Shares of security surveillance product maker Aditya Infotech — the parent company of the CP Plus surveillance brand — jumped 5% after domestic brokerage Motilal Oswal initiated coverage on the stock with a 'Buy' rating, flagging 27% upside for the shares. The brokerage's 'bull case' projects a 53% upside.

The coverage initiation comes on the heels of the company's June-quarter results. Following the Q1 numbers, Aditya Infotech reiterated its Earnings Before Interest, Tax, Depreciation and Amortisation (EBITDA) margin guidance of 14-15% for FY27. The company reported an EBITDA margin of 14.5% in Q1FY27.

Motilal Oswal said it sees a strong market opportunity in the surveillance products segment, according to the brokerage's note cited by CNBC-TV18. The segment has been a growth market in India, with demand driven by government-backed smart city and safe city deployments as well as expanding use of surveillance systems by businesses and households.

Separately, Aditya Infotech's board has approved a ₹1,500 crore fundraising plan. The company had earlier announced the board approval for the ₹1,500 crore fundraise via QIP. A Qualified Institutional Placement is a route through which listed companies raise money by issuing shares to qualified institutional buyers. The deployment of the ₹1,500 crore, along with quarterly progress against the reiterated 14-15% EBITDA margin guidance, will be among the key monitorables from here.

Source: CNBC-TV18