Does EPCL insider buying signal its bottom?

Earlier today, Engro Polymers and Chemicals Ltd (EPCL) reported a transaction by the Senior Management.

The transaction was carried out by Mr Nadir Salar Qureshi, who is a member of the Senior Management.

He bought a total of 50,000 shares of the company at a price of Rs. 43.41 per share. The total amount for this transaction stands at Rs. 6,414,800.

📢 Announcement: We're on WhatsApp – Join Us There! 

Here's what you get:

• Member-Only Discussion Community
• Research Reports with Explanations & Expert Views
• Access to Exclusive KSEStocks Market Reports
• Model Portfolio with Clear Investment Rationale
• Monthly Portfolio Review & Health Check
• On-Demand Stock Coverage Requests
• PSX Facilitation (CDC Account, Share Transfer, Physical Conversion)

EPCL announced its quarterly earnings recently and we covered why the EPCL stock fell afterwards. Its struggles are by no means over. But stocks usually bottom out well before the retail investor realizes the business environment has changed.

No recent development suggests the company’s difficult days are over. But when senior management buys stock in large quantities, something good may be around the corner.

Looking at the EPCL chart, one can see that the once resistance at Rs. 42 has now already been tested twice as a support level. It is now about to test that level again, something that will invite the investors’ attention in the next few days.

Don't miss:

• Which cars are driving the rally in auto stocks?
• Is DGKC going to Rs. 240?
• Why TPLP could go higher.

The company is expected to announce the completion of the new H2O2 plant soon and that could well be a positive trigger, even though H2O2 margins and demand are also currently struggling, just like PVC, which is EPCL’s main source of revenue.

The EPCL shares were last trading at Rs. 2,170,500 today.

⚠️ This post reflects the author’s personal opinion and is for informational purposes only. It does not constitute financial advice. Investing involves risk and should be done independently. Read full disclaimer →