Krystal Integrat (KRYSTAL)

FairStock Score: 35/100 — MIXED

Score breakdown: P/E: 2/3 · ROCE: 1/2 · Growth: 0/2 · Dividend: 0/1

Key Financials

Strengths

• Low leverage with Debt/Equity of 0.22 provides financial stability
• ROE of 14.40% and ROCE of 16.82% indicate reasonable capital efficiency
• Promoter holding of 69.96% aligns management interests with minority shareholders
• Latest quarter shows steady scale with ₹260 Cr sales and ₹14 Cr net profit

Concerns

• Near-zero growth: sales up only 1.13% and profit down 1.39%
• Valuation not cheap: P/E 15.18, P/B 1.91, and PEG 13.43 for a stagnant business
• Weak fundamental score: Piotroski F-Score 4/9 and FairStock Score 26/100 indicate risk
• Negligible dividend yield of 0.24% offers little return to patient shareholders

AI Analysis

At first glance, Krystal Integrat looks financially stable: debt/equity is just 0.22, ROE is 14.40%, and ROCE is 16.82%. Those are acceptable numbers. But I learned from Graham that a business must be judged by its future earning power, not just its balance sheet. Here, the operating story is thin. Sales growth over the latest period is a mere 1.13%, and profit has fallen 1.39%. That is not growth; that is stagnation. I see no clear moat — diversified commercial services is a competitive field where pricing power is hard to build. The Piotroski F-Score of 4/9 reinforces my concern: the company is not getting fundamentally stronger. At ₹574, the market cap is ₹874 Cr, or about 15.18 times earnings. For a business with negative profit growth, that is not a bargain. The PEG ratio of 13.43 is absurd. Book value per share of ₹301.27 provides some support, but paying 1.91 times book for negligible growth means little margin of safety. The dividend yield of 0.24% is trivial, so I am not compensated while I wait. Promoter holding of 69.96% is positive, and the latest quarter’s ₹260 Cr sales and ₹14 Cr profit show the company is not in distress. Yet the FairStock Score of 26/100 tells me this is a risky, low-quality equity at this moment. As Buffett would say, it is far better to buy a wonderful company at a fair price than a mediocre one at any price. Krystal may have decent financial health, but it lacks both growth and a compelling valuation. I will pass.

Data from BSE/NSE filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer