August 29, 2025
I recently came across an interesting incident on social media.
A foreign tourist who visited China became confused and searched for clues from a local citizen. However, he did not understand the answer because of communication and language issues.
What happened afterwards made an impression on me. The local made it a point to personally guide and walk with the tourist to the destination itself.
Impressive, right?
Well, not really. There is a twist.
The person who shared this story suggested that this was not just a friendly act. It was an action of calculated self -interest.
You see, in parts of China, where surveillance cameras are practically everywhere, people are scored on the basis of their behavior – a concept known as the ‘Social Credit System’.
Good behavior can bring you benefits; Poor behavior can cost you access or privileges. So the helpful local may play in front of the cameras, hoping to earn social credit as a ‘good citizen’.
This immediately reminded me of George Orwell’s 1984, a hair -raising representation of a society that Big Brother always looks at. It is fiction, but in some respects prophetic – especially when we look at how deep and wide surveillance technology modern societies has penetrated.
While I was looking for the post again (without good luck), I came across an old article that said Chongqing, a large Chinese city, had one surveillance camera for every 5.9 people – and that was in 2019. You can only imagine how far it has gone since then.
But surveillance, for all its dystopian associations, is not completely dark.
Technology has even made it smarter – and in many ways more useful.
Nowadays, AI-driven face recognition can take you through the airport’s queues faster. With platforms such as Digiyatra, boarding on a flight is smoother and faster.
The crime cases can be cracked faster. Traffic rules have followed better. Parents can follow their babies at a distance while they are gone for work.
And only the presence of a camera often brings a sense of safety – whether you walk on the street or work in an office building.
This shift is also underway in India. Surveillance is not only common – it is made mandatory in certain places.
In July of this year, CBSE made it mandatory for all schools to install CCTV systems in common areas – classrooms, libraries and corridors.
Recently even the voting process was examined, whereby the opposition CCTV images of vocal cords demanded to guarantee the integrity of the elections.
With terrorist actions in the elevator, video surveillance is useful in guaranteeing national security.
Of course this all creates a tail wind for the video surveillance industry. In FY25, the global market for security equipment – including cameras, recorders, encoders and software – was appreciated at around US $ 35.9 billion. It is expected that it will grow with a CAGR of more than 10% over the next five years.
The Indian market, although smaller at US $ 1.3 billion (or RS 106 BN), grows even faster – per nearly 16.5% per year (source: Frost and Sullivan).
A company that is in the middle of this growth is Aditya Infotech – the company behind the CP Plus brand.
You have probably seen their products in houses, offices or shops. CP Plus is the undisputed leader in the Indian surveillance market, with a share of more than 20.8%. It is also the third largest worldwide player per volume from FY24. The company has recently been mentioned and runs on various positive waves.
First the regulation. In April 2025, the Ministry of Electronics and Information Technology (Meity) mandated that all Network CCTV cameras that are sold in India must be certified STQC (standardization tests and quality certification). It is intended to eradicate cheap and uncertain imports that can have poor quality or a threat to data security.
This is positive for domestic players who meet these standards. CP Plus, for example, claims to have the largest portfolio of STQC and BIS-certified products that are currently on the Indian market.
With non-certified inventory that is phased and customers of the government and companies that tend to safe, certified systems, the company is well positioned to record more market share.
It is not only compliance where the company is strong. It also expands on the front of innovation. It has set up an R&D center in Ahmedabad. Another R&D center is going on in Taiwan.
The company also works on backward integration – making its own cables, enclosures, power electronics and even CCTV lenses. This helps to lower the costs, build up the resilience of the supply chain and improve control over quality.
Earlier it had an interest of 50% in a production of joint venture with Dixon Technologies, the top EMS player of India. It now has 100% of it. Dixon in turn kept around 6.6% of Aditya Infotech.
CP Plus is also not just about hardware. It offers cloud storage, AI-driven video analyzes and an IoT-based platform for security services.
The customer base is diversified – with 60% revenue from small and medium -sized companies, 30% of large companies and the government, and the remaining 10% of home users.
The company gambles big on its IP – based products – a segment that grows faster and offers a higher value compared to traditional analogue security systems.
The company that is used about RS 3.75 billion of the IPO is going to reduce the debts to reduce the debts and is now investing in capacity expansion. After the expansion, the turnover growth potential could reach 60%.
For FY26, management leads sales growth of 25-30%, operational margins of 10-11% and expects EBITDA and Netto profit to grow more than 50% and 75% respectively-such and operational leverage.
Yes, the rear PE ratio is about 97 times very high, but if the company provides its profit guidance, the forward PE drops to a reasonable 24 times.
Now, for a market leader with a high growth potential, this is a scenario that is worth seeing. It is still to be seen how cheap the share price will act in the future.
Just like any other story, it has its mistakes. The company is highly dependent on one type of product category. There are challenges for Supply Chain and the company must maintain rapid technological change to stay ahead of the competition.
The company is working capital intensive. These are risks that investors must keep in mind.
That said, in a world where surveillance becomes a norm, even needs, this is a stock that is worth being on your watchist.
Warm greetings,
Richa Agarwal
Editor and research analyst, Hidden
EquityMaster Research Private Limited (formerly EquityMaster Agora Research Private Limited) (research analyst)
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