Kingfa Science & Technology (India) Limited

Basic Materials — Specialty Chemicals · NSE

₹6,550.00+₹20.50 (+0.31%)

DalalBaazaar Score

61 / 100

🟢 Good

Verdict

NEUTRAL

Risk

Moderate

Driven by moderate debt load, negative free cash flow, small-cap size, which brings sharper price swings.

In simple words: Strong business and financial position, with both sales and profits growing well. Cash generation is currently the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 6:09 pm

Mixed / neutral. No major red flags jump out, but nothing here screams "obviously cheap" either. This is a name that needs a peer comparison and a view on near-term earnings triggers before sizing a position.

Understanding the Business

Company site ↗

The 60-second version of Kingfa Science & Technology (India) Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

Kingfa Science & Technology (India) Limited manufacturing and supply of high-quality reinforced polypropylene compounds, thermoplastics elastomers, and fiber re-enforced composites in India.

IndustrySpecialty Chemicals

SectorBasic Materials

Employees294

Annual revenue₹1,992 Cr

How does it make money?

Turns over ₹1,992 Cr a year. Of every ₹100 of sales, about ₹9 reaches shareholders as profit, with ₹14 left at the operating level before interest, tax and depreciation. Each of its 294 employees supports ₹6.78 Cr of revenue a year, the signature of a capital- or asset-led business.

EBITDA margin14.3%

Net margin9.3%

Revenue / employee₹6.78 Cr

Who are its competitors?

The closest listed comparisons in its industry are ASIAN PAINTS LIMITED, PIDILITE INDUSTRIES LTD, SRF LTD, UPL LIMITED. These are the companies its valuation and returns are measured against elsewhere in this report.

ASIAN PAINTS LIMITEDP/E 46.9x · ROE 22.3%

PIDILITE INDUSTRIES LTDP/E 57.8x · ROE 24.4%

SRF LTDP/E 33.8x · ROE 15.4%

UPL LIMITEDP/E 21.5x · ROE 6.1%

What is its competitive advantage?Some evidence

ROCE of 17.9% is above what capital typically costs, which suggests some pricing power, though not yet the sustained, wide gap that marks a durable advantage.

ROCE17.9%

ROE13.2%

Peer median ROE22.3%

What has been driving growth?

Sales and margins have both contributed to where profit is now. Over 3 years revenue moved +42% while net margin moved +60% relative to itself. What this cannot tell you is which products, customers or geographies did the work — that lives in the segment disclosures of the annual report.

Revenue effect+42%

Margin effect+60%

DalalBaazaar Score

61/ 100

Good

Weighted across six categories. Every point is explained below.

• P/E of 39.3x already prices in growth
• P/E is close to its own historical median of 34.8x
✗ P/B of 6.34x is a steep premium to book

Quality vs. Valuation

Company Quality

66/ 100

Good

How good the business is, ignoring the share price entirely.

Valuation

47/ 100

Fair

What you are being asked to pay, ignoring how good the business is.

A reasonable business at a reasonable price — neither the quality nor the valuation stands out in either direction.

Historical Valuation

Current P/E

39.3x

3Y Median

34.8x

40 monthly readings · mean 35.3x · range 28.6x–45.5x

Sector Median

40.4x

median of 4 sector peers

⚠️Current valuation is approximately 13% above its 3y median of 34.8x. Paying more than usual needs a reason — faster growth, a better balance sheet, or a re-rating you believe in.

🟡Against its sector it is priced broadly in line with the peer median of 40.4x.

vs. its own history

Fair

34.8x median over 40 months · +13%

vs. sector peers

Fair

40.4x median of 4 peers · -3%

vs. generic bands

Expensive

Above 35x

P/E (Trailing)

39.3x

P/B

6.34x

EV/EBITDA

30.8x

PEG

1.25

Dividend Yield

0.31%

What's Good / What's Bad

🟢 What's Going Well3

Margins are improving
EBITDA margin is up from 9.6% to 14.3% over 3 years.
Debt is being paid down
Total debt is down 64% over 3 years.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention3

Free cash flow is negative
The business is not currently covering its capital spending from operations.
Return on equity is falling
ROE has dropped from 17.5% to 13.2% — each rupee of shareholder capital earns less than it did.
Return on capital is falling
ROCE has declined from 24.3% to 17.9% — often a sign of competition or overexpansion.

