Target: ₹7,586
CMP: ₹6,018.15
Kingfa Science & Technology (India) Ltd (Kingfa) is one of India’s leading polymer compounders. The company manufactures modified plastics, mainly polypropylene, by adding minerals, dyes, pigments and other additives to improve properties such as strength, heat resistance and durability. These customised compounds are supplied across automotive, consumer durables, electrical and industrial applications.
It operates primarily on a B2B model and its product reach includes leading OEMs such as Tata Motors, Mahindra, Renault, Nissan, Volvo and Audi. Automotive contributed about 74 per cent of FY26 revenue, while the remaining 26 per cent came from home appliances, electricals and other industrial applications.
The company was incorporated as Hydro S&S Industries in November 1983 and later acquired by China-based Kingfa Science & Technology in May 2013, which currently holds a about 67 per cent stake.
We expect Kingfa’s revenue to grow at about 17 per cent CAGR over FY26-29E, supported by healthy volume growth, a better product mix and margin improvement from incremental sourcing of raw materials from the domestic market. The company’s plan to expand capacity to about 0.6 MMTPA by 2030 provides further visibility on future growth.
We initiate coverage on Kingfa Science with a Buy rating and value the company at 35x FY28E P/E, arriving at a target price of ₹7,586.