Motilal Oswal Initiates Coverage of Aditya Infotech, Sees Up to 27% Upside
Key Takeaways
- •Motilal Oswal initiated coverage of Aditya Infotech with an estimated upside of up to 27%.
- •The brokerage pointed to strong demand in the surveillance segment and a rising market share as positives.
- •Motilal Oswal expects revenue and profit to grow strongly through FY28, supported by higher-value products and backward integration.
- •Aditya Infotech is the parent company of CP Plus, which supplies CCTV and surveillance products in India.
- •STQC certification requirements for surveillance equipment are part of the regulatory backdrop supporting the brokerage's view.
Motilal Oswal has initiated coverage of Aditya Infotech, estimating potential upside of up to 27% for the stock, according to a report published by Economic Times Markets on August 21, 2026.
The brokerage's positive stance rests on several drivers: strong demand in the surveillance segment, the company's rising market share, compliance with STQC norms, and improving margins. Motilal Oswal also expects robust revenue and profit growth through FY28 — the Indian financial year ending March 2028 — supported by a shift toward higher-value products, backward integration, and lower competitive intensity in the industry.
What is Aditya Infotech?
Aditya Infotech is the parent company of CP Plus, a leading Indian brand in the CCTV and video surveillance market. The company supplies electronic security and surveillance products used by businesses, government bodies, and households across India. The brand competes with global suppliers including China's Hikvision and Dahua, which have long held a substantial presence in the Indian market.
What are STQC norms?
STQC stands for Standardisation Testing and Quality Certification, a certification framework administered under India's Ministry of Electronics and Information Technology. The Indian government has moved to require certification for surveillance equipment such as CCTV cameras, and Motilal Oswal lists these norms among the factors underpinning its decision to initiate coverage of the stock.
The certification push sits within a broader policy direction in Indian electronics: the government has promoted domestic manufacturing under initiatives such as Make in India, and advisories in recent years have discouraged the use of Chinese surveillance equipment in sensitive government installations. Requirements of this kind raise the compliance bar for import-reliant suppliers, and Motilal Oswal's expectation of lower competitive intensity in the industry comes against this regulatory backdrop.
About the brokerage
Motilal Oswal is an established Indian financial services firm offering broking, research, investment banking, and asset management services. An initiation of coverage marks the start of a brokerage's formal research coverage on a stock.
Source: This article is based on Economic Times Markets reporting by Rounak Khare.