Red Flags

1 item require attention · 1 watch

🟡Free cash flow is negativeFinancial
Free cash flow was -₹45 Cr in the latest year.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Margin expansion has further to run
EBITDA margin has risen from 9.6% to 14.3%. If that holds, profit compounds faster than sales and today's multiple looks cheaper in hindsight than it does now.
Deleveraging frees up earnings
Debt is down 64% over 3 years. Every rupee of interest not paid drops to the bottom line, so profit can grow even if revenue does not.
Earnings have proved durable
Profitable in every one of the last 4 reported years. Consistency lowers the risk that any single bad year is structural rather than cyclical.

🔴 Bear CaseWhat could go wrong?

Returns on shareholder capital are falling
ROE has dropped from 17.5% to 13.2%. Each rupee of equity earns less than it did, so profit growth increasingly depends on raising more capital rather than on the existing base working harder.
Size brings its own risk
Small Cap businesses are thinly traded, so exits are harder in a falling market and single events move the price more than they would for a larger company.

🟡 Key Things to WatchMeasurable tripwires, set against where this company stands today

1Revenue growth stays above 9% a year✓ 12.4% CAGR
Latest reported year was 49.1%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 12%✓ 14.3%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Free cash flow remains positive✗ -₹45 Cr
Profit that never becomes cash eventually stops being profit.
4Debt / EBITDA stays below 2x✓ 0.1x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
5ROCE stays above 15%✓ 17.9%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

8 / 11 checks passed

✗ Strong return on equity (ROE ≥ 15%)
✓ Strong return on capital employed (ROCE ≥ 15%)
✓ Healthy net margin (≥ 10%)
✗ Generates positive free cash flow
✗ Manageable leverage (Debt/Equity < 1.0)
✓ Adequate short-term liquidity (Current Ratio ≥ 1.0)
✓ Revenue growing year-over-year
✓ Profit growing year-over-year
✓ Not trading at an extreme valuation (P/E < 40x)
✓ Not buying right at the 52-week high
✓ Short-term technical trend isn't bearish

Price history

Quick Metrics

4 good · 5 neutral · 2 weak

Market Cap

₹8,876 Cr

Small Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

39.3x

Fair

Fairly valued against the generic band

P/B Ratio

6.34x

Rich

Steep premium to book — needs high, durable returns to justify

EPS (TTM)

₹166.54

Profitable

Profitable on a per-share basis

ROE

13.2%

Moderate

Moderate capital efficiency

ROCE

17.9%

Strong

Earns comfortably above its likely cost of capital

Debt/Equity

1.10x

Moderate

Moderate leverage

Revenue Growth (YoY)

49.1%

Healthy

Healthy top-line growth

Profit Growth (YoY)

80.1%

Healthy

Profits growing at a healthy clip

Dividend Yield

0.31%

Modest

Small cash return — most of the return has to come from the price

Free Cash Flow

-₹45 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

CMP

₹6,550

Operating Margin

15.8%

Good

Healthy core-business profitability

Net Margin

10.2%

Good

Strong bottom-line conversion

Current Ratio

4.06

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.68

Defensive

Steadier than the market

52W Range Position

87%

Near high

Near its 52-week high

Technical Snapshot

SMA 20 / SMA 50

6478.5 / 6135.7

Bullish alignment (short > long)

Price vs SMA 200

Above

Long-term uptrend

RSI (14)

