemicals Limited announced that they will report Q1, 2026 results on Apr 22, 2026 New Risk • Apr 05
New major risk - Share price stability The company's share price has been highly volatile over the past 3 months. It is more volatile than 90% of Pakistani stocks, typically moving 9.9% a week. This is considered a major risk. Share price volatility increases the risk of potential losses in the short-term as the stock tends to have larger drops in price more frequently than other stocks. It may also indicate the stock is highly sensitive to market conditions or economic conditions rather than being sensitive to its own business performance, which may also be inconsistent. Currently, the following risks have been identified for the company: Major Risks Interest payments are not well covered by earnings (0.4x net interest cover). Share price has been highly volatile over the past 3 months (9.9% average weekly change). Earnings have declined by 44% per year over the past 5 years. Announcement • Mar 10
Lotte Chemical Pakistan Limited (KASE:LOTCHEM) signed a non-binding offer to acquire 56.19% stake in Engro Polymer and Chemicals Limited (KASE:EPCL) from Engro Corporation Limited. Lotte Chemical Pakistan Limited (KASE:LOTCHEM) signed a non-binding offer to acquire 56.19% stake in Engro Polymer and Chemicals Limited (KASE:EPCL) from Engro Corporation Limited on March 9, 2026. The transaction is subject to completion of due diligence investigation, execution of definitive agreements and satisfaction of customary approvals. The deal has been approved by the board of directors of Lotte Chemical Pakistan Limited. New Risk • Mar 02
New minor risk - Market cap size The company's market capitalization is less than US$100m. Market cap: PK₨27.8b (US$99.5m) This is considered a minor risk. Companies with a small market capitalization are most likely businesses that have not yet released a product to market or are simply a very small company without a wide reach. Either way, risk is elevated with these companies because there is a chance the product may not come to fruition or the company's addressable market or demand may not be as large as expected. In addition, if the company's size is the main factor, it is less likely to have many investors and analysts following it and scrutinizing its performance and outlook. Currently, the following risks have been identified for the company: Major Risks Interest payments are not well covered by earnings (0.4x net interest cover). Earnings have declined by 44% per year over the past 5 years. Minor Risks Share price has been volatile over the past 3 months (8.1% average weekly change). Market cap is less than US$100m (PK₨27.8b market cap, or US$99.5m). Announcement • Feb 17
Engro Polymer and Chemicals Limited, Annual General Meeting, Apr 27, 2026 Engro Polymer and Chemicals Limited, Annual General Meeting, Apr 27, 2026. Location: karachi Pakistan Reported Earnings • Feb 17
Full year 2025 earnings: Revenues and EPS in line with analyst expectations Full year 2025 results: PK₨4.29 loss per share (further deteriorated from PK₨0.40 loss in FY 2024). Revenue: PK₨78.0b (up 3.0% from FY 2024). Net loss: PK₨3.90b (loss widened PK₨3.54b from FY 2024). Revenue was in line with analyst estimates. Earnings per share (EPS) were also in line with analyst expectations. Over the last 3 years on average, the company's share price growth rate has exceeded its earnings growth rate by 95 percentage points per year, which is a significant difference in performance. New Risk • Feb 16
New minor risk - Share price stability The company's share price has been volatile over the past 3 months. It is more volatile than 75% of Pakistani stocks, typically moving 6.8% a week. This is considered a minor risk. Share price volatility indicates the stock is highly sensitive to market conditions or economic conditions rather than being sensitive to its own business performance, which may also be inconsistent. It also increases the risk of potential losses in the short term as the stock tends to have larger drops in price more frequently than other stocks. Currently, the following risks have been identified for the company: Major Risks Interest payments are not well covered by earnings (0.7x net interest cover). Earnings have declined by 34% per year over the past 5 years. Minor Risk Share price has been volatile over the past 3 months (6.8% average weekly change). Announcement • Feb 03
Engro Polymer and Chemicals Limited to Report Fiscal Year 2025 Results on Feb 13, 2026 Engro Polymer and Chemicals Limited announced that they will report fiscal year 2025 results on Feb 13, 2026 Price Target Changed • Oct 17
Price target decreased by 10% to PK₨32.55 Down from PK₨36.37, the current price target is an average from 2 analysts. New target price is 8.5% above last closing price of PK₨29.99. Stock is down 7.4% over the past year. The company posted a net loss per share of PK₨0.40 last year. Announcement • Oct 10
Engro Polymer and Chemicals Limited to Report Q3, 2025 Results on Oct 21, 2025 Engro Polymer and Chemicals Limited announced that they will report Q3, 2025 results on Oct 21, 2025 Reported Earnings • Sep 04
