Multibagger stock: Shares of Data Patterns India (Ltd) have lost steam in the last six months. The multibagger stock has fallen 30% in six months, 9% in a month and 5% in two weeks. The shares have delivered multibagger returns of 104% in two years and gained 219% in three years. Data Patterns stock is trading lower than its 5 day, 10 day, 20 day, 30 day, 50 day, 100 day, 150 day and 200 day moving averages, which indicates its bearish movement in terms of price action in both short and the long term.
In the current session, Data Patterns stock rose 5.58% to Rs 2474.95 against the previous close of Rs 2343.95 on BSE. Market cap of the firm climbed to Rs 13,203.
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 39.4, signaling neither the stock is overbought nor oversold.
Brokerage JM Financial has a buy call on the stock with a target price of Rs 2860.
"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.
Brokerage Nirmal Bang has a buy call on the stock with a target price of Rs 2,997.
Nirmal Bang has a bullish stance on the company due to its strong in-house R&D capabilities and deep domain knowledge in radars, electronic warfare etc. The order book is projected to rise at a CAGR of 19% between FY25E and FY27E.
Efficient execution will drive operating leverage said the brokerage adding that the company remains confident in maintaining operating margins within the 35-40% range over the next 2-3 years.
PhillipCapital said Data Patterns stands out as a vertically integrated player in the defence and aerospace electronics space, leveraging its in-house design and development expertise. The brokerage has initiated coverage on the stock with a 'Buy' rating and a target price of Rs 3,400.
Data Patterns is a top pick of domestic brokerage Nuvama.
The defence and aerospace firm 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.