Domestic brokerage firm Motilal Oswal Financial Services (MOFSL) has initiated coverage on Aditya Infotech Ltd., the operator of the CP Plus brand, with a 'Buy' rating and has set a target price of ₹4,200, implying a potential upside of 27% from the current market price of ₹3,468.60. According to Business Standard, the stock rose 2.8% to a day's high of ₹3,566 on Friday's early morning session, following the coverage initiation. The brokerage's bull case scenario suggests the stock could reach as high as ₹5,066, representing a 53% upside potential. As per CNBC TV18, the stock had previously risen as much as 4.9% to ₹3,464 on Thursday, August 20, following the coverage initiation.
Aditya Infotech has emerged as the pioneer in the rapidly growing video surveillance market in India through its well-regarded brand "CP Plus". The company operates as the third-largest Closed Circuit Television (CCTV) manufacturer in the world and commands more than 44% market share in the video surveillance market. As reported by Motilal Oswal, the company has established a strong distribution network with 1,000+ distributors and 2,500+ system integrators, positioning it well to benefit from the growing demand in the video surveillance sector. According to Business Standard, the brokerage expects the company's market share in the video surveillance market to increase from 44% to over 58% by FY28, driven by the implementation of Standardisation Testing and Quality Certificate (STQC) norms for CCTVs.
The company is evolving from an assembler to a manufacturer and is now becoming a technologically AI-driven products and platform provider for the security and surveillance market. According to Motilal Oswal's research report, the company is well-positioned to register robust growth on account of structural tailwinds in the video surveillance industry, coupled with the unlocking of massive growth opportunities after the implementation of STQC norms. Motilal Oswal expects the company's revenue to grow at a 44% compound annual growth rate (CAGR) between FY26 and FY28, significantly ahead of the industry's estimated 16%-18% growth. The brokerage anticipates revenue, EBITDA and profit after tax growth of 44%, 58% and 64% respectively over FY26-FY28, with EBITDA margins expected to improve to 14-15% for FY27. As per Business Standard, the growth will be aided by robust volume growth and improvement in realisation due to the imminent price hikes and evolution of the product mix towards higher-value products.
Recent financial data shows Aditya Infotech delivered strong performance with total income of ₹1,406.53 crore in June 2026, representing a 24.46% growth from ₹1,143.80 crore in December 2025. The company's EBIT margin improved to 13.86% in June 2026 from 11.57% in December 2025, while profit after tax reached ₹142.20 crore with a PAT growth of 76.21% compared to ₹84.06 crore in the previous quarter. The company's basic EPS stood at ₹12.07 in June 2026, demonstrating robust operational performance across key financial metrics. Following its June-quarter results, Aditya Infotech reiterated its EBITDA margin guidance of 14-15% for FY27, against an EBITDA margin of 14.5% in Q1FY27.
The stock has shown exceptional momentum with share price rising 428% from its IPO price of ₹675 per share and 132% growth on a year-to-date basis. As reported by Business Standard, the stock, which listed on the bourses in August last year, has delivered phenomenal returns. The stock has already risen 125% so far this year, demonstrating strong investor confidence. The company's board approved a proposal to raise up to ₹1,500 crore through equity shares on August 19, 2026. The fundraise could be undertaken through one or more permissible routes, including a public issue or qualified institutional placement (QIP), or a combination of these methods. The company has scheduled one-on-one and group meetings with institutional investors in Mumbai from August 24-26 and in Singapore from September 1-3 to engage with potential investors. As of June 30, 2026, the promoter held 74.71% stake in the company with no pledging, while foreign institutional investors increased their holdings to 6.35% from 5.72% in March 2026.
