Krystal Integrated Services Stock Poised for 66% Surge: Monarch Networth’s Bullish Call on Fast-Growing IFMS Leader

Monarch Networth Capital, a well-known brokerage firm, has maintained its positive outlook on Krystal Integrated Services, predicting a 66% increase in the stock’s value. In a recent note, the firm highlighted Krystal’s strong expansion plans into new cities, potential for winning big contracts in Integrated Facility Management Services (IFMS) and security services, and its focus on fast-growing sectors like airports and waste management.

Krystal is considered the fastest-growing company in the IFMS sector, expected to achieve a 30% growth in revenue and a 50% growth in earnings before interest, taxes, depreciation, and amortization (EBITDA) between FY21 and FY24. The company provides a variety of services, including IFMS, security, staffing, and catering, making it a one-stop solution for clients. Its tailored services help it stand out from competitors.

Krystal earns 77% of its revenue from government contracts, with a 100% renewal rate in FY24. The brokerage believes Krystal will benefit from India’s infrastructure growth, with strong private clients like HDFC Bank and Phoenix Mills adding to its success. Krystal also has a solid foundation in the business-to-business (B2B) market, and there is potential for growth in the business-to-consumer (B2C) space.

66% Potential Upside

Monarch Networth has given Krystal’s stock a ‘buy’ rating, with a target price of ₹1,230 per share, indicating a 66% increase from its last closing price of ₹742. Krystal was listed on the Indian stock market in March at ₹713, close to its IPO price of ₹715. The stock saw a 29% rise, peaking at ₹1,023.75 in April 2024, but has since dropped 27.5% from its all-time high.

Future Growth

Monarch Networth expects Krystal’s revenue to grow by 23%, EBITDA by 29.3%, and profit after tax (PAT) by 34.8% from FY24 to FY27. This growth is expected to come from an increasing customer base, more government contracts, and high renewal rates from existing clients.

In the near term, Krystal’s expansion into cities like Delhi, Madhya Pradesh, Chennai, and Hyderabad will boost revenue as it grows its pan-India presence. The company is also in talks with private companies, including a large multiplex chain, for new IFMS and security service contracts.

Krystal is also expanding into high-growth sectors like airport management and waste management, where demand for its services is rising due to projects from both the government and private sector. Krystal’s previous work on Mumbai Metro Line 2 also positions it as a strong candidate for the Line 3 contract, presenting further growth opportunities.