Multibagger stock: Data Patterns shares zoom 12% to hit 52-week high; technical analysts suggest more upside

Shares of Data Patterns (India) Ltd rose sharply in Monday's trade to hit their fresh one-year high price. The stock jumped 11.93 per cent to hit a fresh 52-week high of Rs 2,412.85 over its previous close of Rs 2,155.75. The multibagger stock has surged nearly 112 per cent on a year-to-date (YTD) basis and 183 per cent in the past one year.

In a recent earnings call, S Rangarajan, chairman and managing director at Data Patterns, said, the company has raised around Rs 500 crore for product development in areas such as radar, electronic warfare, and satellite technologies via its QIP (Qualified Institutional Placement).

"This strategic focus on innovation positions has substantial revenue expansion across domestic and international markets in the coming years. Our order book during Q1 FY24 (June 2023 quarter) demonstrated remarkable growth of 113 per cent year-on-year, reaching 96.71 crore the order inflow sold to Rs 132 crore representing noteworthy 2.9x year on year increase. In Q1 FY24, we secured several significant orders, about 357 million for radars and electronic warfare about 362 million from DRDO," he stated.

When asked about an update on BrahMos, the company management said, "BrahMos seeker is about to get flight tested anytime. We are not very sure exactly in the next few weeks. It is still in that stage. The BrahMos flight testing is over, we will be able to announce this. But it is the program is on, it is current and they are expecting to do a flight test very soon."

Technical analysts largely remained 'positive' on the counter, suggesting further upside.

Osho Krishan, Senior Analyst, Technical & Derivative Research at Angel One, said, "Data Patterns have seen a significant move of over 2x in the current calendar year. The counter is in the cycle of 'higher highs - higher lows', adding a bullish quotient. Support lies around Rs 2,100 zone, followed by sacrosanct support at Rs 2,000 mark. Sustainability above the same would direct bullish biases to continue in the comparable period."

Vaishali Parekh, Vice-President - Technical Research at Prabhudas Lilladher, said, "The stock is in a strong trending mode and witnessed a breakout to improve the bias. Expect a further rise in the coming days for next targets of Rs 2,480-2,500. The near-term support would be maintained at around Rs 2,170-2,150 levels."

With the relative strength index (RSI) indicator well placed, there is a further upside scope for the stock to rally, she added.

AR Ramachandran from Tips2trades said, "Data Patterns is looking bullish on the daily charts with next resistance at Rs 2,444. A daily close above this resistance could lead to target of Rs 2,600 in the near term. Support will be at Rs 2,172."

Meanwhile, Indian equity benchmarks were up today, led by gains in technology, financial metal, pharma and consumer stocks.

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