Business Overview
Kingfa Science and Technology is Plastics sector Company. It is a leading manufacturer and supplier of high quality Reinforced Polypropylene Compounds,Thermoplastics Elastomers, Fibre Re-Inforced composites and all engineering plastics.
The Company has Chinese Parentage. The Company has four manufacturing sites located in cities of Pune, Gurgaon and Puducherry.
The products from the Company are
- Polypropylene is seen as alternative to ABS, Polyester and Polyamide
- Engineering plastic components like PBT, PET and Nylon
- Thermoplastic Elastomers under brand Hyprene
- Advanced composite materials for Automotive
- POM and LFT used in Automobile Industry
Automobile Companies are major consumer of products from this Company. Along with Automobile companies Electronic good companies which uses plastics are also client of this Company.
Stock Performance
Above is long term price performance chart of the Stock. As you can see it has given stellar returns in past five years of so. It made most out of the Bull run which started in year 2014 and have close to twenty times return in very short span of time.
It has not corrected great deal after that jaw dropping run and is consolidating in range of 700 and above. So investors have made fortunes in this stock during last few years.
The stock does not give any dividend as of now and may start giving in future. Lack of dividend was made up by price appreciation in this case.
My Opinion
Kingfa Science and Technology is present in growing sector of Plastic components. The products from Company are used to substitute metal usage in Automobile or different home appliances.
The growth prospectus of Company is present. It will be interesting to see adoption of product from this Company by Automobile manufacturer as it is replacement to already popular ABS. As per Company website it is increasing its client base with time.
So that is a positive news. The Client base has Companies from different sectors like Johnson Control from Electronics division to Tata Motors from Automobile sector.
With focus on Electric vehicles Automobile Companies will look to decrease weight of Vehicles and at same time retain the durability of it. So plastics components will be in demand for sure.
This is an interesting Company to keep on radar.