DATAPATTNS - Fundamental Analysis: Financial Health & Valuation

Last Updated Time : 05 Nov 25, 7:43 am

Fundamental Rating: 4.0

📈 Positive

• 💰 Zero debt (Debt-to-equity: 0.00) ensures financial resilience and low financial risk.
• 📊 Strong return metrics — ROCE at 21.0% and ROE at 15.2% reflect efficient capital deployment.
• 📈 EPS of ₹38.3 supports solid earnings visibility and valuation strength.
• 📈 DII holding increased by 1.71%, indicating rising domestic institutional confidence.
• 📈 MACD at 17.1 and RSI at 46.4 reflect neutral-to-positive technical momentum.

⚠️ Limitation

• 📉 High P/E of 71.6 vs industry average of 67.4 suggests premium valuation.
• 📉 PEG ratio of 2.25 indicates valuation is stretched relative to growth.
• 📉 Quarterly PAT dropped from ₹114 Cr. to ₹25.5 Cr., showing margin pressure.
• 📉 Trading near DMA50 and DMA200 (₹2,721 and ₹2,566), suggesting consolidation phase.

📰 Company Negative News

• 📉 FII holding declined by 1.38%, indicating reduced foreign investor interest.
• 📉 Quarterly profit variation of -22.2% reflects earnings volatility.

🌟 Company Positive News

• 📈 Volume slightly above 1-week average suggests steady investor engagement.
• 📈 52-week performance up 72.6%, showing strong price appreciation and market optimism.

💻 Industry

• 💻 DATAPATTNS operates in the semiconductor and defense electronics space, benefiting from government contracts and strategic demand.
• 📊 Industry P/E of 67.4 reflects high growth expectations and premium valuations for niche technology players.

🧭 Conclusion

• 📌 Suggested entry zone: ₹2,650–₹2,700, near DMA levels for better margin of safety.
• 🕰️ Long-term holding favorable due to strong fundamentals, zero debt, and strategic sector exposure.
• ⚖️ Monitor earnings consistency and foreign investor sentiment before aggressive accumulation.