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Thu, 20 Aug 2026
12:49:47 pm
Thu, 20 Aug 2026
12:49:47 pm
Rudransh Sangwan
Published at: August 20, 2026, 11:33 AM
Synopsis
Aditya Infotech shares rise 5% after Motilal Oswal initiates coverage with a Buy rating and ₹4,200 target, citing strong video surveillance growth, market share gains, manufacturing expansion and improving margins.
Shares of a leading security camera and video surveillance company rose 5% to ₹3,468.60 on August 20 after Motilal Oswal Securities initiated coverage with a Buy rating and a price target of ₹4,200. The target implies a potential upside of around 27% from the brokerage's reference price.
The brokerage expects the company to benefit from India's rapidly expanding video surveillance market. With more than 44% share of the domestic market and increasing demand for advanced security solutions, the company could remain well positioned as the industry expands through FY30.
The immediate trigger behind the stock's move was the initiation of coverage by Motilal Oswal Securities with a positive outlook. The brokerage believes the company's strong market position, increasing manufacturing capabilities and shift towards higher-margin products could support stronger growth over the coming years.
The brokerage estimates India's video surveillance market could more than double from ₹10,600 crore in FY25 to ₹22,700 crore by FY30. Against this backdrop, the company is expected to grow faster than the overall industry.
| Key factor | Details |
|---|---|
| Current share price | ₹3,468.60 |
| Today's gain | △ 5.00% |
| Brokerage rating | Buy |
| Price target | ₹4,200 |
| Potential upside | 27% |
| Current market share | 44%+ |
| Expected FY30 surveillance market | ₹22,700 crore |
Motilal Oswal expects the security solutions company to deliver strong financial growth between FY26 and FY28. The brokerage estimates revenue, EBITDA and profit after tax to grow at CAGRs of 44%, 58% and 64%, respectively.
The company is also expected to benefit from backward integration and greater in-house manufacturing. The brokerage expects operating margins to improve from 13.4% in FY26 to 15% in FY27 and 16.1% in FY28.
| Financial metric | FY26-FY28 expected CAGR |
|---|---|
| Revenue | 44% |
| EBITDA | 58% |
| Profit after tax | 64% |
| FY26 operating margin | 13.4% |
| FY27E operating margin | 15.0% |
| FY28E operating margin | 16.1% |
One of the major factors highlighted by the brokerage is the company's investment in manufacturing capabilities. Lens production capacity is expected to increase from 0.3 million pieces per month to 1 million pieces per month by FY28.
The company is also expanding into cables, plastics and metal components while investing in research and development. Its partnerships with L&T Semiconductor and Qualcomm Technologies are expected to support the development of AI-enabled and edge-based video security products.
Aditya Infotech is associated with the CP Plus brand and operates in India's video surveillance and security solutions market. The company has been expanding its manufacturing capabilities while increasing its focus on product development, technology and domestic production.
Its market position, manufacturing expansion and growing exposure to IP cameras and AI-enabled security solutions are key factors being watched by investors. The company's ability to execute these expansion plans will remain important for its future growth.
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The security camera stock's share price outlook has turned positive following Motilal Oswal's Buy rating and ₹4,200 target. The brokerage's expectations are based on strong industry growth, potential market-share gains, backward integration and improving operating margins.
At the same time, the stock has already delivered substantial gains over the past six months and one year. Investors may therefore watch the company's upcoming financial performance, margin expansion, manufacturing capacity additions and progress in AI-enabled security products to assess whether the projected growth can justify further upside.
The stock has delivered strong returns over longer periods despite its recent short-term weakness.
| Period | Return |
|---|---|
| 1 Day | △ 5.00% |
| 5 Days | 🔻 11.04% |
| 1 Month | 🔻 2.73% |
| 6 Months | △ 123.22% |
| 1 Year | △ 211.78% |
| 5 Years | △ 220.38% |
The six-month and one-year gains show that the stock has already witnessed a substantial re-rating. Investors may therefore focus on whether the company's earnings growth can support the elevated market expectations going forward.
Aditya Infotech shares were trading at ₹3,468.60 on August 20, 2026, after rising 5% during the session.
Aditya Infotech shares gained after Motilal Oswal initiated coverage with a Buy rating and a ₹4,200 price target, citing the company's strong position in India's growing video surveillance market.
Motilal Oswal has set a ₹4,200 target price for Aditya Infotech, indicating potential upside of around 27% from the brokerage's reference price.
Aditya Infotech currently commands more than 44% of India's video surveillance market, according to the brokerage's assessment.
The outlook remains positive, with expectations of strong revenue, EBITDA and profit growth between FY26 and FY28, supported by industry expansion, manufacturing capacity additions and higher-margin products.
Yes. India's video surveillance market is estimated to increase from ₹10,600 crore in FY25 to ₹22,700 crore by FY30, creating a potentially large growth opportunity for Aditya Infotech.
Key growth drivers include increasing demand for video surveillance, higher adoption of IP cameras, manufacturing expansion, backward integration, AI-enabled security products and greater in-house production.
The near- to medium-term outlook will depend on earnings growth, margin expansion, market-share gains and execution of manufacturing and technology expansion plans. The ₹4,200 target from Motilal Oswal provides a positive brokerage view, although investors should consider market and valuation risks.
Yes. The stock gained 123.22% over six months and 211.78% over one year based on the figures provided, indicating a substantial re-rating in the stock.
CP Plus is the key brand associated with Aditya Infotech and operates in the video surveillance and security solutions market.
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