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BACKGROUND

Aditya Infotech Ltd (AIL) operates in the security and surveillance industry, specifically in the video security and surveillance segment. Co basically is a prominent player in the security and surveillance industry with ~ 21% market share and a strong brand presence of name “CP Plus” and they have a catchy tagline “Uparwala sab dekh raha”. It has a manufacturing facility in Kadapa, Andhra Pradesh, with an installed capacity of 15.59 mn units’ pa and dedicated R&D facility in Noida, Uttar Pradesh, focusing on innovation and product development. Further it operates across 550+ cities and towns in India with a strong distribution network of 1,000+ channel partners and 41 branch offices.

Objects and Details of the Issue: The issue is a combination of fresh issue of 0.74 cr shares of ~ Rs 500 cr and offer for sale of 1.19 cr shares of ~ Rs 800 cr totaling to Rs.1300 cr. Co plans to repay debt of Rs.375cr and General corporate purposes.

Investment Rationale:

1. Largest provider of video security and surveillance products, solutions and services.

2. Comprehensive portfolio of electronic security products providing end to end services.

3. Growing thrust for video surveillance market in India.

4. Advanced manufacturing with R&D capabilities with focus on quality.

5. Robust Financial Performance.

Valuation and Recommendation:-

AIL is very well placed in a growing demand of video surveillance market backed by enhanced product portfolio and R&D capabilities. With government’s thrust for ‘Make in India’ augmentation, AIL with 21% market leadership abodes well to benefit widely. Co’s Revenues/Ebidta has grown at a cagr of 17%/24% over FY23- 25. We believe IPO is fairly priced at a 53x its FY25 earnings when compared to other consumer durable players. However looking at the growth prospects for the Co, we recommend ‘Subscribe’ to the issue.

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SEBI Registration number is INH00000176