At a Glance

Prizor Viztech, the ₹217 Cr SME darling in security cameras, has quietly built a 50 lakh unit CCTV facility and posted 8x profit growth in 2 years. ROE? A mind-boggling 41%. But before you dream of Kaynes-like riches, remember: low liquidity, no dividends, and rising working capital are lurking in the shadows.

🏭 1. What business is this?

• Prizor Viztech Ltd (PVL) was incorporated in 2017 and deals in:
  • 🛜 CCTV cameras & video surveillance
  • 📺 Interactive educational panels
• The company recently inaugurated a massive CCTV manufacturing facility with a capacity of 50 lakh units — a move that screams Make in India, Sell in Bharat.
• Certifications galore:
  • ISO 9001, 14001, 27001 etc.
  • Also recently got “SME 1” credit rating from Infomerics — the SME world’s version of a blue tick.

👨‍💼 Promoters hold 68.3%, no pledging. Institutions have just started sniffing around with 1.4% FII holding. And public? Haan bhai, 30% is already retail trapped—err, invested.

📈 2. Financial Performance – Real Growth or Just Zoom Lens?

📸 Zoomed in View:

• 3-year CAGR for sales: 102%
• 3-year PAT CAGR: 533%
• Operating margin has jumped from 2% → 21%
• ROE = Legendary (but tapering from 72% to 41%)

🚨 One red flag: EPS collapsed from ₹69 in FY24 to ₹9.49 in FY25. Why? Post-IPO dilution, as equity jumped from ₹0.8 Cr to ₹11 Cr.

🧾 3. Balance Sheet – Small Cap, Big Ambitions

🧂 Salty Bits:

• Cash Flow is negative every year — in FY25, it burned ₹14 Cr in operations.
• Inventory-heavy model. High Working Capital Days → capital gets locked up.
• Debtor Days have improved but are still high at 81.

🥊 4. Peers? Kaynes? Syrma? Or Just the CCTV Shaadi Vendor?

Let’s compare Prizor Viztech with some established industrial electronics players:

📌 Takeaway:

• Prizor has industry-best ROCE, despite being the smallest in size.
• Valuation is reasonable at 21.4x PE, especially when Kaynes is frothing at 127x.
• Market Cap to Sales (FY25): Just 3x — very sane by SME standards.

⚠️ 5. Risks – No CCTV Can Save These

• Low float SME stock – Circuit to circuit action possible, especially at ₹203 CMP.
• No dividend, despite 41% ROE. All cash being reinvested or burnt in working capital.
• Cash flow negative for 4 years straight.
• Inventory days are a monster → 200 days = 7 months of stock lying idle.

📉 Recent exchange notice: NSE asked for clarification on Q4 results. Keep an eye out for any accounting grey areas.

🔍 6. Fair Value Estimate (EduInvesting Model)

We apply a conservative multiple due to size, liquidity, and SME status.

• FY25 PAT = ₹10 Cr
• Assume FY26 PAT growth of 30% → ₹13 Cr
• EPS FY26 = ₹13 Cr / 11 Cr shares = ₹11.8
• Assign PE Range = 20x–30x (vs peers at 50x–100x)

🎯 Fair Value Range = ₹236 – ₹354

👉 Current CMP: ₹203
📈 Upside potential: +16% to +74% if growth sustains and re-rating happens.

🧠 7. EduInvesting Verdict – “Small Cap Surveillance with Large Cap Ambitions”

🎥 This stock is not just filming weddings anymore.

• ✅ ROE monster, growth double-digit, and now certified “SME 1”
• ✅ Reasonable valuation for an SME with scalable infra and margin expansion
• ⚠️ Liquidity, cash flow issues, and low institutional interest still hold it back

Can it become the Kaynes of CCTV? Not yet.
Can it double in 2 years if it executes well? Definitely possible.

But until then, don’t forget: “Jo dikhta hai wohi bikta hai” — and this stock is starting to show up.

✍️ Written by Prashant | 📅 June 26, 2025
Tags: Prizor Viztech, SME IPO, Security Cameras, Kaynes Tech, Surveillance, Smallcap Stocks, EduInvesting, Multibagger Watchlist