Shares of this plastic products company locked at 5 per cent upper circuit, here's why!

The company continues to retain and reinforce its market leadership in modified thermoplastics with a pan India network of operations, having plants and warehouses situated in auto hubs and industrial belts

On Tuesday, shares of Kingfa Science & Technology (India) saw a solid price-volume break and froze at 5 per cent upper circuit, recording an intra-day high of Rs 1,166.40 per share on BSE. The scrip witnessed 3.4 times spurt in volume in today's session.  

Kingfa Science & Technology (India) a subsidiary company of M/s Kingfa Science & Technology Co Ltd China. It is engaged in the business of manufacturing and supply of high-quality modified plastic compounds for automotive and consumer products and personal protective equipments like masks and gloves. The company has manufacturing facilities situated at Pune, Puducherry and Manesar.  

The company is also present in the electric vehicles (EV) segment and has successfully commercialized flame-retardant compound for 2-wheeler segments in EV. It is also working with OEMs for the passenger vehicles as well. 

For FY22, the company reported a YoY top-line growth of 67.04 per cent. The net revenue from operations for FY22 stood at Rs 1,047.71 crore compared with Rs 627.23 crore in FY21. Net profit for the year stood at Rs 30.63 crore, up by 5.75 times as against Rs 5.32 crore reported in the previous year. 

The company continues to retain and reinforce its market leadership in modified thermoplastics with a pan India network of operations, having plants and warehouses situated in auto hubs and industrial belts. 

With economic activity picking up pace, it is expected that Kingfa Science & Technology (India) might post record growth in topline and bottomline, coupled with improving margins for Q2FY23. Investors should keep this trending stock on their radar for the upcoming sessions.