Broker’s call: Kingfa Science (Buy)

Kingfa Science & Technology, a prominent polymer compounding company in India, has been rated with a Buy by brokers. The firm specializes in manufacturing modified plastics by incorporating minerals, dyes, pigments, and other additives into polypropylene to enhance attributes like strength, heat resistance, and durability. These tailored compounds are distributed across various sectors, including automotive, consumer durables, electrical applications, and industrial uses.

Automotive products represent about 74% of Kingfa's revenue for the fiscal year 2026, while the remaining 26% stems from home appliances, electricals, and other industrial segments.

Founded as Hydro S&S Industries in November 1983 and acquired by China-based Kingfa Science & Technology in May 2013, the company now holds roughly 67% stake in itself. The analysts anticipate a compound annual growth rate (CAGR) of around 17% for Kingfa's revenue from FY26 to FY29E, bolstered by robust volume growth, an improved product mix, and margin enhancement through increased sourcing of raw materials from the domestic market.

Furthermore, the company's strategy to grow its capacity to approximately 0.6 MMTPA by 2030 offers additional insight into its future expansion.

With this in mind, the brokers have initiated coverage on Kingfa Science, assigning it a Buy rating. The company is valued at a price-to-earnings (P/E) ratio of 35 times FY28E, leading to a target price of ₹7,586.