Second quarter 2025 earnings: Revenues exceed analysts expectations while EPS lags behind Second quarter 2025 results: PK₨2.65 loss per share (further deteriorated from PK₨0.76 loss in 2Q 2024). Revenue: PK₨19.7b (up 11% from 2Q 2024). Net loss: PK₨2.41b (loss widened 249% from 2Q 2024). Revenue exceeded analyst estimates by 3.9%. Earnings per share (EPS) missed analyst estimates by 119%. Over the last 3 years on average, the company's share price growth rate has exceeded its earnings growth rate by 62 percentage points per year, which is a significant difference in performance. Reported Earnings • Aug 02
Second quarter 2025 earnings: Revenues exceed analysts expectations while EPS lags behind Second quarter 2025 results: PK₨2.65 loss per share (further deteriorated from PK₨0.76 loss in 2Q 2024). Revenue: PK₨19.7b (up 11% from 2Q 2024). Net loss: PK₨2.41b (loss widened 249% from 2Q 2024). Revenue exceeded analyst estimates by 3.9%. Earnings per share (EPS) missed analyst estimates by 119%. Over the last 3 years on average, the company's share price growth rate has exceeded its earnings growth rate by 57 percentage points per year, which is a significant difference in performance. New Risk • Jul 31
New minor risk - Market cap size The company's market capitalization is less than US$100m. Market cap: PK₨27.8b (US$98.0m) This is considered a minor risk. Companies with a small market capitalization are most likely businesses that have not yet released a product to market or are simply a very small company without a wide reach. Either way, risk is elevated with these companies because there is a chance the product may not come to fruition or the company's addressable market or demand may not be as large as expected. In addition, if the company's size is the main factor, it is less likely to have many investors and analysts following it and scrutinizing its performance and outlook. Currently, the following risks have been identified for the company: Major Risks Interest payments are not well covered by earnings (0.7x net interest cover). Earnings have declined by 13% per year over the past 5 years. Minor Risk Market cap is less than US$100m (PK₨27.8b market cap, or US$98.0m). Board Change • Jul 30
Less than half of directors are independent There are 5 new directors who have joined the board in the last 3 years. Of these new board members, 1 was an independent director. The company's board is composed of: 3 independent directors. 4 non-independent directors. Independent Director Kamran Nishat was the last independent director to join the board, commencing their role in 2023. The following issues are considered to be risks according to the Simply Wall St Risk Model: Minority of independent directors. Lack of board continuity. Board Change • Jul 14
Less than half of directors are independent There are 5 new directors who have joined the board in the last 3 years. Of these new board members, 1 was an independent director. The company's board is composed of: 3 independent directors. 4 non-independent directors. Independent Director Kamran Nishat was the last independent director to join the board, commencing their role in 2023. The following issues are considered to be risks according to the Simply Wall St Risk Model: Minority of independent directors. Lack of board continuity. New Risk • Jun 23
New minor risk - Market cap size The company's market capitalization is less than US$100m. Market cap: PK₨27.5b (US$96.8m) This is considered a minor risk. Companies with a small market capitalization are most likely businesses that have not yet released a product to market or are simply a very small company without a wide reach. Either way, risk is elevated with these companies because there is a chance the product may not come to fruition or the company's addressable market or demand may not be as large as expected. In addition, if the company's size is the main factor, it is less likely to have many investors and analysts following it and scrutinizing its performance and outlook. Currently, the following risks have been identified for the company: Major Risks Interest payments are not well covered by earnings (0.7x net interest cover). Earnings have declined by 13% per year over the past 5 years. Minor Risk Market cap is less than US$100m (PK₨27.5b market cap, or US$96.8m). New Risk • Apr 25
New minor risk - Market cap size The company's market capitalization is less than US$100m. Market cap: PK₨27.4b (US$97.6m) This is considered a minor risk. Companies with a small market capitalization are most likely businesses that have not yet released a product to market or are simply a very small company without a wide reach. Either way, risk is elevated with these companies because there is a chance the product may not come to fruition or the company's addressable market or demand may not be as large as expected. In addition, if the company's size is the main factor, it is less likely to have many investors and analysts following it and scrutinizing its performance and outlook. Currently, the following risks have been identified for the company: Major Risks Interest payments are not well covered by earnings (0.7x net interest cover). Earnings have declined by 13% per year over the past 5 years. Minor Risk Market cap is less than US$100m (PK₨27.4b market cap, or US$97.6m). Reported Earnings • Apr 20
