Domestic brokerage firm Monarch Networth Capital, in its latest note, reaffirmed its bullish view on Krystal Integrated Services, highlighting the company’s robust expansion plans into new cities, potential deal wins in Integrated Facility Management Services (IFMS) and security services, and focus on high-growth sectors like airport and waste management
The brokerage claims that Krystal is the fastest-growing IFMS company, with the potential to outpace rivals with customized, bundled services and achieve a 30% revenue CAGR and 50% EBITDA CAGR from FY21 to FY24. Serving as a one-stop shop, Krystal streamlines customer operations by providing services like personnel, catering, security, and IFMS.
The brokerage thinks Krystal is well-positioned to profit from India’s infrastructure boom, supported by a strong private clientele that includes HDFC Bank and Phoenix Mills, with 77% of revenue originating from government contracts and a 100% renewal rate in FY24.
Significant revenue development opportunities are also presented by Krystal’s possible foray into the B2C sector and strong B2B foundation. 66% increase in value on cards With a target price of ₹1230 per share, the brokerage kept its ‘buy’ recommendation on the stock. This suggests that the stock could rise 66% from its most recent closing price of ₹742.
In March, the firm made its debut on the secondary market in India, listing at ₹713, which was just less than its IPO price of ₹715. The stock saw a notable 29% gain following its debut, peaking at ₹1,023.75 on April 12, 2024.