1. At a Glance
A debt-light, margin-heavy chemical compounding machine with a Chinese parent and an Indian growth engine. Kingfa India may sound like just another polymer player, but it’s racking up 44% profit CAGR and sporting 30%+ ROCE. Is this the silent compounder you’ve been ignoring?
2. Introduction with Hook
Imagine if plastic got a gym membership, joined a PPE startup, and developed a six-pack margin — you’d get Kingfa. A no-nonsense, cash-efficient, bottom-line bulging manufacturer of modified plastics and PPEs, Kingfa has quietly gone from a ₹178 Cr topline in FY14 to ₹1,745 Cr in FY25.
- ROCE? 31%.
- Profit CAGR (5 yrs)? 44%.
- Debt? Almost extinct.
It’s like finding a Michelin-star chef flipping burgers in a food court — underappreciated and underpriced.
3. Business Model (WTF Do They Even Do?)
Kingfa India is the desi arm of Chinese giant Kingfa Sci & Tech, and they play in the sexy but overlooked segment of reinforced plastic compounds and performance polymers.
Product Segments:
- Modified Polypropylene (PP) Compounds
- Thermoplastic Elastomers (TPEs)
- Fiber-Reinforced Composites
- Personal Protective Equipment (PPE) — gloves, masks, and more
End-Use Industries:
- Automotive (biggest chunk)
- Electronics
- Consumer durables
- Healthcare (PPE play since 2020)
FY24 & FY25 added:
- Nitrile glove trading
- New safety SKUs in PPE division
They’re not just selling plastic. They’re selling performance-enhancing plastic.
4. Financials Overview
| Particulars | FY23 | FY24 | FY25 |
|---|---|---|---|
| Revenue (₹ Cr) | 1,404 | 1,488 | 1,745 |
| EBITDA (₹ Cr) | 128 | 185 | 225 |
| EBITDA Margin (%) | 9.1% | 12.4% | 12.9% |
| Net Profit (₹ Cr) | 81 | 123 | 153 |
| EPS (₹) | 67.22 | 101.17 | 126.22 |
| Dividend Payout (%) | 0% | 10% | 0% |
Kingfa’s P&L is doing cardio, weights, and intermittent fasting — lean and mean.
5. Valuation
The stock trades at a trailing P/E of 27.2 and P/B of 5.71 — but hold your scoffs, this isn’t a bubble.
- ROE: 23.2%
- ROCE: 30.6%
- Historical earnings growth: 44% CAGR (5Y)
Fair Value Range (Blended PE + DCF): ₹3,800 – ₹4,600
Current Price: ₹3,436 → Discount zone. Welcome aboard, value growth seekers.
6. What’s Cooking – News, Triggers, Drama
- Resignation of CS (twice): Corporate reshuffling but no governance issues flagged.
- Postal Ballot: Reappointing MD — shows promoter confidence.
- Nitrile Gloves & New PPE: PPE business quietly expanding with a B2B focus.
- Automotive Cycle: Tailwind from EV & lightweight plastic adoption.
Buzz? No. Action? Plenty. Drama? Only in footnotes.
7. Balance Sheet
| Particulars | FY23 | FY24 | FY25 |
|---|---|---|---|
| Equity Capital | ₹12 Cr | ₹12 Cr | ₹12 Cr |
| Reserves | ₹454 Cr | ₹576 Cr | ₹716 Cr |
| Borrowings | ₹42 Cr | ₹33 Cr | ₹43 Cr |
| Total Liabilities | ₹1,010 Cr | ₹994 Cr | ₹1,156 Cr |
| Fixed Assets | ₹123 Cr | ₹252 Cr | ₹244 Cr |
| CWIP | ₹131 Cr | ₹2 Cr | ₹41 Cr |
Takeaway: Zero stress balance sheet. All expansion is internal accrual powered.
8. Cash Flow – Sab Number Game Hai
| Year | CFO (₹ Cr) | CFI (₹ Cr) | CFF (₹ Cr) | Net Cash |
|---|---|---|---|---|
| FY23 | ₹27 | -₹12 | -₹21 | -₹6 |
| FY24 | ₹16 | -₹5 | -₹8 | ₹3 |
| FY25 | ₹60 | -₹30 | -₹7 | ₹23 |
Smooth and self-funded. No debt dependency, no dilution, no BS.
9. Ratios – Sexy or Stressy?
| Ratio | FY23 | FY24 | FY25 |
|---|---|---|---|
| ROCE | 25% | 30% | 31% |
| ROE | 18% | 22% | 23% |
| EBITDA Margin | 9% | 12% | 13% |
| Cash Conversion | 32 | 66 | 80 |
| Debt/Equity | 0.09x | 0.06x | 0.06x |
Verdict: This is the plastic version of Apple — high margins, low debt, strong brand, low noise.
10. P&L Breakdown – Show Me the Money
| Year | Sales | EBITDA | PAT | EPS | Margin (%) |
|---|---|---|---|---|---|
| FY23 | ₹1,404 Cr | ₹128 Cr | ₹81 Cr | ₹67.22 | 9.1% |
| FY24 | ₹1,488 Cr | ₹185 Cr | ₹123 Cr | ₹101.17 | 12.4% |
| FY25 | ₹1,745 Cr | ₹225 Cr | ₹153 Cr | ₹126.22 | 12.9% |
Sales up, margins up, profit up — and all without leverage. Textbook compounding.
11. Peer Comparison
| Company | ROE (%) | ROCE (%) | P/E | Sales (Cr) | PAT (Cr) | CMP / BV |
|---|---|---|---|---|---|---|
| Supreme Industries | 17.1 | 22.0 | 58.3 | ₹10,446 | ₹922.7 | 9.5 |
| Astral | 15.2 | 20.3 | 77.3 | ₹5,832 | ₹518.9 | 11.1 |
| Time Technoplast | 14.2 | 17.4 | 26.3 | ₹5,457 | ₹387.9 | 3.5 |
| Kingfa India | 23.2 | 30.6 | 27.2 | ₹1,745 | ₹152.9 | 5.7 |
No noise. No hype. Just highest ROCE at the lowest P/E in the table. Mic. Drop.
12. Miscellaneous – Shareholding, Promoters
- Promoters (Kingfa China): 74.99%
- FII Holding: 6.34%
- DII: 0.15% (finally noticed it exists)
- Public: ~18.5%
- Shareholders: 12,636 (as of June 2025)
Also:
- No pledging.
- Steady promoter hands.
- Minimal dividend policy = max reinvestment.
13. EduInvesting Verdict™
Kingfa is that friend who works out daily, eats clean, doesn’t flex on Instagram… and silently builds an 8-pack. You look back in 5 years and wonder how they became a fitness influencer — and you didn’t.
With rock-solid growth, ROCE levels most companies dream of, a debt-light balance sheet, and expansion into PPE, Kingfa is the quiet compounder in a world of noisy “turnaround” stories.
If you’re tired of drama and love discipline — this one’s a sleeper hit.
Metadata
– Written by EduInvesting Research Team | 17 July 2025
– Tags: Kingfa India, Plastics, PPE, Specialty Compounds, High ROCE Stocks, Undercovered Multibagger, Smallcap Compounder, China Parent