First quarter 2025 earnings: EPS misses analyst expectations First quarter 2025 results: PK₨0.91 loss per share (improved from PK₨1.21 loss in 1Q 2024). Revenue: PK₨17.9b (up 7.8% from 1Q 2024). Net loss: PK₨824.6m (loss narrowed 8.5% from 1Q 2024). Revenue was in line with analyst estimates. Earnings per share (EPS) missed analyst estimates by 59%. Over the last 3 years on average, the company's share price growth rate has exceeded its earnings growth rate by 45 percentage points per year, which is a significant difference in performance. New Risk • Feb 15
New major risk - Revenue and earnings growth Earnings have declined by 4.7% per year over the past 5 years. This is considered a major risk. Ultimately, shareholders want to see a good return on their investment and that generally comes from sharing in the company's profits. If profits are declining over an extended period, then in most cases the share price will decline over time unless the company can turn around its fortunes. A trend of falling earnings can be very difficult to turn around. If the company is well already established it may also be a sign the company has matured and is in decline. In addition, if the company pays dividends it will also likely need to reduce or cut them, striking a dual blow to total shareholder returns. Currently, the following risks have been identified for the company: Major Risks Interest payments are not well covered by earnings (0.6x net interest cover). Earnings have declined by 4.7% per year over the past 5 years. Announcement • Feb 13
Engro Polymer and Chemicals Limited, Annual General Meeting, Mar 26, 2025 Engro Polymer and Chemicals Limited, Annual General Meeting, Mar 26, 2025. Valuation Update With 7 Day Price Move • Nov 06
Investor sentiment improves as stock rises 19% After last week's 19% share price gain to PK₨37.81, the stock trades at a forward P/E ratio of 12x. Average forward P/E is 7x in the Chemicals industry in Pakistan. Total loss to shareholders of 1.7% over the past three years. Reported Earnings • Oct 25
Third quarter 2024 earnings: Revenues exceed analysts expectations while EPS lags behind Third quarter 2024 results: PK₨0.77 loss per share (down from PK₨2.74 profit in 3Q 2023). Revenue: PK₨20.1b (down 20% from 3Q 2023). Net loss: PK₨698.4m (down 126% from profit in 3Q 2023). Revenue exceeded analyst estimates by 14%. Earnings per share (EPS) missed analyst estimates by 79%. Revenue is forecast to grow 12% p.a. on average during the next 2 years, compared to a 6.8% growth forecast for the Chemicals industry in Pakistan. Over the last 3 years on average, earnings per share has fallen by 46% per year but the company’s share price has only fallen by 19% per year, which means it has not declined as severely as earnings. Price Target Changed • Aug 22
Price target decreased by 8.5% to PK₨47.18 Down from PK₨51.58, the current price target is an average from 5 analysts. New target price is 25% above last closing price of PK₨37.75. Stock is down 10% over the past year. The company is forecast to post a net loss per share of PK₨0.91 compared to earnings per share of PK₨9.12 last year. Reported Earnings • Aug 21
Second quarter 2024 earnings released: PK₨0.76 loss per share (vs PK₨1.39 profit in 2Q 2023) Second quarter 2024 results: PK₨0.76 loss per share (down from PK₨1.39 profit in 2Q 2023). Revenue: PK₨17.8b (down 6.5% from 2Q 2023). Net loss: PK₨688.4m (down 144% from profit in 2Q 2023). Revenue is forecast to grow 6.1% p.a. on average during the next 2 years, compared to a 7.9% growth forecast for the Chemicals industry in Pakistan. Over the last 3 years on average, earnings per share has fallen by 33% per year but the company’s share price has only fallen by 15% per year, which means it has not declined as severely as earnings. Reported Earnings • Aug 20
Second quarter 2024 earnings released: PK₨0.76 loss per share (vs PK₨1.39 profit in 2Q 2023) Second quarter 2024 results: PK₨0.76 loss per share (down from PK₨1.39 profit in 2Q 2023). Revenue: PK₨17.8b (down 6.5% from 2Q 2023). Net loss: PK₨688.4m (down 144% from profit in 2Q 2023). Over the last 3 years on average, earnings per share has fallen by 33% per year but the company’s share price has only fallen by 15% per year, which means it has not declined as severely as earnings. Board Change • Jun 20
Less than half of directors are independent There are 5 new directors who have joined the board in the last 3 years. Of these new board members, 1 was an independent director. The company's board is composed of: 3 independent directors. 4 non-independent directors. Independent Director Kamran Nishat was the last independent director to join the board, commencing their role in 2023. The following issues are considered to be risks according to the Simply Wall St Risk Model: Minority of independent directors. Lack of board continuity. Reported Earnings • May 10
First quarter 2024 earnings released: PK₨1.21 loss per share (vs PK₨1.30 profit in 1Q 2023) First quarter 2024 results: PK₨1.21 loss per share (down from PK₨1.30 profit in 1Q 2023). Revenue: PK₨16.6b (down 7.8% from 1Q 2023). Net loss: PK₨901.2m (down 176% from profit in 1Q 2023). Over the last 3 years on average, earnings per share has fallen by 23% per year but the company’s share price has only fallen by 5% per year, which means it has not declined as severely as earnings. Upcoming Dividend • Mar 12
