Aditya Infotech is likely to continue gaining market share due to increased brand equity, manufacturing expansion, and favorable regulatory norms. This insight emerged from a recent management meet, where the company outlined its strategies for growth.
Key Takeaways from the Management Meet
- Launched two new brands, Eyra and Nexivue, to capture market share at the lower end of the market.
- Focusing on brand building by increasing advertising spend and launching galaxy stores.
- Revenue share from IP cameras is rising and expected to increase to over 90% in the next 3-4 years.
- Smaller competitors are likely to remain in investment mode for the next 2-3 years, providing Aditya Infotech with an opportunity to sustain its market share.
- Partnership with Qualcomm for video security solutions is a long-term strategic growth driver.
Investment Recommendation
Based on these findings, the recommendation is to maintain a BUY position with a target price of INR 1,800, implying a target P/E of 46x FY28E EPS.
Disclaimer
Remember, this is a perspective based on research and analysis. It's essential to do your own research and consult with certified experts before making any investment decisions.