Krystal Integrated Services Wins The Maharashtra Govt. Work Orders Worth Rs 800 Mn

One of the top integrated facility management companies, Krystal Integrated Services Limited (BSE: 544148, NSE: KRYSTAL) was recently awarded two important contracts from the Directorate of Medical Education and Research Maharashtra. This has now been expanded to several medical colleges and hospitals across the state with an annual value of Rs 800 million contracts.

The first contract is a three-year agreement with the value of Rs 550 million annually where Krystal is retained on the provision of overall facilities management support. This encompasses such areas as cleaning, building and maintenance, landscaping, security, catering, and administrative tasks in order to make sure the institutions are healthy and functional within established hygienic practices. The second contract is for a duration of 5 years and has a value of 250 million per annum which enables Krystal to provide staffing services covering a wide range of personnel categories, in public works contracting which is further diversification of Krystal's operations.

Besides the above contracts in the health area, Krystal has also won a waste management contract worth Rs 714 million from the Thane Municipal Corporation. This particular contract is for Mumbra and will be valid till July 2026 and will be subject to further extensions on a yearly basis.

Recently, Monarch Networth Capital commenced Hedging and marked a 'Buy' value to the company with a target of Rs 1230 per share giving an upside of 62%. In Monarch's report on Krystal, they report the company's liberalization and expansion into various service-inclusive offerings under the Integrated Facilities Management Services including IFMS, private security, staffing, and catering. And lastly, they discuss the IFMC sector CAGR of 30% from FY21 to FY24. According to Monarch, the secret behind these outstanding outcomes is the ability of the company to provide good management of projects through integrated consumer-based and management-inspired solutions.

Nuvama also placed its touch on the coverage of Krystal and has come up with a target price of Rs 1369 per share. In conjunction with Nuvama insurance services, it is expected that Krystal IFMS, staffing, and security will grow much faster relative to the market where they project a growth multiple of 1.2-5x during the forecasted period FY23 to FY26. The firm highlighted that, over the last decade, Krystal has been doing very well and registering a revenue compounded annual growth rate of approximately 19%, as a result of new contracts, prevailing industry tailwinds, and efforts in providing high-quality services.

Nuvama expects consistent growth in its revenue and profits in the next three years with sales, EBITDA and PAT growth of 27%, 36% and 40%, respectively.

An integrated facility management services company in India, Krystal caters to industries like healthcare, education, government, airports, and high street retail. It provides general services including, availing facilities staffing solutions, private security as well as catering. For the last three financial years, Krystal has grown its clients' portfolio and by FY23 served 326 clients boosted from 262 in FY21 and over 2400 customer locations across India.