Upcoming dividend of PK₨1.00 per share Eligible shareholders must have bought the stock before 19 March 2024. Payment date: 29 March 2024. Payout ratio is a comfortable 66% but the company is not cash flow positive. Trailing yield: 14%. Within top quartile of Pakistani dividend payers (13%). Higher than average of industry peers (11%). Reported Earnings • Mar 10
Full year 2023 earnings released: EPS: PK₨9.12 (vs PK₨12.37 in FY 2022) Full year 2023 results: EPS: PK₨9.12 (down from PK₨12.37 in FY 2022). Revenue: PK₨81.3b (down 1.0% from FY 2022). Net income: PK₨8.29b (down 26% from FY 2022). Profit margin: 10% (down from 14% in FY 2022). Over the last 3 years on average, earnings per share has fallen by 10% per year but the company’s share price has only fallen by 2% per year, which means it has not declined as severely as earnings. Price Target Changed • Feb 19
Price target increased by 8.8% to PK₨52.45 Up from PK₨48.23, the current price target is an average from 4 analysts. New target price is 17% above last closing price of PK₨44.68. Stock is down 3.2% over the past year. The company is forecast to post earnings per share of PK₨7.08 for next year compared to PK₨12.37 last year. New Risk • Oct 25
New minor risk - Financial position The company has a high level of debt. Net debt to equity ratio: 47% This is considered a minor risk. Having a high level of debt increases the company's balance sheet risk. The company has a higher interest repayment burden, leading to the need to allocate a greater amount of its earnings towards servicing the debt, potentially limiting growth options or shareholder distributions. It can also increase the risk of bankruptcy if business conditions deteriorate enough that the company can no longer meet its debt obligations. Currently, the following risks have been identified for the company: Major Risk Dividend is not well covered by earnings and cash flows. Payout ratio: 97% Dividend per share is over 7x cash flows per share. Minor Risks High level of debt (47% net debt to equity). Profit margins are more than 30% lower than last year (8.9% net profit margin). Reported Earnings • Oct 22
Third quarter 2023 earnings released: EPS: PK₨2.74 (vs PK₨2.36 in 3Q 2022) Third quarter 2023 results: EPS: PK₨2.74 (up from PK₨2.36 in 3Q 2022). Revenue: PK₨25.0b (up 48% from 3Q 2022). Net income: PK₨2.64b (up 17% from 3Q 2022). Profit margin: 11% (down from 13% in 3Q 2022). The decrease in margin was driven by higher expenses. Revenue is forecast to grow 11% p.a. on average during the next 2 years, compared to a 12% growth forecast for the Chemicals industry in Asia. Over the last 3 years on average, earnings per share has increased by 3% per year whereas the company’s share price has remained flat. New Risk • Aug 17
New minor risk - Financial position The company has a high level of debt. Net debt to equity ratio: 46% This is considered a minor risk. Having a high level of debt increases the company's balance sheet risk. The company has a higher interest repayment burden, leading to the need to allocate a greater amount of its earnings towards servicing the debt, potentially limiting growth options or shareholder distributions. It can also increase the risk of bankruptcy if business conditions deteriorate enough that the company can no longer meet its debt obligations. Currently, the following risks have been identified for the company: Major Risk Dividend is not well covered by earnings and cash flows. Payout ratio: 103% Dividend per share is over 20x cash flows per share. Minor Risks High level of debt (46% net debt to equity). Profit margins are more than 30% lower than last year (9.4% net profit margin). Reported Earnings • Aug 15
Second quarter 2023 earnings: EPS and revenues exceed analyst expectations Second quarter 2023 results: EPS: PK₨1.39 (down from PK₨2.45 in 2Q 2022). Revenue: PK₨19.0b (down 14% from 2Q 2022). Net income: PK₨1.56b (down 33% from 2Q 2022). Profit margin: 8.2% (down from 11% in 2Q 2022). The decrease in margin was driven by lower revenue. Revenue exceeded analyst estimates by 6.4%. Earnings per share (EPS) also surpassed analyst estimates by 8.6%. Revenue is forecast to grow 15% p.a. on average during the next 2 years, compared to a 7.8% growth forecast for the Chemicals industry in Pakistan. Over the last 3 years on average, earnings per share has increased by 19% per year but the company’s share price has only increased by 10% per year, which means it is significantly lagging earnings growth. Price Target Changed • May 11
Price target decreased by 8.5% to PK₨47.29 Down from PK₨51.70, the current price target is an average from 6 analysts. New target price is 7.6% above last closing price of PK₨43.97. Stock is down 43% over the past year. The company is forecast to post earnings per share of PK₨6.80 for next year compared to PK₨12.37 last year. Reported Earnings • Apr 21
