Multibagger stock: Can Kingfa Science get its Mojo back?
The company will be conducting its 36th annual general meeting (AGM) on September 29, 2020. The stock has generated returns of 29 per cent on an annualised basis in the past 10 years. However, since the last three years, the stock has underperformed heavily, generating negative of 15.30 per cent on an annualised basis.
The management of the company is upbeat on business prospects as the entrant of new automobile brands in India offers a big opportunity for the company. The new requirements for the entrants are the major demand triggers for Kingfa. The company also stands to gain by supplying the material needs of the new brands, entering India from abroad into the Indian space of appliances segment.
The current RoE stands at 7.32 per cent while the stock is trading at a P/E multiple of 42.55. The sales have grown by 20.19 per cent CAGR over the past three years. Over the last five years, the company has delivered a good profit growth of 58.39 per cent. Over the past three years, the profit, however, has grown by 25.69 (CAGR) per cent. The company is virtually debt-free.
At 11 am on Wednesday, the stock of Kingfa Science & Technology was trading at Rs 449.10 per share, lower by 0.17 per cent or Rs 0.75 per share on BSE, against a 0.62 per cent decline in the benchmark index. The 52-week high is recorded at Rs 710 and the 52-week low is Rs 306 on BSE.