Engro Polymer & ChemicalsKAR:EPCL 52 Gross Margin % is 11.47% as of Mar. 2026, which is 47% below its 10-year median of 21.72. GuruFocus rates KAR:EPCL with a GF Score™ of 52/100 and a GF Value™ of ₨46.26 (Modestly Undervalued). The stock has 10 warning signs investors should review. Among 1,561 Chemicals companies, Engro Polymer & Chemicals ranks worse than 87.7% on this metric.
Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.
Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %
1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key
Engro Polymer & Chemicals had a gross margin of 11.47% for the quarter that ended in Mar. 2026 => No sustainable competitive advantage
Be Aware
If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.
Engro Polymer & Chemicals Gross Margin % Related Terms
Engro Polymer & Chemicals Gross Margin % Historical Data
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
KAR:EPCL vs LIN, SHW, ECL: Gross Margin % Comparison
For the Specialty Chemicals subindustry, Engro Polymer & Chemicals's Gross Margin %, along with its competitors' market caps and Gross Margin % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Engro Polymer & Chemicals Gross Margin % vs Chemicals Industry
For the Chemicals industry and Basic Materials sector, Engro Polymer & Chemicals's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Engro Polymer & Chemicals's Gross Margin % falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.
Engro Polymer & Chemicals (KAR:EPCL) has a Gross Margin % of 11.47% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Engro Polymer & Chemicals and its competitors. This is 47% below median its historical median of 21.72. Over the past decade, Engro Polymer & Chemicals' Gross Margin % has ranged from 6.19 to 34.33. According to the industry distribution chart, Engro Polymer & Chemicals ranks #1369 out of 1561 companies in the Chemicals industry, placing it in the top 87.7%.
Is Engro Polymer & Chemicals' Gross Margin % too high?
Engro Polymer & Chemicals' current Gross Margin % of 11.47% is 47% below median its 10-year median of 21.72. Over the past 10 years, this metric has ranged from a low of 6.19 to a high of 34.33. The Chemicals industry median Gross Margin % is 23.35. Engro Polymer & Chemicals' value of 11.47% is 50.9% below this industry median. Based on the distribution chart, Engro Polymer & Chemicals ranks #1369 out of 1561 companies in the Chemicals industry, which is in the bottom quartile relative to peers. Overall, Engro Polymer & Chemicals has a GF Score™ of 52/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Engro Polymer & Chemicals' Gross Margin % compare to LIN and SHW?
According to the Chemicals industry distribution chart, Engro Polymer & Chemicals ranks #1369 out of 1561 companies for Gross Margin %. This places Engro Polymer & Chemicals in the lower half of its industry. The industry median Gross Margin % is 23.35. Engro Polymer & Chemicals' value of 11.47% is 50.9% below this benchmark. Historically, Engro Polymer & Chemicals' own Gross Margin % has ranged from 6.19 to 34.33 over the past decade. While the company's 10-year median is 21.72 vs. the industry median of 23.35, Engro Polymer & Chemicals has consistently been below the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Gross Margin % for a Chemicals company?
The median Gross Margin % among Chemicals companies is 23.35, based on 1,561 companies in the industry. Companies in the top quartile (top 25%) have a Gross Margin % significantly above this median, while those in the bottom quartile fall well below. However, Gross Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Engro Polymer & Chemicals's current Gross Margin % of 11.47% is 50.9% below the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Gross Margin % mean?
A high Gross Margin % can signal that a stock is expensive relative to its fundamentals. Gross margin is the ratio of total gross profit to net sales. View historical data on Engro Polymer & Chemicals and its competitors. For the Chemicals industry, the median Gross Margin % is 23.35 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Engro Polymer & Chemicals's current Gross Margin % is 11.47%, which is 47% below median its own 10-year median of 21.72. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Engro Polymer & Chemicals stock overvalued right now?
Based on GuruFocus' analysis, Engro Polymer & Chemicals (KAR:EPCL) is currently considered Modestly Undervalued. The stock's GF Value™ is ₨46.26, compared to a current price of ₨34.32 — trading 25.8% below its estimated fair value. The current Gross Margin % is 11.47%, which is 47% below median its 10-year median of 21.72 and 50.9% below the Chemicals industry median of 23.35. Engro Polymer & Chemicals' overall GF Score™ is 52/100 with 10 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Gross Margin % calculated?
Gross Margin % is calculated from a company's financial statements. For Engro Polymer & Chemicals (KAR:EPCL), the current Gross Margin % is 11.47% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Engro Polymer & Chemicals (KAR:EPCL) Overvalued in 2026?
Based on GuruFocus' analysis, Engro Polymer & Chemicals stock appears to be undervalued.
The current stock price of ₨34.32 is trading 25.8% below its estimated GF Value™ of ₨46.26.
GuruFocus considers Engro Polymer & Chemicals to be Modestly Undervalued.
Key valuation signals for KAR:EPCL:
Gross Margin %: 11.47% (47% below median its 10-year median of 21.72)
GF Value™: ₨46.26 vs. price of ₨34.32 (25.8% below fair value)
Industry Position: 50.9% below the Chemicals median (#1369 of 1561)
No single metric tells the full story. See the KAR:EPCL stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Engro Polymer & Chemicals Ltd is mainly engaged in the production and distribution of chlor-vinyl products, including Polyvinyl Chloride (PVC), caustic soda, hydrogen peroxide, and other industrial chemicals such as hydrochloric acid and sodium hypochlorite. The Company operates through multiple segments, with the Poly Vinyl Chloride (PVC) segment generating the highest revenue by supplying products to industries such as pipes, footwear, and packaging across Pakistan and exporting mainly to Asia. Its Caustic Soda and Allied Chemicals segment serves textile and soap industries, while the Hydrogen Peroxide segment mainly caters to the textile sector, and the Power Supplies segment supplies surplus power generated from its power plants.
52GF Score
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