First quarter 2023 earnings: EPS and revenues miss analyst expectations First quarter 2023 results: EPS: PK₨0.98 (down from PK₨5.19 in 1Q 2022). Revenue: PK₨18.0b (down 22% from 1Q 2022). Net income: PK₨1.18b (down 75% from 1Q 2022). Profit margin: 6.6% (down from 20% in 1Q 2022). The decrease in margin was driven by lower revenue. Revenue missed analyst estimates by 10%. Earnings per share (EPS) also missed analyst estimates by 13%. Revenue is forecast to grow 8.2% p.a. on average during the next 2 years, compared to a 10% growth forecast for the Chemicals industry in Asia. Over the last 3 years on average, earnings per share has increased by 35% per year but the company’s share price has only increased by 18% per year, which means it is significantly lagging earnings growth. Upcoming Dividend • Apr 20
Upcoming dividend of PK₨1.00 per share at 27% yield Eligible shareholders must have bought the stock before 27 April 2023. Payment date: 22 May 2023. Trailing yield: 27%. Within top quartile of Pakistani dividend payers (13%). Higher than average of industry peers (14%). Upcoming Dividend • Apr 07
Upcoming dividend of PK₨2.50 per share at 25% yield Eligible shareholders must have bought the stock before 14 April 2023. Payment date: 17 May 2023. Trailing yield: 25%. Within top quartile of Pakistani dividend payers (13%). Higher than average of industry peers (14%). Price Target Changed • Mar 29
Price target decreased by 11% to PK₨51.70 Down from PK₨58.06, the current price target is an average from 5 analysts. New target price is 13% above last closing price of PK₨45.86. Stock is down 27% over the past year. The company is forecast to post earnings per share of PK₨8.29 for next year compared to PK₨12.37 last year. Price Target Changed • Jan 22
Price target decreased to PK₨58.06 Down from PK₨64.34, the current price target is an average from 8 analysts. New target price is 39% above last closing price of PK₨41.68. Stock is down 26% over the past year. The company is forecast to post earnings per share of PK₨12.12 for next year compared to PK₨16.28 last year. Buying Opportunity • Dec 19
Now 24% undervalued after recent price drop Over the last 90 days, the stock is down 25%. The fair value is estimated to be PK₨56.12, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 36% over the last 3 years. Earnings per share has grown by 56%. For the next 3 years, revenue is forecast to grow by 4.0% per annum. Earnings is forecast to decline by 6.8% per annum over the same time period. Board Change • Nov 16
Less than half of directors are independent There are 5 new directors who have joined the board in the last 3 years. Of these new board members, 2 were independent directors. The company's board is composed of: 3 independent directors. 6 non-independent directors. Independent Director Ayesha Aziz was the last independent director to join the board, commencing their role in 2020. The following issues are considered to be risks according to the Simply Wall St Risk Model: Minority of independent directors. Lack of board continuity. Upcoming Dividend • Oct 17
Upcoming dividend of PK₨2.50 per share Eligible shareholders must have bought the stock before 24 October 2022. Payment date: 16 November 2022. The company is paying out more than 100% of its profits but is generating plenty of cash to support the dividend. Trailing yield: 28%. Within top quartile of Pakistani dividend payers (12%). Higher than average of industry peers (12%). Reported Earnings • Oct 16
Third quarter 2022 earnings: Revenues exceed analysts expectations while EPS lags behind Third quarter 2022 results: EPS: PK₨2.36 (down from PK₨3.42 in 3Q 2021). Revenue: PK₨16.9b (down 10% from 3Q 2021). Net income: PK₨2.26b (down 27% from 3Q 2021). Profit margin: 13% (down from 17% in 3Q 2021). The decrease in margin was driven by lower revenue. Revenue exceeded analyst estimates by 4.4%. Earnings per share (EPS) missed analyst estimates by 11%. Revenue is forecast to grow 4.0% p.a. on average during the next 3 years, compared to a 10% growth forecast for the Chemicals industry in Asia. Over the last 3 years on average, earnings per share has increased by 56% per year but the company’s share price has only increased by 28% per year, which means it is significantly lagging earnings growth. Reported Earnings • Aug 14
Second quarter 2022 earnings: Revenues exceed analysts expectations while EPS lags behind Second quarter 2022 results: EPS: PK₨2.45 (down from PK₨3.44 in 2Q 2021). Revenue: PK₨22.3b (up 50% from 2Q 2021). Net income: PK₨2.34b (down 25% from 2Q 2021). Profit margin: 11% (down from 21% in 2Q 2021). The decrease in margin was driven by higher expenses. Revenue exceeded analyst estimates by 6.1%. Earnings per share (EPS) missed analyst estimates by 14%. Over the next year, revenue is expected to shrink by 3.7% compared to a 23% growth forecast for the industry in Pakistan. Over the last 3 years on average, earnings per share has increased by 61% per year but the company’s share price has only increased by 48% per year, which means it is significantly lagging earnings growth. Valuation Update With 7 Day Price Move • Jul 21
Investor sentiment deteriorated over the past week After last week's 16% share price decline to PK₨65.02, the stock trades at a forward P/E ratio of 6x. Average forward P/E is 6x in the Chemicals industry in Pakistan. Total returns to shareholders of 258% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at PK₨80.57 per share. Valuation Update With 7 Day Price Move • May 19