58.9

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹1,401 Cr	₹1,488 Cr	₹1,743 Cr	₹1,992 Cr	+12.4%
EBITDA	₹134 Cr	₹188 Cr	₹236 Cr	₹284 Cr	+28.4%
EBITDA Margin	9.6%	12.6%	13.6%	14.3%	—
PAT (Net Profit)	₹81 Cr	₹123 Cr	₹153 Cr	₹185 Cr	+31.5%
EPS	₹67.22	₹101.17	₹126.22	₹144.1	+28.9%
ROE	17.5%	20.8%	21.0%	13.2%	—
ROCE	24.3%	28.5%	28.9%	17.9%	—
Total Debt	₹42 Cr	₹33 Cr	₹43 Cr	₹15 Cr	-28.7%
Free Cash Flow	₹3 Cr	-₹5 Cr	₹30 Cr	-₹45 Cr	—

🟢 Revenue has grown at 12.4% a year over 3 years.

🟢 EBITDA has grown at 28.4% a year over 3 years.

🟢 EBITDA Margin has risen from 9.6% to 14.3% over 3 years (+4.7 pts).

🟢 PAT (Net Profit) has grown at 31.5% a year over 3 years.

🟢 EPS has grown at 28.9% a year over 3 years.

🔴 ROE has fallen from 17.5% to 13.2% over 3 years (-4.2 pts).

🔴 ROCE has fallen from 24.3% to 17.9% over 3 years (-6.4 pts).

🟢 Total Debt has shrunk at 28.7% a year over 3 years.

🔴 Free Cash Flow has turned negative, from ₹3 Cr to -₹45 Cr.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹1,754 Cr

Total Liabilities

₹355 Cr

Total Debt

₹15 Cr

Cash & Equivalents

₹136 Cr

Operating Cash Flow

₹66 Cr

Capex

-₹111 Cr

Shareholding (proxy)

Institutional Holding

6.7%

Insider Holding

74.9%

Corporate Actions

Dividend Rate

₹20

Ex-Dividend Date

21 Sept 2026

Peer Comparison

Company	P/E	ROE
ASIAN PAINTS LIMITED	46.9x	22.3%
PIDILITE INDUSTRIES LTD	57.8x	24.4%
SRF LTD	33.8x	15.4%
UPL LIMITED	21.5x	6.1%

Recent News

2 positive4 general

Kingfa Science & Technology (India) Limited (KINGFA.NS) Trades at ₹6,550, Sitting Precisely Midway Between Key Support and Resistance - Rounding Top

https://www.siam.in/, 04 Oct

Kingfa Science & Technology (India) vs Nifty 50: Returns Compared

Univest, 01 Oct

Does Kingfa Science & Technology (India) (NSE:KINGFA) Deserve A Spot On Your Watchlist?

Simply Wall Street, 19 Sept

Kingfa Science & Technology (India) Ltd. Shareholding Pattern – Promoters, FIIs & DIIs

Value Research, 27 Aug

Kingfa Science & Technology (India) standalone net profit rises 101.58% in the June 2026 quarter

Business Standard, 15 AugResults

🟢Potentially positiveReported improvement. Check whether it came from volume, price or a one-off item before treating it as a trend.

Kingfa Science net profit up 111% in Q1FY27 to ₹802 crore

scanx.trade, 14 AugResults

🟢Potentially positiveReported improvement. Check whether it came from volume, price or a one-off item before treating it as a trend.

Watch Items

Cross-check against the company's latest quarterly filing / investor presentation before acting.

DalalBaazaar Thesis

🟡Business QualityAdequate11.8/20

🟡Financial HealthAdequate12.9/20

🟢GrowthStrong16.1/20

🟡ProfitabilityModerate8.2/15

🔴ValuationDemanding6.5/15

🟡RiskModerate5/10

Good business at a fair price

A sound business at a reasonable valuation. Suitable for a long-term holding, with the valuation and the direction of margins worth watching rather than the business itself.

This thesis breaks if

✓Revenue growth stays above 9% a year12.4% CAGR
✓EBITDA margin holds above 12%14.3%
✗Free cash flow remains positive-₹45 Cr
✓Debt / EBITDA stays below 2x0.1x
✓ROCE stays above 15%17.9%