Aditya Infotech shares: NIIs made Rs 1.3 lakh profit on listing day; time to book profits?

Shares of Aditya Infotech, which delivered a stellar listing pop to the investors on Tuesday, extended their gains during the maiden trading session. The manufacturer of CP Plus camera was listed at the bourses on Tuesday, August 05 with around 51 per cent premium on both BSE and NSE.

After a strong debut, Aditya Infotech shares rose another 7.56 per cent to hit Rs 1,095 on BSE, taking the overall gains to more than 62.22 per cent over its issue price of Rs 675 per share. The company commanded a total market capitalization of more than Rs 12,000 crore as of its day's high.

As of day's high, investors profit for each lot turned became Rs 9,240, while HNIs would have been sitting at Rs 1.3 lakh profit for 308 shares alloted to them. However, stock market analysts are suggesting investors to book profit on a partial basis after listing and suggesting to hold the remaining portion for the long term.

Aditya Infotech made a very strong debut on the stock market. It manufactures and provides video security and surveillance products, solutions and services under the brand name 'CP Plus'. It enjoys a virtual monopoly as a leader in the segment, said Shivani Nyati, Head of Wealth at Swastika Investmart.

"It posted growth in its top and bottom lines for the reported periods Financials depict robust growth and PAT more than doubled year-on-year, with strong operating margins and growing distribution scale. Investors are recommended to secure partial profits and retain the remainder with a stop-loss set at Rs 850," she added.

The IPO of Aditya Infotech was open for bidding between July 29 to July 31. It sold its shares in the range of Rs 640-675 apiece with a lot size of 22 equity shares. The company raised a total of Rs 1,300 crore via primary market route, which was subscribed more than 100 times overall.

At the listing price, Aditya Infotech trades at a P/E multiple of 52 times FY25 projected earnings, a notable premium to peers in the hardware and surveillance equipment space, said Sourav Choudhary, Managing Director at Raghunath Capital. Its brand strength, wide distribution network, and government-aligned product portfolio justify a valuation premium, this leaves limited room for near-term upside, he said.

"While short-term investors may book partial profits post-listing, long-term investors may consider accumulating on dips, particularly if the stock cools toward the ₹940–₹980 range, aligning valuations closer to sustainable earnings growth," he said.

New Delhi-based Aditya Infotech manufactures and provides video security and surveillance products, solutions and services under 'CP Plus' brand name. Brokerage firms were mostly positive on the issue, suggesting to subscribe it for long-term. ICICI Securities and IIFL Capital Services were the lead managers of the IPO, while MUFG Intime was the registrar for the issue.