Investor sentiment improved over the past week After last week's 15% share price gain to PK₨89.08, the stock trades at a forward P/E ratio of 8x. Average forward P/E is 6x in the Chemicals industry in Pakistan. Total returns to shareholders of 440% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at PK₨77.70 per share. Reported Earnings • May 03
First quarter 2022 earnings: EPS and revenues exceed analyst expectations First quarter 2022 results: EPS: PK₨5.19 (up from PK₨4.56 in 1Q 2021). Revenue: PK₨23.1b (up 48% from 1Q 2021). Net income: PK₨4.71b (up 14% from 1Q 2021). Profit margin: 20% (down from 26% in 1Q 2021). The decrease in margin was driven by higher expenses. Revenue exceeded analyst estimates by 26%. Earnings per share (EPS) also surpassed analyst estimates by 23%. Over the next year, revenue is expected to shrink by 41% compared to a 4.4% decline forecast for the industry in Pakistan. Over the last 3 years on average, earnings per share has increased by 60% per year but the company’s share price has only increased by 44% per year, which means it is significantly lagging earnings growth. Board Change • Apr 27
Less than half of directors are independent There are 6 new directors who have joined the board in the last 3 years. Of these new board members, 2 were independent directors. The company's board is composed of: 3 independent directors. 6 non-independent directors. Independent Director Ayesha Aziz was the last independent director to join the board, commencing their role in 2020. The following issues are considered to be risks according to the Simply Wall St Risk Model: Minority of independent directors. Lack of board continuity. Reported Earnings • Apr 20
First quarter 2022 earnings: Revenues exceed analysts expectations while EPS lags behind First quarter 2022 results: EPS: PK₨5.19 (up from PK₨4.56 in 1Q 2021). Revenue: PK₨23.1b (up 48% from 1Q 2021). Net income: PK₨4.71b (up 14% from 1Q 2021). Profit margin: 20% (down from 26% in 1Q 2021). The decrease in margin was driven by higher expenses. Revenue exceeded analyst estimates by 31%. Earnings per share (EPS) missed analyst estimates by 25%. Over the next year, revenue is forecast to decline by 41% while the industry in Pakistan is not expected to grow. Over the last 3 years on average, earnings per share has increased by 60% per year but the company’s share price has only increased by 41% per year, which means it is significantly lagging earnings growth. Valuation Update With 7 Day Price Move • Apr 06
Investor sentiment improved over the past week After last week's 19% share price gain to PK₨75.15, the stock trades at a forward P/E ratio of 7x. Average forward P/E is 6x in the Chemicals industry in Pakistan. Total returns to shareholders of 229% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at PK₨65.81 per share. Upcoming Dividend • Feb 28
Upcoming dividend of PK₨5.50 per share Eligible shareholders must have bought the stock before 07 March 2022. Payment date: 07 April 2022. Payout ratio is on the higher end at 78%, however this is supported by cash flows. Trailing yield: 17%. Within top quartile of Pakistani dividend payers (9.8%). Higher than average of industry peers (11%). Reported Earnings • Oct 20
Third quarter 2021 earnings released: EPS PK₨3.42 (vs PK₨2.07 in 3Q 2020) The company reported a solid third quarter result with improved earnings and revenues, although profit margins were weaker. Third quarter 2021 results: Revenue: PK₨18.8b (up 87% from 3Q 2020). Net income: PK₨3.11b (up 65% from 3Q 2020). Profit margin: 17% (down from 19% in 3Q 2020). The decrease in margin was driven by higher expenses. Over the last 3 years on average, earnings per share has increased by 42% per year but the company’s share price has only increased by 21% per year, which means it is significantly lagging earnings growth. Upcoming Dividend • Sep 01
Upcoming dividend of PK₨7.00 per share Eligible shareholders must have bought the stock before 08 September 2021. Payment date: 01 October 2021. Trailing yield: 12%. Within top quartile of Pakistani dividend payers (9.2%). Higher than average of industry peers (10%). Reported Earnings • Aug 13
Second quarter 2021 earnings released: EPS PK₨3.44 (vs PK₨0.03 in 2Q 2020) The company reported a strong second quarter result with improved earnings, revenues and profit margins. Second quarter 2021 results: Revenue: PK₨14.8b (up 155% from 2Q 2020). Net income: PK₨3.12b (up PK₨3.09b from 2Q 2020). Profit margin: 21% (up from 0.5% in 2Q 2020). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has increased by 26% per year but the company’s share price has only increased by 18% per year, which means it is significantly lagging earnings growth. Upcoming Dividend • Jun 03
Upcoming dividend of PK₨0.80 per share Eligible shareholders must have bought the stock before 10 June 2021. Payment date: 05 July 2021. Trailing yield: 2.5%. Lower than top quartile of Pakistani dividend payers (8.6%). Lower than average of industry peers (8.4%). Reported Earnings • Apr 20
First quarter 2021 earnings released: EPS PK₨4.56 (vs PK₨0.21 in 1Q 2020) The company reported a strong first quarter result with improved earnings, revenues and profit margins. First quarter 2021 results: Revenue: PK₨15.7b (up 122% from 1Q 2020). Net income: PK₨4.14b (up PK₨3.95b from 1Q 2020). Profit margin: 26% (up from 2.7% in 1Q 2020). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has increased by 8% per year whereas the company’s share price has increased by 13% per year. Major Estimate Revision • Apr 19
