Risk factor
Poor trading liquidity
Profitability factor
Very strong margins and returns
About
Kingfa Science & Technology (India) Limited, headquartered in Chennai, India, is a prominent manufacturer and supplier of advanced polymer solutions within the country. The company specializes in producing reinforced polypropylene compounds and fiber-reinforced composites. Their comprehensive product lineup further includes HYPRENE-branded thermoplastic elastomers, POM, fiberglass honeycomb composite panels, LFT (Long Fiber Thermoplastic) and PA6/PA66 materials, a diverse array of engineering plastics compounds, and high-temperature resistant nylon/LCP (Liquid Crystal Polymer) solutions. These versatile materials find extensive application across numerous industries, serving sectors such as automotive manufacturing, electronic appliances, industrial equipment, consumer goods, packaging, and even toys. Established in 1983, the company previously operated under the name Hydro S&S Industries Limited until its rebranding as Kingfa Science & Technology (India) Limited in March 2016. It functions as a subsidiary of Kingfa Sci. & Tech. Co., Ltd.
Company Valuation
Based on key historical and expected multiples, the stock is greatly overvalued relative to its peers. Specifically, the stock is 'expensive' on P/E, overvalued on EV/EBI