Kingfa Science & Technology (India) Ltd

Price story Before the numbers, the tape. A stock price moves through four repeating seasons: a flat base (stage 1), an advance (2), a top (3), a decline (4). Where the price sits in that cycle frames everything below.

Kingfa Science & Technology (India) Ltd trades at ₹6,197, in a confirmed uptrend and 70 weeks into that stage. That is +25.9% against its own 200-day average. It sits at 100% of a 52-week range of ₹3,846 to ₹6,197. On relative strength it has been ahead of the NIFTY 500 on a trailing-13-week view for 6 straight weeks.

Today the stock is in a confirmed uptrend — week 70 of stage 2, confirmed. At ₹6,197 it trades +25.9% versus its 200-day average and sits at 100% of its 52-week range (₹3,846–₹6,197).

Against the market, two honest reads. Cumulative: over the last 10.5 years the stock moved +1,029% while the NIFTY 500 moved +267% — ahead of the index over the full window. Recent form: on a trailing-13-week view the stock has been ahead for 6 straight weeks — the ribbon below is that same metric, week by week.

What would end the trend, mechanically: two Friday closes in a row below the 200-day line. That is the exit rule — no debates.

Story check

Kingfa Science & Technology (India) Ltd's story is not scored yet against the markers our research file set on 17 May 2026. Where it sits in its own cycle: EARLY_EXPANSION. Still open: Polypropylene and PA/PC resin prices are crude-oil derivatives. Every Rs10/bbl Brent move translates to 100-150bps OPM impact on a 13% base — no headroom for sustained crude spike.

Our read, 17 May 2026. A Chinese-parent engineered-polymer leader riding India's auto-plastics upgrade cycle — Bhiwadi plant adds northern capacity just as EV material tailwind builds.

From the numbers. PE at 36.35x — 40th percentile of 10Y range, below median of 44.45x (0.82x ratio). The cycle history shows a violent contraction from PE 155.6x (Mar 2021) to 19.5x (Mar 2024), followed by the current EXPANSION_STARTED…

From the price. Price stage 2, week 70 — above its 200-day line, relative strength rising.

From the research. A Chinese-parent engineered-polymer leader riding India's auto-plastics upgrade cycle — Bhiwadi plant adds northern capacity just as EV material tailwind builds.

🚨 Where they disagree. PE at 36.35x — 40th percentile of 10Y range, below median of 44.45x (0.82x ratio). The cycle history shows a violent contraction from PE 155.6x (Mar 2021) to 19.5x (Mar 2024), followed by the current EXPANSION_STARTED phase. EPS has been recovering strongly from the FY21 trough (EPS Rs4.39) to FY25 (EPS Rs126.22) — a 29x improvement in 4 years. The current expansion is EPS-driven and healthy. FII buying signal confirmed in PE/PB cycle data. GOLDEN_SETUP per cycle analysis.

What is proven. A Chinese-parent engineered-polymer leader riding India's auto-plastics upgrade cycle — Bhiwadi plant adds northern capacity just as EV material tailwind builds.

What is not proven yet. Polypropylene and PA/PC resin prices are crude-oil derivatives. Every Rs10/bbl Brent move translates to 100-150bps OPM impact on a 13% base — no headroom for sustained crude spike.

🚨 Layer 1 read, 27 June 2026 — DROP. Earnings and ROCE look great and the stock is still early, but cash conversion is weak and working capital is ballooning. Kingfa's PE has compressed off its bubble while EPS kept rising (12q revenue 339 -> 578 Cr) with class-leading 30.6% ROCE and a fresh Bhiwadi plant just online, and it has run only ~51% in a year. The catch is earnings quality: working-capital days jumped 63% to 113 and only 31 paise of every rupee of profit became cash over three years — and with no concalls (web-fallback, Chinese-parent opacity) that build is unverified. P2.

What would change Layer 1’s mind. If Q1 FY27 revenue accelerates past 14% (Bhiwadi contributing, milestone M1) WHILE working-capital days normalise back toward the ~69-day historical average — i.e. the growth starts converting to cash — the quality concern clears and this upgrades. A sustained WC build or a crude-driven OPM break below 13% confirms the leak and pushes toward DROP.