Consensus forecasts updated The consensus outlook for 2021 has been updated. 2021 EPS estimate increased from PK₨11.05 to PK₨12.40. Revenue forecast unchanged at PK₨54.4b. Net income forecast to grow 88% next year vs 19% growth forecast for Chemicals industry in Pakistan. Consensus price target up from PK₨60.26 to PK₨62.28. Share price was steady at PK₨56.57 over the past week. Major Estimate Revision • Apr 17
Consensus forecasts updated The consensus outlook for 2021 has been updated. 2021 EPS estimate increased from PK₨10.03 to PK₨11.61. Revenue forecast unchanged at PK₨54.4b. Net income forecast to grow 88% next year vs 19% growth forecast for Chemicals industry in Pakistan. Consensus price target up from PK₨58.46 to PK₨61.09. Share price was steady at PK₨58.00 over the past week. Executive Departure • Apr 09
Director has left the company On the 31st of March, Noriyuki Koga's tenure as Director ended after 4.0 years in the role. As of December 2020, Noriyuki personally held only 1.00 share (PK₨47.0 worth at the time). A total of 3 executives have left over the last 12 months. Major Estimate Revision • Mar 31
Consensus forecasts updated The consensus outlook for 2021 has been updated. 2021 revenue forecast increased from PK₨46.5b to PK₨56.6b. EPS estimate unchanged from PK₨9.20 at last update. Chemicals industry in Pakistan expected to see average net income growth of 0.2% next year. Consensus price target up from PK₨55.53 to PK₨58.49. Share price rose 2.8% to PK₨54.99 over the past week. Upcoming Dividend • Mar 25
Upcoming dividend of PK₨1.25 per share Eligible shareholders must have bought the stock before 01 April 2021. Payment date: 29 April 2021. Trailing yield: 2.3%. Lower than top quartile of Pakistani dividend payers (8.7%). Lower than average of industry peers (8.6%). Reported Earnings • Mar 18
Full year 2020 earnings released The company reported a decent full year result with improved earnings and profit margins, although revenues were weaker. Full year 2020 results: Revenue: PK₨35.3b (down 6.6% from FY 2019). Net income: PK₨5.73b (up 55% from FY 2019). Profit margin: 16% (up from 9.8% in FY 2019). Over the last 3 years on average, earnings per share has fallen by 14% per year but the company’s share price has increased by 17% per year, which means it is well ahead of earnings. Executive Departure • Mar 11
Chief Financial Officer has left the company On the 8th of March, Syed Raza's tenure as Chief Financial Officer ended after 3.1 years in the role. We don't have any record of a personal shareholding under Syed's name. A total of 2 executives have left over the last 12 months. Is New 90 Day High Low • Mar 01
New 90-day high: PK₨52.44 The company is up 17% from its price of PK₨44.94 on 01 December 2020. The Pakistani market is up 8.0% over the last 90 days, indicating the company outperformed over that time. It also outperformed the Chemicals industry, which is up 6.0% over the same period. According to the Simply Wall St valuation model, the estimated intrinsic value of the company is PK₨41.64 per share. Major Estimate Revision • Feb 18
Analysts update estimates The 2021 consensus earning per share (EPS) estimate increased from PK₨6.51 to PK₨7.96. No change was made to the revenue estimate which at the last update was PK₨46.5b. Net income is expected to grow by 0.2% next year compared to 24% decline forecast for the Chemicals industry in Pakistan. The consensus price target increased from PK₨55.16 to PK₨55.35. Share price stayed mostly flat at PK₨48.01 over the past week. Reported Earnings • Feb 12
Full year 2020 earnings released: EPS PK₨6.30 (vs PK₨4.07 in FY 2019) The company reported a decent full year result with improved earnings and profit margins, although revenues were weaker. Full year 2020 results: Revenue: PK₨35.3b (down 6.6% from FY 2019). Net income: PK₨5.73b (up 55% from FY 2019). Profit margin: 16% (up from 9.8% in FY 2019). The increase in margin was driven by lower expenses. Over the last 3 years on average, earnings per share has fallen by 5% per year but the company’s share price has increased by 19% per year, which means it is well ahead of earnings. Analyst Estimate Surprise Post Earnings • Feb 12
Revenue and earnings beat expectations Revenue exceeded analyst estimates by 1.3%. Earnings per share (EPS) also surpassed analyst estimates by 17%. Over the next year, revenue is forecast to grow 32%, compared to a 1.6% growth forecast for the Chemicals industry in Pakistan. Is New 90 Day High Low • Feb 01
New 90-day high: PK₨50.29 The company is up 15% from its price of PK₨43.68 on 03 November 2020. The Pakistani market is also up 15% over the last 90 days, indicating the company’s price trend is similar to the market over that time. However, it outperformed the Chemicals industry, which is up 8.0% over the same period. According to the Simply Wall St valuation model, the estimated intrinsic value of the company is PK₨41.88 per share. Major Estimate Revision • Jan 23
