This multibagger stock with 116% rally has a BrahMos Missile connection

Multibagger stock: Shares of Data Patterns India have gained 116% from their 52-week low in nearly three months led by a rally in defence stocks. The multibagger stock slipped to a 52 week low of Rs 1350.50 on March 3 this year. In the current session, the stock hit a high of Rs 2920, indicating 116% returns during the period. 

The shares have delivered multibagger returns of 279% in three years and gained 72.45 in two years. 

Data Patterns shares are trading higher than their 5 day, 10 day, 20 day, 30 day, 50 day, 100 day, 150 day and 200 day moving averages, which indicates its bullish movement in terms of price action in both short and the long term.

In the current session, Data Patterns stock rose to Rs 2920 against the previous close of Rs 2861.70 on BSE. Market cap of the firm climbed to Rs 16,049 crore. 

The stock has a one-year beta of 1.1, indicating high volatility during the period.

In terms of technicals, the relative strength index (RSI) of Data Patterns stands at 69.5, signaling neither the stock is overbought nor oversold. 

Brokerage Nuvama has a buy call on the stock with a price target of Rs 3700. The target is well past the record high of Rs 3654.75 reached on July 5, 2024. The brokerage said the management is optimistic about achieving a revenue growth of 25–30%, alongside an operating profit margin of 35–40% and a bottom-line growth of 20% in FY26. 

With a solid pipeline projected at Rs 20–30 billion over the next 18–24 months, the company anticipates inflows exceeding Rs 10 billion in FY26. Additionally, they plan to invest Rs 1.5 billion in infrastructure and capacity expansion over the next two to three years, it added.  

In its FY26 guidance, the company said it sees revenue growth Of 20-25% against 36.3% growth in FY25.

EBITDA margins are likely between 35-40% in FY26 against 38.8% in FY25.
The company has a strong order book in pipeline at Rs 2000-3000 crore over the next 18-24 months ( FY25 order book stood at at Rs 729 crore.

Brokerage Nirmal Bang has a price target of Rs 3,401 . 
The company is planning an additional capex of Rs 1.5 bn over the next two years.It also aims to maintain its debt-free status.

"Revenue, EBITDA, and PAT Growth during FY25EFY27E posted CAGR of 22%, 23%, and 17%, respectively. The stock has rallied by 48% in 1 month and is trading at a 1-year forward P/E of 60.4x, which is above its 3-year average of 52x. We maintain a BUY rating on DATAPATT and value it at 62.5x Mar-27E EPS, implying an upside of 21.4% at a target price of Rs 3,401," said Nirmal Bang 

As of March 31, 2025, the company boasts a robust liquidity position, holding over ?4.53 billion in cash and cash equivalents. Throughout the year, Data Patterns achieved significant success with substantial RADAR and EW orders from the Ministry of Defence and various Public Sector Undertakings. Additionally, the company successfully developed and delivered transportable precision approach radars.

The defence firm also has a connection to the BrahMos Missile, which was recently used by Indian armed forces to attack Pakistan's airbases.

Data Patterns created the BrahMos Missile Checkout Equipment with input and support from DRDO and BrahMos. This unit thoroughly assesses the missile's performance by interfacing with its umbilical and maintenance connections. 

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.