The test written in advance. Crude-linked feedstock price volatility — polypropylene and engineering resin costs — Crude-linked feedstock price volatility — polypropylene and engineering resin costs Brent crude > $90/bbl for more than 6 weeks; Q1 FY27 OPM trajectory by the next result.

The test written in advance. Promoter dilution — Chinese parent governance opacity — Promoter dilution — Chinese parent governance opacity Any further promoter dilution; related-party transaction disclosures in annual report by the next result.

The test written in advance. Bhiwadi ramp-up risk — new plant volume utilization delay — Bhiwadi ramp-up risk — new plant volume utilization delay Q1 FY27 revenue growth rate vs Q3 FY26 11% — any acceleration signals Bhiwadi contribution by the next result.

What the company does. FY26 9M revenue Rs1,417 Cr (+11% YoY) with OPM holding at 13%, demonstrating resilient margins through crude price cycles — ROCE 30.6% is class-leading for a specialty compounder. A Rs500 Cr preferential issue funded a new Bhiwadi (Rajasthan) plant that commenced commercial production Feb 22, 2026 — northern India footprint now established, capex cycle peak is behind. PE at 40th percentile of 10Y range (below median 44.45x) with EPS accelerating 25% YoY in FY25 — early expansion phase with FII buying signals institutional accumulation.

Lever 10 · New geographies — BUILDING. Bhiwadi, Rajasthan plant commenced commercial production Feb 22, 2026 — establishes Delhi-NCR auto belt presence; Rs115 Cr deployed from Rs500 Cr preferential issue as of Q3 FY26. What proves it keeps working: Geographical Expansion — Bhiwadi Plant (Northern India Footprint). It stops working if Brent crude > $90/bbl for more than 6 weeks; Q1 FY27 OPM trajectory.

Lever 7 · Consolidation — BUILDING. Flame-retardant grades for EV battery packs and LGF-PP for structural auto components — import-substitution plays with structurally superior margins vs standard PP compounds. What proves it keeps working: EV Materials Pivot — Flame Retardant + LGF-PP for Battery Systems. It stops working if Brent crude > $90/bbl for more than 6 weeks; Q1 FY27 OPM trajectory.

Lever 14 · A bigger market to sell into — BUILDING. Indian auto industry shifting to higher plastic content per vehicle (lightweighting + premium interiors). Kingfa's OEM approvals at Maruti, Tata, Mahindra create structural volume tailwind. What proves it keeps working: TAM Expansion — Auto Plastics Content per Vehicle Rising. It stops working if Brent crude > $90/bbl for more than 6 weeks; Q1 FY27 OPM trajectory.

Lever 2 · Value-added mix — BUILDING. Shift from standard PP compounds to engineering plastics (PA, PC, PBT alloys) and TPEs — higher realisation and stickier customer relationships. What proves it keeps working: Product Mix Premiumisation — Engineering Plastics + Specialty Grades. It stops working if Brent crude > $90/bbl for more than 6 weeks; Q1 FY27 OPM trajectory.

Sources: our stock research file (17 May 2026) · quarterly results through Jun 26. The story check is re-scored every results season; the record below never changes.

Revenue Revenue is the top line: everything the company billed its customers in the period.

Kingfa Science & Technology (India) Ltd reported ₹689 Cr of revenue in the Jun 26 quarter, +49.1% year on year. That is the 11th straight quarter of year-on-year growth. Over 10 years it has compounded at 20.3% a year. The last full year, FY26, came in at ₹1,996 Cr. The last four reported quarters add to ₹2,222 Cr.

Why this happened. The single biggest forward catalyst. Kingfa's prior plants (Chakan-Pune, Jejuri) were concentrated in Western India, leaving the Delhi-NCR auto corridor underserved logistically. Bhiwadi is 60 km from Gurgaon — the Maruti Suzuki, Hero MotoCorp, and Honda manufacturing hub. Reduced freight cost + faster lead times to northern OEMs is the margin unlock. The Rs500 Cr preferential issue (Aug 2025) funded this expansion, with Rs115 Cr deployed by Feb 2026 per the monitoring agency report. The remaining Rs385 Cr will fund Chakan Phase 2 and South India land acquisition. The plant's volume ramp is the FY27 PAT lever.

FY26 revenue came in at ₹1,996 Cr (+14.4% on the year), capping 10 years at 20.3% compound. The latest quarter (Jun 26) printed ₹689 Cr, +49.1% year on year — the 11th consecutive quarter of year-over-year growth.

