Shares of Data Patterns (India) Ltd have surged over 56% from their 52-week low in less than a year. The multibagger defence stock, which fell to a 52-week low of Rs 1,735.10 on October 26, 2023 was trading at Rs 2,705 level in the afternoon session on Wednesday. Data Patterns stock has gained 133% in two years and risen 47% this year. However, in the current session, Data Patterns stock was trading in the red in the afternoon session.
At the current level, Data Patterns shares have slipped 26% from the 52 week high of Rs 3,54.75 hit on July 5, 2024. The firm logged a turnover of Rs 1.89 crore on BSE. Earlier, Data Patterns stock opened lower at Rs 2725.10 against the previous close of Rs 2736.30. Market cap of the firm slipped to Rs 15,140 crore.
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 36.8, signaling neither the stock is overbought nor oversold on charts.
Data Patterns stock is trading lower than the 5 day, 10 day, 20-day, 30 day, 50 day, 100 day, 150 day but higher than the 200-day moving averages.
Brokerage Nirmal Bang has assigned an accumulate call to the stock with a price target of Rs 3181 on BSE.
Nirmal Bang said Data Patterns has delivered COMINT & ELINT systems and self-protection suits for land, mobile and fighter reconnaissance aircraft & aerostats, which have huge potential. The company expects orders for these platforms in the coming years.
"During FY24E-FY26E, we expect revenue/EBITDA/PAT CAGR of 24%/23%/23%. The stock is currently trading at 58.6x on FY26E EPS. We have maintained accumulate with a target price of Rs 3,181, valuing it at 62x June’26E EPS (+1SD above the long-term average," added Nirmal Bang.
Brokerage Motilal Oswal has a neutral call on the defence stock. It has assigned a price target of Rs 2,900.
"Data Pattern was an exceptional player in terms of margin as it witnessed margin expansion (EBITDA margin up 475bp/470bp YoY to 43%/35.7% in FY24/1QFY25). The company’s high margin can be attributed to the nature of the business, where majority of the product/systems/components are developed in-house with a building block model," said Motilal Oswal. 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.