1 hr ago
Broker initiates Buy coverage on Kingfa, sets ₹7,586 target
Kingfa makes special plastic materials that are stronger, more heat-resistant and more durable.
These materials are used by carmakers and manufacturers of appliances, electrical goods and industrial products.
Cars are the company’s biggest business, providing about 74% of its FY26 revenue.
The company supplies products to major vehicle makers such as Tata Motors, Mahindra, Renault, Nissan, Volvo and Audi.
A brokerage has started coverage of Kingfa with a Buy recommendation.
It expects the company’s revenue to grow by about 17% each year from FY26 to FY29E.
The expected growth is linked to higher sales, better products and improved profit margins.
Kingfa plans to increase its production capacity to about 0.6 million tonnes per year by 2030.
The brokerage has set a target price of ₹7,586, compared with a current market price of ₹6,018.15.
Kingfa Science manufactures modified plastics for automotive, consumer durable, electrical and industrial applications.
Automotive products accounted for about 74% of FY26 revenue, with other applications contributing 26%.
The company supplies customised compounds to OEMs including Tata Motors, Mahindra, Renault, Nissan, Volvo and Audi.
The brokerage expects revenue to grow at about 17% CAGR over FY26-29E, aided by volume, product mix and margins.
Kingfa plans to expand capacity to about 0.6 MMTPA by 2030; the brokerage values it at 35x FY28E P/E.
- Who
- Kingfa Science & Technology (India) Ltd and the brokerage initiating coverage.
- What
- The brokerage issued a Buy recommendation on Kingfa with a ₹7,586 target price.
- Where
- Kingfa operates in India and supplies polymer compounds to automotive, consumer durable, electrical and industrial customers.
- When
- The report was published on September 8, 2026; its projections cover FY26-29E and capacity plans extend to 2030.
- Why
- The brokerage expects growth from higher volumes, an improved product mix, better margins and expanded domestic raw-material sourcing.
Key facts
- Recommendation
- Buy
- Target price
- ₹7,586
- Current market price
- ₹6,018.15
- FY26 revenue mix
- Automotive: about 74%; home appliances, electricals and other industrial applications: 26%
- Expected revenue growth
- About 17% CAGR over FY26-29E
- Planned capacity
- About 0.6 MMTPA by 2030
- Valuation basis
- 35x FY28E P/E
Sources
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