Pace check: the last four quarters averaged +23.7% growth against the decade's 20.3% — the current year is running faster than its own long-run rate.

Acceleration check: trailing-twelve-month revenue grew +24.1% over the last 4 quarters against +19.2%/yr over the last 8 — accelerating; TTM profit +46.1% vs +33.1%/yr — accelerating.

Operating margin Operating margin is what is left of every ₹100 of sales after running the business, before interest and tax. It is the cleanest read on pricing power and cost control.

Kingfa Science & Technology (India) Ltd's operating margin is 16.0% in the Jun 26 quarter, +3.0 percentage points against the same quarter a year ago. That is the widest this company has ever printed on a full-year basis. Across 13 fiscal years the operating margin has ranged −2.0% to 13.0%.

Why this happened. Kingfa has been deliberately increasing the share of specialty and engineering plastic grades which carry structurally better margins and create higher switching costs. The parent company's 221-product catalog and global R&D pipeline enables Kingfa India to introduce novel grades ahead of domestic competitors. Consumer electronics, OA (office automation), and telecommunications are growth verticals beyond auto.

The latest quarter's operating margin is 16.0%, +3.0 pp against the same quarter a year ago. Across 13 fiscal years the operating margin has ranged −2.0%–13.0%, and FY26's 13.0% is the top of that band — a record year.

Why the margin moved: operating margin went +3.6 pp year on year while gross margin went +2.4 pp — the gain came mostly from the gross line: input costs and pricing.

Worth repeating from the valuation section: cheap against its own history on record margins is not the same thing as cheap — a record margin flatters every ratio built on top of it.

Net profit Net profit is what survives every cost, interest and tax — the number EPS, dividends and book value all grow from.

Kingfa Science & Technology (India) Ltd earned ₹80.0 Cr of net profit in the Jun 26 quarter, +100.0% year on year. It is the 9th consecutive quarter of growth. Full-year FY26 profit was ₹185 Cr. The 10-year compound rate is 32.6%. That is 11.6% of the quarter's revenue. The same quarter a year earlier earned ₹40.0 Cr.

Jun 26 profit was ₹80.0 Cr, +100.0% year on year — the 9th consecutive quarter of growth. On the full year, FY26 printed ₹185 Cr (+20.9%), and the 10-year compound rate is 32.6%.

Why profit moved: revenue contributed +49.1% and the margin +3.0 pp — the quarter was margin-led: most of the profit growth came from keeping more of each sale.

Pace comparison, last four quarters: profit +45.0% vs revenue +23.7%. Profit is growing faster than sales — fixed costs are being spread over a bigger base, and each extra rupee of revenue drops more to the bottom line.

Cash flow — the router The P&L says what was earned; the cash-flow statement says what actually arrived. Operating cash flow (CFO) against profit is the cleanest lie detector in the accounts.

Over the last 3 fiscal years 31% of Kingfa Science & Technology (India) Ltd's reported profit arrived as operating cash — a gap worth watching. In FY26 that was ₹66.0 Cr of operating cash against ₹185 Cr of profit. After ₹104 Cr of capital spending, ₹−38.0 Cr was left as free cash.

FY26: operating cash of ₹66.0 Cr against reported profit of ₹185 Cr, leaving free cash of ₹−38.0 Cr after ₹104 Cr of capital spending. Across the last 3 fiscal years the conversion rate is 31% of profit.

Cash-flow readings here are annual — that is the resolution our series carries, so this section moves once a year.

🚨 Why conversion sits at 31%: the cash cycle stretched 29 days between FY21 and FY26 — more of each rupee of profit waits inside the cycle before arriving. Less than 70% of profit arriving as cash is the thing to watch on this page.

Router verdict: conversion is below par and the cash cycle has stretched 29 days — the next section's job is to find where the cash is stuck.

Where the cash goes Working capital is the cash tied up between paying suppliers and getting paid: debtor days (customers owe), inventory days (stock waits), and the cash conversion cycle (the whole loop, in days of sales).

Kingfa Science & Technology (India) Ltd's cash conversion cycle runs 100 days in FY26, up from 71 days in FY21. Capital spending ran ₹175 Cr over the last 3 years. At FY26 sales of ₹1,996 Cr each day of that cycle holds about ₹5.5 Cr, so roughly ₹547 Cr sits inside the business at any moment.

