DATAPATTNS - Fundamental Analysis

Last Updated Time : 02 Aug 25, 12:58 am

Fundamental Rating: 3.9

Here’s a full-spectrum analysis of Data Patterns (DATAPATTNS)—a tech-savvy defense stock with strong fundamentals but demanding valuation 📡📊

🧾 Core Financials Review

Profit Surge

PAT jumped from ₹44.7 Cr. to ₹114 Cr. in one quarter, reflecting a 60.4% improvement — very impressive growth acceleration.

EPS of ₹39.6 gives credibility to bottom-line performance at current valuation levels.

Return Metrics

ROCE: 21.0% and ROE: 15.2% — solid, suggesting capital is being efficiently deployed.

Margins appear healthy, and asset-light operations aid these ratios.

Leverage & Liquidity

Debt to Equity: 0.00 — completely debt-free, which is a major plus for financial stability.

While cash flow specifics aren't listed, strong PAT and zero debt imply reliable internal cash generation.

📉 Valuation Snapshot

Metric Value Interpretation

P/E Ratio 66.4 Fair for industry norms but still steep

P/B Ratio ~9.48 Price trades at nearly 9.5x book value

PEG Ratio 2.09 Indicates valuation is stretched despite growth

Dividend Yield 0.31% Nominal — not a dividend-driven play

Intrinsic Value ~₹2,100–₹2,300 Current price of ₹2,550 looks slightly high

Despite earnings momentum, valuation is running ahead of intrinsic strength.

🧬 Business Model & Competitive Advantage

Operates in defense electronics, supplying high-tech systems with applications across aerospace, naval, and ground platforms.

Indigenous development capabilities and strong IP offer a niche moat, especially in defense contracting.

Government spending on Make in India and indigenous defense enhances the firm's tailwinds.

📈 Technical Indicators & Entry Zone

RSI: 34.1 — approaching oversold zone, which may signal consolidation or a potential rebound.

MACD: Deeply negative, confirming current bearish sentiment.

Price has dipped below DMA 50 and hovers near DMA 200, suggesting technical pressure.

🎯 Recommended Entry Range

Medium-risk entry: ₹2,250–₹2,400

Value entry: ₹2,100–₹2,250 — closer to intrinsic zone

🕰️ Long-Term Holding Strategy

✅ High-quality, debt-free business with strong industry positioning

⚠️ Rich valuation demands buy-on-dips strategy, not chasing price

🟢 Ideal for patient investors targeting 5–7 year holding periods

Let me know if you want to build a comparative matrix with Paras Defence, MTAR Tech, or other niche defense-tech players. It could help sharpen your sector view 🔍📐

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