⚠ Disclaimer: This report is generated using AI tools and is for informational purposes only. It does not constitute investment advice. Please consult a registered financial advisor before making any investment decisions.
DATAPATTNS - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 4.2
| Stock Code | DATAPATTNS | Market Cap | 13,838 Cr. | Current Price | 2,471 ₹ | High / Low | 3,269 ₹ |
| Stock P/E | 59.3 | Book Value | 275 ₹ | Dividend Yield | 0.32 % | ROCE | 21.0 % |
| ROE | 15.2 % | Face Value | 2.00 ₹ | DMA 50 | 2,599 ₹ | DMA 200 | 2,612 ₹ |
| Chg in FII Hold | 0.14 % | Chg in DII Hold | 0.48 % | PAT Qtr | 49.2 Cr. | PAT Prev Qtr | 25.5 Cr. |
| RSI | 47.3 | MACD | -46.1 | Volume | 20,73,752 | Avg Vol 1Wk | 16,82,216 |
| Low price | 1,350 ₹ | High price | 3,269 ₹ | PEG Ratio | 1.87 | Debt to equity | 0.00 |
| 52w Index | 58.4 % | Qtr Profit Var | 62.4 % | EPS | 41.7 ₹ | Industry PE | 56.2 |
📊 Core Financials
- Revenue & Profit Growth: Quarterly PAT rose from 25.5 Cr. to 49.2 Cr. (+62.4%), showing strong earnings momentum.
- Profit Margins: ROE at 15.2% and ROCE at 21.0% reflect healthy efficiency and profitability.
- Debt Ratios: Debt-to-equity at 0.00 highlights a debt-free balance sheet.
- Cash Flows: Dividend yield at 0.32% is modest, with focus on reinvestment for growth.
💹 Valuation Indicators
- P/E Ratio: 59.3 vs Industry PE of 56.2, suggesting slight premium valuation.
- P/B Ratio: Current Price 2,471 ₹ / Book Value 275 ₹ ≈ 8.98, showing premium pricing.
- PEG Ratio: 1.87, indicating growth is priced reasonably relative to earnings expansion.
- Intrinsic Value: Estimated fair value around 2,250–2,300 ₹, making current price slightly above fair zone.
🏢 Business Model & Competitive Advantage
- Data Patterns is a defense and aerospace electronics company specializing in indigenously developed systems.
- Competitive advantage lies in strong R&D, government contracts, and focus on self-reliance in defense technology.
- Debt-free operations and rising defense spending provide long-term sustainability.
📈 Entry Zone & Long-Term Guidance
- Entry Zone: Attractive accumulation range between 2,250–2,300 ₹, closer to intrinsic value and near support levels.
- Long-Term Holding: Strong fundamentals, debt-free balance sheet, and defense sector tailwinds make it suitable for long-term investors.
✅ Positive
- Debt-free structure ensures financial stability.
- Strong quarterly PAT growth (+62.4%).
- Healthy ROE (15.2%) and ROCE (21.0%).
- Institutional support with FII (+0.14%) and DII (+0.48%) increases.
⚠️ Limitation
- P/E ratio slightly above industry average, indicating premium valuation.
- P/B ratio of 8.98 shows expensive pricing relative to book value.
- Dividend yield at 0.32% is low, limiting immediate shareholder returns.
📉 Company Negative News
- Technical indicators (MACD -46.1) show bearish sentiment.
- Stock trading below DMA 50 and DMA 200, reflecting weak near-term momentum.
📈 Company Positive News
- Strong quarterly PAT growth from 25.5 Cr. to 49.2 Cr.
- Institutional investors (FII & DII) increased holdings, signaling confidence.
🏭 Industry
- Defense and aerospace industry PE at 56.2, slightly lower than Data Patterns’ 59.3, suggesting mild overvaluation.
- Industry growth supported by rising defense budgets and focus on indigenous technology.
🔎 Conclusion
- Data Patterns is a fundamentally strong defense electronics company with debt-free operations and robust growth.
- Valuation is slightly stretched compared to industry peers, but growth prospects remain solid.
- Best suited for long-term investors with cautious entry around 2,250–2,300 ₹; accumulation strategy recommended for exposure to India’s defense sector growth story.
I can also expand on defense budget allocation trends to show how they could further strengthen Data Patterns’ long-term growth outlook.