FY26: debtors at 98 days, inventory at 78 days — roughly 2.6 months of stock waiting to sell; that is where the cash sits while it waits — for a full cycle of 100 days, looser than FY21's 71.

The full loop: cash goes out to suppliers and production on day 0; stock waits 78 days to sell; customers pay about 98 days after that; and suppliers themselves are paid at 75 days — netting out to the 100-day cycle.

In money terms: at FY26 sales of ₹1,996 Cr, each day of the cycle holds about ₹5.5 Cr — so the 100-day loop keeps roughly ₹547 Cr sitting inside the business at any moment.

On the investment side: capital spending of ₹175 Cr over the last 3 fiscal years against ₹68.0 Cr of depreciation — the company is building well ahead of wear-and-tear. Capital work-in-progress stands at ₹61.0 Cr (FY26) — capacity paid for but not yet earning.

The synthesis: the working-capital loop is the cash sink the router flagged — watch the cycle, not the P&L.

Return on capital Return on capital employed (ROCE) is the profit the whole business earns on all the money in it — equity and debt together. It is the single best test of whether growth creates value or just size.

Kingfa Science & Technology (India) Ltd earns a ROCE of 23% in FY26. That is up from a trough of −9% in FY14. Return on invested capital clears the cost of that capital by +10.6 percentage points, so growth here adds value rather than only size. The wiring behind it is 9.3% net margin on 1.14× asset turns.

FY26 ROCE is 23%, recovered from a FY14 trough of −9% — the full ladder below shows the fall and the climb, undoctored.

Why the return is what it is — the wiring (FY26): 9.3% net margin × 1.14× asset turns × 1.25× balance-sheet leverage ≈ 13.3% on equity. Margin does its share; leverage is modest — this is an earned return, not a borrowed one.

The capstone test — ROIC − WACC: 22.6% − 12.0% = a +10.6 pp spread. The 12.0% is a standing assumption for the cost of capital in India, not a per-stock estimate — read the sign and the size of the spread, not the decimals. A spread this wide means every rupee reinvested creates more than a rupee of value — the engine compounds.

Debt Debt-to-equity says how much of the business is funded by borrowings. Low is the safe corner; the trend matters as much as the level.

Kingfa Science & Technology (India) Ltd carries total debt of ₹15.0 Cr against shareholder equity of ₹1,399 Cr as of Mar 26, a debt-to-equity of 0.01 — effectively unlevered. On the annual view that ratio went from 0.12 in FY22 to 0.01 in FY26. The returns elsewhere on this page are therefore earned rather than borrowed.

Mar 26: total debt of ₹15.0 Cr against shareholder equity of ₹1,399 Cr — a debt-to-equity of 0.01. On the annual view, debt-to-equity went from 0.12 (FY22) to 0.01 (FY26). The returns on this page are earned, not borrowed.

Ownership Who owns the stock, quarter by quarter: promoters (the controlling owners), foreign and domestic institutions, and the public. Steady accumulation by people close to the numbers is a signal; a quiet register is also an answer.

Domestic institutions added 8.8 points of Kingfa Science & Technology (India) Ltd over 8 quarters, the biggest move on the register. That takes domestic institutions to 8.8% of the company. Promoters moved −8.0 points over the same window, to 67.0%. The register is read on the four disclosed classes only; nothing is inferred between filings.

The register over the last two years — Domestic institutions: +8.8 points over 8 quarters to 8.8%; Promoters: −8.0 points over 8 quarters to 67.0%; Foreign institutions: +1.4 points over 8 quarters to 7.7%.

Why the register moved: domestic institutions drove it (+8.8 points), absorbed on the other side by promoters (−8.0 points) — steady accumulation by institutions reading the same numbers this page reads.

Safety line The Z-score estimates how far a company sits from balance-sheet distress — above roughly 3 is safe, below roughly 1.8 is the danger zone. It was built for manufacturers, so it is not applied to banks and lenders.

Kingfa Science & Technology (India) Ltd: the Z-score is not available for this stock, so we say so rather than invent one. It is a distance-to-distress estimate from the balance sheet, not a forecast of failure. The debt, cash-flow and return sections above carry the balance-sheet evidence this page does hold, and each of them states its own reporting date.