Analysts update estimates The 2020 consensus earning per share (EPS) estimate increased from PK₨4.74 to PK₨5.26. Revenue estimate for the same period was approximately flat at PK₨34.4b. Net income is expected to grow by 84% next year compared to 18% decline forecast for the Chemicals industry in Pakistan. The consensus price target increased from PK₨52.27 to PK₨53.38. Share price is down by 1.1% to PK₨47.74 over the past week. Is New 90 Day High Low • Jan 06
New 90-day high: PK₨50.05 The company is up 14% from its price of PK₨44.02 on 08 October 2020. The Pakistani market is up 9.0% over the last 90 days, indicating the company outperformed over that time. It also outperformed the Chemicals industry, which is up 5.0% over the same period. According to the Simply Wall St valuation model, the estimated intrinsic value of the company is PK₨38.68 per share. Is New 90 Day High Low • Dec 09
New 90-day high: PK₨47.26 The company is up 16% from its price of PK₨40.75 on 10 September 2020. The Pakistani market is down 2.0% over the last 90 days, indicating the company outperformed over that time. It also outperformed the Chemicals industry, which is down 3.0% over the same period. According to the Simply Wall St valuation model, the estimated intrinsic value of the company is PK₨37.96 per share. Price Target Changed • Nov 22
Price target raised to PK₨50.10 Up from PK₨45.63, the current price target is an average from 4 analysts. The new target price is 14% above the current share price of PK₨44.08. As of last close, the stock is up 45% over the past year. Major Estimate Revision • Nov 19
Analysts update estimates The 2020 consensus earning per share (EPS) estimate increased from PK₨3.52 to PK₨4.34. No change was made to the revenue estimate which at the last update was PK₨31.9b. Net income is expected to grow by 45% next year compared to 32% growth forecast for the Chemicals industry in Pakistan. The consensus price target increased from PK₨45.63 to PK₨48.12. Share price is up 2.6% to PK₨43.62 over the past week. Price Target Changed • Nov 12
Price target raised to PK₨46.36 Up from PK₨43.00, the current price target is an average from 4 analysts. The new target price is 9.0% above the current share price of PK₨42.52. As of last close, the stock is up 38% over the past year. Analyst Estimate Surprise Post Earnings • Nov 03
Revenue and earnings beat expectations Revenue exceeded analyst estimates by 8.2%. Earnings per share (EPS) also surpassed analyst estimates by 30%. Over the next year, revenue is forecast to grow 18% compared to a 5.3% decline forecast for the Chemicals industry in Pakistan. Reported Earnings • Nov 03
Third quarter 2020 earnings released: EPS PK₨2.07 The company reported a strong third quarter result with improved earnings, revenues and profit margins. Third quarter 2020 results: Revenue: PK₨10.1b (up 8.9% from 3Q 2019). Net income: PK₨1.88b (up 48% from 3Q 2019). Profit margin: 19% (up from 14% in 3Q 2019). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has fallen by 10% per year but the company’s share price has increased by 7% per year, which means it is well ahead of earnings. Major Estimate Revision • Oct 22
Analysts update estimates The 2020 consensus earning per share (EPS) estimate increased from PK₨2.47 to PK₨3.52. No change was made to the revenue estimate which at the last update was PK₨30.4b. Net income is expected to grow by 23% next year compared to 27% growth forecast for the Chemicals industry in Pakistan. The consensus price target increased from PK₨43.00 to PK₨45.60. Share price is down by 1.4% to PK₨45.74 over the past week. Reported Earnings • Oct 17
Third quarter earnings released Over the last 12 months the company has reported total profits of PK₨2.98b, down 23% from the prior year. Total revenue was PK₨32.9b over the last 12 months, down 12% from the prior year. Is New 90 Day High Low • Oct 16
New 90-day high: PK₨46.49 The company is up 48% from its price of PK₨31.46 on 17 July 2020. The Pakistani market is up 5.0% over the last 90 days, indicating the company outperformed over that time. It also outperformed the Chemicals industry, which is flat over the same period. According to the Simply Wall St valuation model, the estimated intrinsic value of the company is PK₨38.26 per share. Price Target Changed • Oct 15
Price target raised to PK₨43.00 Up from PK₨39.75, the current price target is an average from 3 analysts. The new target price is close to the current share price of PK₨43.18. As of last close, the stock is up 55% over the past year. Announcement • Oct 04
Engro Polymer and Chemicals Limited to Report Fiscal Year 2020 Results on Oct 15, 2020 Engro Polymer and Chemicals Limited announced that they will report fiscal year 2020 results on Oct 15, 2020 Is New 90 Day High Low • Sep 22
New 90-day high: PK₨44.54 The company is up 75% from its price of PK₨25.47 on 24 June 2020. The Pakistani market is up 21% over the last 90 days, indicating the company outperformed over that time. It also outperformed the Chemicals industry, which is up 11% over the same period. According to the Simply Wall St valuation model, the estimated intrinsic value of the company is PK₨37.10 per share. Announcement • Jul 25
Engro Polymer and Chemicals Limited to Report First Half, 2020 Results on Aug 07, 2020 Engro Polymer and Chemicals Limited announced that they will report first half, 2020 results on Aug 07, 2020