Krystal Integrated Services saw its stock climb 8.5% to ₹883.90 per share in today’s intraday trade following the initiation of coverage by Nuvama Professional Clients Group. The brokerage set a target price of ₹1,369 per share, indicating a potential upside of 68% from the stock’s latest closing price of ₹814.
Krystal Integrated Services, a prominent player in India’s integrated facilities management services sector, operates across diverse segments including healthcare, education, public administration, airports, railways, metro infrastructure, and retail. The company debuted on the Indian secondary market on March 21 at ₹713, closely aligned with its IPO price of ₹715.
Since its listing, the stock has shown modest growth, currently trading 14% above its issue price. However, Nuvama Professional Clients Group forecasts substantial potential growth, believing the stock is undervalued compared to its industry peers.
Comprehensive Service Provider Across Industries
Krystal Integrated Services offers a comprehensive range of integrated facilities management services encompassing soft services like housekeeping, sanitation, landscaping, and gardening, as well as hard services including mechanical, electrical, and plumbing maintenance. The company also provides specialized services such as waste management, pest control, and facade cleaning, in addition to production support, warehouse management, and airport management services. This diversified service portfolio enables Krystal to serve a wide array of sectors, positioning it as a preferred one-stop solution provider for its clients.
Prime Position to Capitalize on Industry Trends
With 77.6% of its revenue derived from government contracts, Krystal Integrated Services holds a strong market position. The company’s revenue streams are diversified across Integrated Facilities Management Services (54.7%), Staffing Services (31.7%), Security Services (10.7%), and Catering Services (2.9%). The brokerage underscores Krystal’s ability to benefit from the increasing trend of outsourcing facility management services by the government.
According to projections, the outsourced government IFM market is slated to grow significantly, presenting ample growth opportunities for Krystal. The company’s expertise in sectors like healthcare, education, and infrastructure, which collectively contribute approximately 55% to its revenue, positions it well for sustained growth.
Robust Growth Prospects
Nuvama Professional Clients Group anticipates Krystal Integrated Services to achieve a 27% CAGR in revenue over FY24–26E, driven by robust client acquisition, aggressive bidding for lucrative government contracts, and market share expansion. The brokerage also forecasts an expansion in EBITDA margin by 93 basis points and a 39.6% CAGR in PAT over the same period, supported by operational efficiencies and the high-margin catering business.
At present, the stock trades at 11.1x/7x FY26E earnings/EBITDA, indicating a discounted valuation compared to peers with similar service profiles. Given its strong earnings visibility and attractive valuations, Nuvama Professional Clients Group maintains a positive outlook on Krystal Integrated Services.
Disclaimer: The views expressed in this article are those of individual analysts and not necessarily reflective of Legal Parivar opinion. Investors are advised to seek advice from certified experts before making investment decisions.