The safety line in one sentence: the Z-score is not available for this stock, so we say so rather than invent one.

Valuation P/E is the price of ₹1 of annual profit: how many rupees the market pays for each rupee the company earns in a year.

Kingfa Science & Technology (India) Ltd trades at 37.2× P/E, mid-range by its own standards (44th percentile). Its long-run median P/E is 40.1×, measured across 10.5 years of weekly readings. This places the multiple against the stock’s own record, and says nothing about what the business is worth.

Today's P/E of 37.2× is mid-range by its own standards (44th percentile), against a long-run median of 40.1× measured over 10.5 years of weekly readings. This is a comparison against the stock's own history — not a claim about what it is worth.

One caveat before moving on: margins are the best this company has ever printed — cheap against its own history on record margins is not the same thing as cheap. If profitability mean-reverts, today's multiple is higher than it looks.

🚨 Why the multiple sits where it does: over the past year annual EPS moved +8.3% against a +33.5% price move — the price outran earnings, pushing the multiple UP its own range.

The price move, decomposed: over 5y, of the +41.7%/yr price move, ~+61.6%/yr came from earnings growth and ~−19.9 pp from the multiple (compressing); over 10y, of the +19.1%/yr price move, ~+30.8%/yr came from earnings growth and ~−11.7 pp from the multiple (compressing). The split is the honest approximate (price return minus earnings growth); it makes the rally itself visible instead of hiding it behind the percentile.

Put together: the multiple is unremarkable against its own past, so the story rests on the earnings line underneath it, not the multiple.

What the price assumes This reading works the multiple backwards. It asks one question: what yearly rate of profit growth is a buyer at the market price already paying for? The number is the growth rate that makes eleven years of profit — six years growing, then five fading — add up to that day's market price, once each year is discounted at 11% a year.

Solved at its 29 June 2026 price, Kingfa Science & Technology (India) Ltd was paying for profit growth of about 20.8% a year. Profit itself has compounded 32.6% a year over the past 10 years. Today the market pays 37.2× P/E, the 44th percentile of its own 11-year range.

What the two numbers say together. The multiple is unremarkable against its own past, and the growth the price is paying for is below what this company has actually delivered.

How to hold this number: it is a reading of one day's price, taken on 29 June 2026, not a running figure — every other number on this page, the multiple included, is read off the live quote as of 11 September 2026. A higher price is paying for more growth and a lower price for less, so it moves whenever the price does, and this page does not restate it between measurements.

Stage: Consistent Every business sits somewhere on a fundamental arc, and this page names the spot before anything else. The last twelve quarters of revenue, profit and EPS growth — plus the return the business earns on its capital — are read as curves: Deteriorating (the curves are falling), Turning around (a trough has just formed and the last few quarters lift off it), Improving (the climb off the trough is sustained), Consistent (steadily positive with healthy returns), Topping out (still high but decelerating from the peak). When the curves genuinely disagree the read is Mixed; too little history is No read. CAGR (compound annual growth rate) is the smooth yearly pace that turns the starting value into the latest one — the fairest way to compare growth across different time spans. Read the columns together: if the 1-year number towers over the 10-year, recent growth is running hotter than the long-run trend. A dash means that window is not held, or the base year was a loss (where a growth rate is not meaningful).

Kingfa Science & Technology (India) Ltd reads as consistent on its fundamental arc. Consistent — revenue, profit and EPS growth have stayed positive through the window, with ROCE at 23.6% and holding. The read is built from 12 quarters across 4 curves, on full evidence.

Why it matters: steady curves with healthy returns are the compounding setup — the risk is the price, not the business.

4-Factor Sector Score

55.4/100 — rank 5 of 8 in Plastics - Plastic & Plastic Products · 100% evidence confidence

Kingfa Science & Technology (India) Ltd scores 55.4 out of 100 against the 8 companies it is compared with in Plastics - Plastic & Plastic Products, ranking 5. Balanced evidence: keep at normal research priority and require another comparable period before raising conviction.

The four contributions add to the total exactly: 24.2 + 13.8 + 4.1 + 13.3 = 55.4. This is the SAME number shown on the sector comparison — it is computed once, for the whole peer set, and read here.

What would change it: The read weakens if profit growth turns negative or margin improvement reverses while sector-relative strength deteriorates.

Frequently asked questions