Data Patterns - Research Report

Data Patterns is an A /T+1group, Aerospace & Defense company with having Face value of Rs. 2. Data Patterns is a defence and aerospace electronics solutions provider catering to the indigenously developed defence products industry with experience of more than three decades in the defence and aerospace electronics space. Its product portfolio includes Radars, Underwater electronics/communications/other systems, Electronic warfare suite, BrahMos programme, Avionics, small satellites, ATE for defence and aerospace systems, Commercial off-the-shelf (COTS). The company’s key customers are Bharat Electronics Ltd (BEL), Hindustan Aeronautics Limited (HAL), the Indian Space Research Organization (ISRO) and Defense Research and Development Organization (DRDO).

Fundamentals (FY22-23):

 

CMP	Rs. 1448.00
52 - week high	Rs. 1,540.00
52 – week low	Rs. 608.00
Dividend % (consolidated)	19%
ROCE	33.4%
BVPS	0..8%
Revenue	₹ 439 Cr.
Debt to Equity	0.02
P/E ratio	61.2
EPS (consolidated)	Rs. 25.1
P/B ratio	12.5
Market Cap	Rs. 7,974 cr.
Face value	Rs. 2

 

Financial Results:

Company’s Net Sales was at Rs 111.81 crore in December 2022 up by 155.04%, Quarterly Net Profit at Rs. 33.32 crore in December 2022 up by 271.87% and EBITDA stands at Rs. 48.89 crore in December 2022 up by 200.12% as compared to December 2021.

Key Points:

1. Data Patterns’s issue was subscribed 119.62 times in December 2021 and it made a robust debut in a market by getting listed at a health premium of 47% at ₹856 per share as compared to its IPO issue price of ₹585 per share.
2. Currently, Data Patterns is working with Swedish MNC, SAAB, for joint-development of products related to electronic warfare system, with an eye on the export markets.
3. The company is currently engaged in the supply of critical products to several prestigious defence projects in India, such as the Light Combat Aircraft (LCA), the HAL Dhruv, Light Utility Helicopter (LUH) and the BrahMos missile programme, precision approach radars and various communications intelligence (COMINT) and electronic intelligence (ELINT) systems.
4. Recently the company received a development order of Rs 27 crore from Defence Research and Development Organization for wide band RF front end units for electronic warfare receivers.
5. Recently, Data Patterns India Ltd’s board approves closure of QIP at a determined issue price of ₹ 1,220.31 per Equity Share (including a premium of ₹ 1,218.31 per Equity Share), which is at a discount of 5% (i.e., ₹ 64.22 per Equity Share) on the floor price of ₹ 1,284.53 per Equity Share.
6. Recently, Data Patterns unveiled the 27th BrahMos Missile Checkout Equipment in presence of the BrahMos chief Shri Atul Rane. Indigenous development of the COE by Data Patterns has resulted in a direct cost savings of about 75% in foreign exchange for BrahMos. Checkout Equipment (COE) for "BrahMos Missile" is a VME based three Bay test system used to check the health and functionality of the electrical sub-systems of Brahmos Missile.

In last 1 years the stock gave a return of 90.63% as compared to the rise of Sensex and Nifty in the same period.

The recent year budget provided by the GOI to Defense sector is the second highest amongst other sectors and Data Patterns is well poised to enjoy earnings from long term defense projects undertaken by the government to strengthen the India’s defence system under Make in India and Atma Nirbhar Bharat Campaign. Considering company’s fundamentals, strong order book backed from top defence companies in India  and good financial performance, investors looking for safe investments and healthy returns in upcoming years can add this company in their portfolios for long term period.

 - HET ZAVERI

- info@smartinvestment.in

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