Small-Cap Gem: Experts Predict 67% Upside in Krystal Integrated – Should You Buy for the Long Term?

Shares of small-cap company Krystal Integrated, which are currently trading 27% below their 52-week high, could see a strong comeback, according to experts. Thanks to the company’s focus on key sectors through government contracts, multiple revenue streams, and strong financial performance, analysts expect the stock to rise by up to 67% in the long run.

Krystal Integrated, which went public in March this year, is trading below its listing price of ₹785 on the NSE but remains above its IPO price of ₹715. Currently, the stock hovers around ₹750.

Technical Outlook

Sumeet Bagadia, Executive Director at Choice Broking, notes that Krystal Integrated shares have formed a strong support level at ₹700. The stock faces resistance in the ₹800 to ₹850 range, but breaking past this could lead to significant gains.

Bagadia advises current investors to hold their positions with a stop loss at ₹700. For those looking to buy, Bagadia suggests a “buy-and-hold” strategy with the same stop loss, aiming for short-term targets of ₹800 and ₹850.

Fundamental Analysis

Monarch Capital recently gave the stock a “BUY” rating with a target price of ₹1,230. They believe Krystal Integrated is a rising leader in the Integrated Facilities Management Services (IFMS) sector, which includes services like private security, staffing, and catering.

Krystal’s revenue has grown by 30% annually from FY21 to FY24, making it the fastest-growing company in its sector. It has outpaced competitors like SIS Ltd., UDS, and Quess Corp, whose growth ranges between 10% and 26%. Monarch Capital highlights Krystal’s ability to offer customized, bundled solutions and its strong management team as key factors driving its success. The company’s 50% growth in EBITDA also shows its profitability and operational efficiency.

Krystal is well-positioned in the market due to its focus on high-value sectors, especially government contracts. It also has growth potential in the B2C market, where it could leverage its expertise and brand to expand further.

Overall, Krystal Integrated’s strong growth, solid financials, and strategic focus make it an appealing investment for those looking for long-term returns.