At a glance

Prizor Viztech Ltd has grown like wildfire: sales up 8x in 3 years, profits up 5x, and ROCE hitting 45%+. It now owns a factory that can roll out 50 lakh CCTV units a year, with plans to dominate security tech in India. But here’s the catch — operating cash flow is -₹14 Cr, FIIs are ghosting the stock, and EPS crashed from ₹69 to ₹9 due to equity dilution. Is this a future multibagger or just surveillance smoke and no fire?

1. 🎯 About the Company

• Incorporated: 2017
• HQ: Gujarat
• Focus: Video surveillance, security cameras, TV monitoring equipment
• Also sells: Interactive education panels
• Certifications: ISO 9001:2008, ISO 14001:2015, ISO 27001:2013

What’s unique?

They’re not just re-selling Chinese cameras anymore. In May 2025, they inaugurated a 50 lakh unit capacity in-house manufacturing unit — one of the largest in the SME security space.

Think of it as India’s Bajaj Chetak moment for CCTV — switching from assembler to full-stack maker.

2. 🧑‍💼 Key Managerial Personnel (KMP)

• Mr. Sureshbhai Patel (MD & Promoter) – Holds 68.28%
• Internal auditor for FY26: M/s. Ankit Gadiya & Associates
• Rapid changes in management reported recently (May 2025)

They are pushing fast — factory inauguration, internal audit revamp, investor meets — but are they scaling responsibly?

3. 📊 Financial Snapshot (FY22–FY25)

📈 Revenue Growth

Revenue CAGR (3 Years): 102%

💸 Net Profit

Profit CAGR (3 Years): 533%

That’s mind-bending — but…

Cash flow from operations in FY25 = -₹14 Cr
Translation: profit on paper, cash stuck in working capital.

🧮 Key Metrics (FY25)

4. 💰 Forward-Looking Fair Value (FV Estimate)

Let’s assume:

• FY26E PAT = ₹14 Cr (assuming moderate 40% YoY growth)
• Forward P/E range = 15x to 20x (SME hardware with India infra tailwinds)
• Fair Market Cap = ₹210 Cr to ₹280 Cr
• Outstanding shares ≈ 1.05 Cr
• Fair Value Range = ₹200 – ₹265/share

➡️ CMP = ₹189 → Upside: Mild to Moderate if margins hold up and cash flow stabilizes.

5. 🚀 Growth Drivers

• ‘Make in India’ CCTV demand boom: govt, infra, and schools going local
• Capacity built up before demand = operating leverage will kick in if volume scales
• R&D focus: company claims IP development, which is rare for SME hardware firms
• School EdTech angle via interactive boards — a surprise vertical if executed well

6. 😈 Risks & Red Flags

• EPS crash from ₹69 to ₹9.49 due to equity dilution (11x increase in equity capital)
• FIIs holding dropped from 3.3% to 1.4% in last 2 quarters
• Zero dividends ever
• Cash burn in FY25 despite profit — negative OCF (-₹14 Cr), high debtor days
• Cash conversion cycle is 262 days — extremely high for electronics retail
• Promoter group dilution risk if expansion requires more funding

7. 🧠 EduInvesting Take

On paper, this is a dream:
✔️ 100% sales growth
✔️ PAT growing 5x
✔️ Factory built
✔️ ROE/ROCE > 40%

But in reality:

• Cash flow is bleeding
• Working capital is bloated
• EPS deflated post-IPO
• FIIs are walking away quietly

This is not a pump & dump — they’ve built a real factory, have real revenues, and their investor presentation looks semi-legit.

But it needs to prove that its new capacity converts to cash, not just accounting profits.

TL;DR

Prizor Viztech Ltd is a surveillance stock watching everything — except its own cash flow.
If they turn the ₹50 lakh unit capacity into orders and normalize their working capital, this could become the “Havells of Cameras” for mid-sized projects.

But until that happens, the stock trades more on hope than fundamentals.

Author: Prashant Marathe
Date: 13 June 2025
Tags: Prizor Viztech, SME IPO, CCTV stocks India, Surveillance Tech, Security Hardware, EduInvesting