Epigral Stock Alert: China Policy Shift Could Drive 80% Growth, Says Emkay Research

• Emkay Research maintains a BUY rating on Epigral Limited (formerly Meghmani Finechem Ltd.) with a target price of Rs 2,000, indicating an 80% upside.
• China's decision to end 13% VAT rebates on PVC exports from April 1, 2026, is a major positive trigger, making Chinese PVC more expensive and improving global CPVC-PVC spreads.
• Epigral's CPVC resin and ECH capacity is set to double by September 2026, from 75,000 TPA to 1,50,000 TPA and 50,000 TPA to 1,00,000 TPA respectively, promising stronger revenue and margins.
• Financial projections show robust growth with Revenue CAGR of 14%, PAT CAGR of 9%, and EBITDA CAGR of 7% for FY25–28, with RoE estimated to reach 16.6% by FY28.
• Despite recent stock weakness, increased DII holding and the company's position as India's largest CPVC plant operator in Dahej, Gujarat, highlight its strong potential.

Why It Matters: China's policy change and Epigral's capacity expansion are set to significantly boost its stock, with an 80% upside predicted.