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There is keen interest of investors in the shares of Aditya Infotech, a famous company dealing in cameras and modern electronic surveillance equipment, which is the parent company of the popular brand ‘CP Plus’. Veteran brokerage firm Motilal Oswal Securities has started its coverage on this company and recommended buying it. After the brokerage report came out, the enthusiasm of investors has increased a lot.
Brokerage gives target of ₹4,200, expects 53% jump in bull case
Motilal Oswal has given ‘Buy’ rating on Aditya Infotech’s stock and set a base price target of ₹ 4,200 per share. This target indicates a potential upside of about 27% from the closing level of the last trading session.
Not only this, according to the brokerage’s ‘Bull Case’ scenario, this stock can also reach the level of ₹ 5,066 in the coming time, which means that investors can get huge profits of about 53% from the current price. After the report came out, the stock registered a strong rise of about 4.9% in early trading and reached the level of ₹ 3,464.
Company’s dominance in surveillance market
According to Motilal Oswal report, Aditya Infotech is in a strong position to make the most of India’s rapidly expanding video surveillance and security market. This single company has more than 44% share in the Indian surveillance market.
The brokerage estimates India’s video surveillance market to grow from ₹10,600 crore by FY2025 to ₹22,700 crore by FY2030. At the same time, Aditya Infotech’s revenue is expected to grow at a CAGR of 44% during FY 2026 to 2028, which is much higher than the estimated 16-18% growth rate of the entire industry.
STQC rules will increase competitive edge
Local and unorganized competition in the market is expected to reduce due to STQC (Standardization Testing and Quality Certification) rules implemented at the government level. This will benefit established companies like Aditya Infotech and the company’s market share may increase to more than 58% by FY 2028. The brokerage expects the company to see record growth in revenue, EBITDA and net profit (PAT) in the coming years.
Board approves raising ₹1,500 crore fund
Amidst all these business possibilities, the company has taken a big step to raise funds to accelerate its expansion and development plans. The board of Aditya Infotech has given the green signal to the proposal to raise capital up to ₹1,500 crore. The company will raise this amount through issuance of equity shares, Qualified Institutional Placement (QIP) or other legal means. For this, the approval of the shareholders will be taken through postal ballot.