Shares of Data Patterns India recovered a majority of losses in Tuesday’s trading session a day after they fell 10% intra day on Q2 earnings. Data Patterns stock rose 7.64% today to Rs 2350.2 against the previous close of Rs 2183.05 on BSE. Market cap of the firm climbed to Rs 12,509 crore. Data Patterns shares have gained 17.14% in a year and risen 21.34% since the beginning of this year.
Data Patterns shares have gained 20% in a year and risen 19.39% since the beginning of this year.
The stock has a one-year beta of 1, indicating average volatility during the period.
In terms of technicals, the relative strength index (RSI) of Data Patterns stands at 38, signaling neither the stock is overbought nor oversold. Data Patterns stock is trading lower than the 5 day, 10 day, 20-day, 100-day and 200-day moving averages.
Post Q2 earnings, brokerage JM Financial gave a buy call to the stock with a target price of Rs 2860, a 31% upside to the previous close.
“We remain positive on stock in long run due to inhouse design capabilities, strong order backlog & pipeline, sustained EBITDA margins and focus on product development to increase TAM. However, factoring in continued delay in execution, order inflows and slower pickup in EBITDA margin expansion due to higher contribution of development contracts, we have lowered our EPS estimates by 6.1%/7.9%/11.5% for FY25/26/27E. However, due to steep correction in stock price in last four months we maintain BUY with target price of Rs 2,860 valuing it at 50xSep’26E (57x Sep’26 earlier), factoring in continued lower inflows and delayed execution, said JM Financial.
Key risk to the brokerage’s assumption are slowdown in government spending on defence, weak order inflows and delay in new product pickup.
Data Patterns reported a profit of Rs 30.28 crore for the July-September 2024 quarter against a profit after tax of Rs 33.79 crore in the corresponding quarter of the previous financial year. Revenue in Q2 fell 16% to Rs 91 crore against Rs 108.3 crore in the same quarter of the previous financial year.
For the half-year ended September 30, 2024, profit after tax came at Rs 63.07 crore against Rs 59.62 crore in the same period last year.
Data Patterns (India) Limited is an India-based vertically integrated defence and aerospace electronics solutions provider catering to the indigenously developed defense products industry. Its portfolio includes COTS Boards, ATE and Test systems, Space Systems, and Radio Frequency and Microwave. It designs COTS module products that are used in rugged applications and automatic test equipment platforms.
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