Aditya Infotech shares jump 6% as Motilal Oswal sees strong growth runway

Aditya Infotech Ltd shares rose 6% on Wednesday after Motilal Oswal reiterated its positive view on the company, citing its leadership in India's surveillance market, supply-chain resilience and plans to expand into adjacent product categories and overseas markets.

In its October 13 business update, the brokerage said Aditya Infotech, which sells surveillance products under the CP PLUS brand, holds around 43.3% market share in India's structurally underpenetrated surveillance market. It said ongoing supply-chain challenges have further weakened competition, positioning CP PLUS to gain additional market share.

Aditya Infotech shares touched a high of Rs 4,619.10, up 5.74% from their previous close of Rs 4,368.15. The stock opened at Rs 4,368.35 and touched a low of Rs 4,307.25 during the session.

Motilal Oswal said, "Supply-chain resilience is becoming a competitive advantage for AIL. The supplies of critical components, including system-on-chips (SoCs), image sensors and memory, remain tight. It added that CP PLUS benefits from a diversified supplier base for non-Chinese SoCs and sensors, including Qualcomm, Ambarella, Augentix, Innofusion, Realtek SoC and Sony."

The report also noted that Aditya Infotech operates at around 10-15 times the scale of domestic peers and has the balance-sheet capacity to carry inventory. The brokerage said these factors give the company an advantage amid supply constraints.

Beyond its core surveillance business, Aditya Infotech is working on new product categories, including machine vision, industrial autonomous mobile robots, smart-home security products such as smart locks, video doorbells and door phones, and drone cameras. These products are at various stages of development and could expand the company's addressable market. The company is also exploring international markets.

Technology investments are another focus area. Aditya Infotech has research and development centres in Noida, Ahmedabad and Taiwan, and is developing new-age and AI-enabled products. Partnerships with Qualcomm and L&T Semiconductor are adding embedded-software and silicon capabilities, according to the report.

Motilal Oswal estimates revenue, Ebitda and profit after tax compound annual growth rates of 37%, 47% and 50%, respectively, over FY26-FY29. These projections reflect the brokerage's expectations for continued growth supported by the company's market position, supply-chain capabilities and expansion into new product segments.