DATAPATTNS - Fundamental Analysis: Financial Health & Valuation

Last Updated Time : 20 Dec 25, 11:15 pm

Fundamental Rating: 3.9

📊 Core Financials

• Revenue & Profitability: PAT rose to 49.2 Cr. from 25.5 Cr., showing strong sequential growth (+62.4%).
• Margins: ROE at 15.2% and ROCE at 21.0% indicate healthy efficiency and profitability.
• Debt Ratios: Debt-to-equity at 0.00 — debt-free balance sheet ensures financial resilience.
• Cash Flows: Dividend yield of 0.31% is minimal, suggesting reinvestment focus over payouts.

💹 Valuation Indicators

• P/E Ratio: 61.3 vs Industry PE of 57.9 — slightly overvalued compared to peers.
• P/B Ratio: Current Price 2,555 ₹ / Book Value 275 ₹ ≈ 9.3, premium valuation.
• PEG Ratio: 1.93 — reasonable growth-adjusted valuation, supportive of premium pricing.
• Intrinsic Value: Strong fundamentals justify growth potential, though current price is stretched.

🏢 Business Model & Competitive Advantage

• Operates in defense and aerospace electronics, with strong focus on indigenous technology solutions.
• Competitive advantage lies in niche expertise, government contracts, and debt-free structure.
• DII holdings increased (+1.71%), showing domestic institutional confidence, though FII reduced (-1.38%).

📈 Technical & Entry Zone

• DMA 50: 2,755 ₹ | DMA 200: 2,633 ₹ — stock trading below short-term average, indicating weakness.
• RSI: 34.1 — oversold territory, potential rebound zone.
• MACD: -93.0 — bearish momentum persists.
• Entry Zone: Attractive near 2,200–2,350 ₹ for accumulation.
• Long-Term Holding: Strong candidate for long-term portfolio given debt-free status and growth outlook.

✅ Positive

• Strong quarterly PAT growth (+62.4%).
• Healthy ROE (15.2%) and ROCE (21.0%).
• Debt-free balance sheet ensures financial stability.
• DII holdings increased (+1.71%), reflecting domestic institutional support.

⚠️ Limitation

• High P/E ratio (61.3) compared to industry average.
• P/B ratio of 9.3 indicates premium valuation.
• Dividend yield of 0.31% offers limited shareholder returns.

📉 Company Negative News

• FII holdings reduced (-1.38%), showing weaker foreign investor sentiment.
• Stock trading below DMA 50, reflecting short-term weakness.

📈 Company Positive News

• Quarterly PAT growth from 25.5 Cr. to 49.2 Cr. shows strong operational performance.
• DII holdings increased (+1.71%), reflecting strong domestic institutional confidence.

🏭 Industry

• Industry PE at 57.9 — sector trades at premium valuations.
• Defense and aerospace electronics industry benefits from government spending and strategic importance.

🔎 Conclusion

DATAPATTNS is a fundamentally strong company with robust profitability, debt-free balance sheet, and strong growth outlook. Valuations are stretched, but PEG ratio supports growth potential. Entry is attractive near 2,200–2,350 ₹, and it remains a solid long-term holding given its niche expertise and industry tailwinds.