ICICI Securities sees strong outlook for Aditya Infotech; retains 'Buy'

ICICI Securities remains upbeat on video security and surveillance products and services provider Aditya Infotech and has reiterated its Buy rating on the stock, citing the company’s strong market position and sustained growth prospects. The brokerage believes Aditya Infotech will continue to gain market share, supported by rising brand equity, manufacturing expansion, and favourable regulatory norms.

 

Following a recent management interaction, ICICI Securities retained its Buy call with a DCF-based target price of ₹1,800, implying a target P/E multiple of 46x FY28E earnings.

 

Among the key takeaways from the meeting, the brokerage highlighted the launch of two new brands—Eyra and Nexivue—aimed at capturing market share at the bottom of the pyramid. The company is also stepping up brand-building efforts through higher advertising spends and the rollout of CP Plus Galaxy stores. ICICI Securities expects the share of revenue from IP cameras to rise to over 90 per cent in the next three to four years. It added that smaller peers are likely to remain in an investment phase for the next two to three years, which could allow Aditya Infotech to sustain its market share.

 

 

The brokerage also pointed to the company’s partnership with Qualcomm for video security solutions as a long-term strategic growth driver. “With STQC norms and growing brand equity under the CP PLUS brand, AIL is well placed to gain market share and sustain profitable growth over the medium to long term,” said ICICI Securities.  CATCH STOCK MARKET LIVE UPDATES TODAY

Meanwhile here are the other key reasons behind the bullish view:

New brands to address white spaces across price points

ICICI Securities noted that Eyra and Nexivue have been introduced to target the lower end of the market. Eyra is well positioned to take market share from Dahua, while Nexivue is expected to gain traction in the unorganised and entry-level segments. “This multi-brand strategy allows the company to address consumers across price points without diluting core brand equity,” said the brokerage.

Continued focus on brand building

Management has indicated increased investments in brand building, including the expansion of CP Plus Galaxy stores and higher advertising spend intensity. Distribution efforts are also being strengthened in South and West India, where penetration remains relatively lower. ICICI Securities believes this sustained brand push is critical to driving consumer pull and supporting premiumisation.

Qualcomm partnership as a key differentiator

The exclusive partnership with Qualcomm is aimed at launching insight-driven, AI-enabled video security solutions. The collaboration combines Aditya Infotech’s product ecosystem and distribution strength with Qualcomm’s technology capabilities. “In our view, this enhances product differentiation and strengthens long-term customer stickiness,” said ICICI Securities.

 

(Disclaimer: The views and investment tips expressed by the brokerage in this article are their own and not those of the website or its management. Business Standard advises users to check with certified experts before taking any investment decisions.)