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Aditya Infotech Stock Surges Amidst Investor Shift
11 Mar
Summary
- Mutual funds bought significant stakes while promoters sold shares.
- Aditya Infotech leads India's surveillance market with 38.9% share.
- Company plans aggressive capacity expansion by 2027.
As of February 25, 2025, institutional investors, including mutual funds, have shown strong interest in Aditya Infotech Limited, a prominent video security and surveillance products manufacturer under the CP Plus brand. This occurred while promoters and Dixon Technologies divested their stakes. Kotak Mahindra Mutual Fund and Motilal Oswal Mutual Fund were notable buyers, investing significantly in block and bulk deals. Foreign institutional investors also participated in the buying.
Aditya Infotech holds a dominant 38.9% market share in India's video surveillance industry and is recognized as a leading brand across Asia. The company is forging strategic collaborations, including one with Qualcomm for AI-led video intelligence products and a joint venture for manufacturing cables.
Aggressive expansion plans are underway, with a new housing plant in Kadapa, Andhra Pradesh, set to be operational in phases by Q2FY27 and Q4FY27. Lens assembly capacity is projected to increase significantly by Q1FY27 and reach 10 lakh units monthly by the end of FY27.
The company is navigating industry headwinds like semiconductor shortages through multi-SoC strategies and robust procurement agreements. Financially, 9MFY26 saw substantial YoY growth in sales and EBITDA. Adjusted profit after tax also surged by 138.6%, with a return on capital employed of 19.5%.
