DATAPATTNS - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 4.3
| Stock Code | DATAPATTNS | Market Cap | 22,851 Cr. | Current Price | 4,082 ₹ | High / Low | 4,295 ₹ |
| Stock P/E | 91.6 | Book Value | 275 ₹ | Dividend Yield | 0.19 % | ROCE | 21.0 % |
| ROE | 15.2 % | Face Value | 2.00 ₹ | DMA 50 | 3,369 ₹ | DMA 200 | 2,913 ₹ |
| Chg in FII Hold | 0.93 % | Chg in DII Hold | 1.41 % | PAT Qtr | 60.6 Cr. | PAT Prev Qtr | 49.2 Cr. |
| RSI | 70.5 | MACD | 244 | Volume | 11,19,270 | Avg Vol 1Wk | 15,35,420 |
| Low price | 2,121 ₹ | High price | 4,295 ₹ | PEG Ratio | 2.88 | Debt to equity | 0.00 |
| 52w Index | 90.2 % | Qtr Profit Var | 35.8 % | EPS | 44.1 ₹ | Industry PE | 66.6 |
📊 Data Patterns (DATAPATTNS) demonstrates strong fundamentals with ROE (15.2%) and ROCE (21.0%), supported by a debt-free balance sheet. EPS of ₹44.1 reflects earnings strength, and quarterly PAT growth (60.6 Cr vs 49.2 Cr, +35.8%) highlights operational improvement. Dividend yield of 0.19% is modest but adds shareholder value. Valuation is stretched with P/E (91.6) compared to industry average (66.6), and PEG ratio (2.88) suggests limited growth-adjusted comfort. Technicals show overbought momentum with RSI (70.5) and strong MACD (244), supported by high volumes, indicating bullish sentiment.
🎯 Entry Zone: 3,950 ₹ – 4,050 ₹ (near support levels)
📌 Long-Term Holding: Suitable for accumulation with a 2–3 year horizon. Strong fundamentals justify holding, though valuations warrant cautious exposure. Upside potential exists toward 4,300–4,400 ₹, with partial profit booking advisable on overbought signals.
Positive
- Strong ROE (15.2%) and ROCE (21.0%) highlight efficiency.
- Debt-free balance sheet ensures financial resilience.
- Quarterly PAT growth (+35.8%) supports earnings momentum.
- FII (+0.93%) and DII (+1.41%) inflows reflect institutional confidence.
- Technical indicators (RSI, MACD) show bullish momentum.
Limitation
- High P/E (91.6) compared to industry average (66.6).
- PEG ratio (2.88) indicates limited growth-adjusted value.
- Dividend yield (0.19%) is negligible.
- Overbought RSI (70.5) suggests near-term correction risk.
Company Negative News
- No major negative news reported; valuation and overbought technicals remain concerns.
Company Positive News
- Strong quarterly PAT growth (+35.8%).
- Debt-free balance sheet supports long-term stability.
- Institutional inflows highlight investor confidence.
Industry
- Industry P/E (66.6) is lower than DATAPATTNS’s P/E (91.6), showing premium valuation.
- Defence and aerospace sector remains resilient, supported by government spending and long-term contracts.
Conclusion
⚡ Data Patterns is fundamentally strong with efficient capital use and zero debt. Entry around 3,950–4,050 ₹ offers favorable risk-reward. Long-term holding is justified with cautious accumulation, though valuations and overbought technicals warrant discipline. Partial profit booking near 4,300–4,400 ₹ is advisable, with exit below 3,850 ₹ on heavy volume.
This structured HTML report captures Data Patterns’ strong fundamentals alongside its valuation risks and overbought technicals. If you’d like, I can extend this into a peer benchmarking overlay against other defence and aerospace players like BEL or HAL to highlight relative positioning. Would you like me to prepare that next?