At a Glance
Kingfa Science & Technology (India) Ltd just posted a Q1 FY26 revenue of ₹461.9 Cr, growing 10.9% YoY, with PAT at ₹39.8 Cr. OPM held steady at 13%, proving their modified plastics business isn’t just flexible in material but also in margins. The stock trades at ₹3,512, giving a P/E of ~28 – cheaper than Astral but still not in “value investor’s dream” territory. The company remains debt-light, promoter-heavy (75% holding), and ROCE-rich at 30.6%. But with competition heating up and margins thin as a polypropylene sheet, investors need to decide whether this is a durable compound or just another molded hype.
Introduction
Ah, plastics. The material that refuses to die – and so does Kingfa’s growth story. This Indo-Chinese joint (subsidiary of Kingfa China) makes reinforced polypropylene compounds, thermoplastic elastomers, fiber composites, and yes, even PPEs. Because nothing says diversification like mixing car bumpers with face masks. Over the past 5 years, Kingfa has grown profits at a juicy 44% CAGR, while maintaining a balance sheet cleaner than a freshly molded dashboard.
Yet, FY26 begins with mixed vibes: revenue up, PAT slightly down QoQ, and investors scratching their heads like they just stepped on a LEGO brick. With new products like long glass fiber reinforced thermoplastics launching, is Kingfa set to rule the polymer kingdom, or is this a bubble that might pop under heat? Let’s dig in.
Business Model (WTF Do They Even Do?)
Kingfa India manufactures high-performance modified plastic compounds that go into automotive, consumer durables, electronics, and industrial products. In plain English, they make the stuff that makes other stuff tougher. Add to that a PPE business (masks, gloves) born during COVID, now evolving with new safety products.
Revenue streams:
- Automotive Plastics – supplying to OEMs who love lighter, stronger plastics for fuel efficiency.
- Consumer & Industrial Plastics – used in everything from gadgets to household products.
- PPE – gloves and masks, because pandemics are the new black swan.
Their edge? Strong technical tie-up with Kingfa China, consistent innovation, and a client base that loves reliability. Weakness? Reliance on raw material prices (hello crude volatility) and cyclicality in auto demand.
Financials Overview
- Q1 FY26 Revenue: ₹461.9 Cr (+10.9% YoY)
- EBITDA: ₹58 Cr (margin ~13%)
- PAT: ₹39.8 Cr (flat QoQ)
- FY25 Revenue: ₹1,745 Cr | PAT ₹153 Cr | OPM 13%
Commentary: Sales growth remains solid but margins have plateaued. PAT is growing slower than revenue, which may spook growth-chasers. However, ROE at 23% and ROCE at 31% show they’re squeezing profits out of every rupee invested like a pro.
Valuation
Let’s crunch some numbers:
- EPS (TTM): ₹126.8
- P/E: 27.7
- Industry Avg P/E: ~40
Fair Value Estimates:
- P/E Method: Applying 25–30x → ₹3,170–₹3,800
- EV/EBITDA: FY25 EBITDA ₹225 Cr; EV/EBITDA range 12–14x → EV ₹2,700–₹3,150 Cr → Fair Price ₹3,200–₹3,750
- DCF: Conservative 12% growth, 10% WACC → ₹3,000–₹3,600
Verdict: Stock trades near fair value, offering neither screaming buy nor sell signals.
What’s Cooking – News, Triggers, Drama
- Launch of long glass fiber reinforced thermoplastics – premium product for domestic auto market.
- Leadership shake-up: Two directors appointed, one resigned – corporate musical chairs.
- Global tie-ups: Parent company R&D support continues, aiding new material development.
- Macro Risks: Crude oil price swings may hit margins.
Balance Sheet – Auditor’s Roast
| Particulars (FY25) | ₹ Cr |
|---|---|
| Total Assets | 1,156 |
| Liabilities | 384 |
| Net Worth | 728 |
| Borrowings | 43 |
Roast: Borrowings at ₹43 Cr? That’s petty cash in corporate terms. Assets heavy, liabilities light – looks like a gym-goer who skipped leg day but still flexes.
Cash Flow – Sab Number Game Hai
| Year | Ops | Investing | Financing |
|---|---|---|---|
| FY23 | 27 | -12 | -21 |
| FY24 | 16 | -5 | -8 |
| FY25 | 60 | -30 | -7 |
Roast: Cash from ops finally looks healthy in FY25, after years of jogging in place. Investing outflows = growth capex; financing outflows = not much to see, they barely borrow.
Ratios – Sexy or Stressy?
| Ratio | Value |
|---|---|
| ROE | 23% |
| ROCE | 30.6% |
| P/E | 27.7 |
| PAT Margin | 12.6% |
| D/E | 0.06 |
Roast: ROE and ROCE hotter than your car bonnet in June. Debt/equity so low, it’s practically allergic to loans.
P&L Breakdown – Show Me the Money
| Year | Revenue | EBITDA | PAT |
|---|---|---|---|
| FY23 | 1,404 | 128 | 81 |
| FY24 | 1,488 | 185 | 123 |
| FY25 | 1,745 | 225 | 153 |
Roast: Revenue climbs, PAT climbs, margins widen. This isn’t just growth – it’s growth with abs.
Peer Comparison
| Company | Rev (₹ Cr) | PAT (₹ Cr) | P/E |
|---|---|---|---|
| Supreme Inds. | 10,419 | 890 | 61 |
| Astral | 5,832 | 519 | 74 |
| Time Tech | 5,457 | 388 | 28 |
| Kingfa | 1,790 | 154 | 28 |
Roast: Kingfa’s revenue is small compared to biggies, but margins and valuation are saner. Think of it as the underdog in a Marvel movie.
Miscellaneous – Shareholding, Promoters
- Promoters: 74.99% – classic Chinese parent, tight grip.
- FIIs: 6.3% – foreigners like it, but not enough to start a fan club.
- Public: 18.5% – minority investors holding on.
- Buzz: No IPOs, no M&As – boring but stable.
EduInvesting Verdict™
Kingfa Science (India) is that overachieving cousin in the plastics family – not the biggest, but definitely the most consistent. From a near-death FY14 to posting ₹153 Cr PAT in FY25, the turnaround has been legendary. The parent’s tech support and strong auto demand fuel growth, while low debt keeps risks minimal.
SWOT Analysis
- Strengths: High ROE/ROCE, innovation, parent backing, debt-light.
- Weaknesses: Raw material volatility, small scale vs peers.
- Opportunities: New product launches, EV/auto plastics boom, PPE diversification.
- Threats: Competition from domestic giants, margin pressure, Chinese dependency.
Final Take:
At ₹3,512, Kingfa is priced for perfection but not insanity. Expect steady growth, maybe double-digit returns if auto demand stays hot and new products click. But don’t expect this stock to moon – it’s a disciplined compound, not a speculative bubble.
Written by EduInvesting Team | 30 July 2025
SEO Tags: Kingfa Science, Plastics Industry, Stock Analysis, FY26 Q1 Results
