This government-dependent defence stock zoomed 7% in a day

This government-dependent defence stock zoomed 7% in a day

Indian Market
by 5paisa Research Team Last Updated: 2022-09-14T16:14:26+05:30

Since its initial public offering in December 2021, the stock has increased by 54%. 

Data Patterns is a vertically integrated provider of defence and aerospace electronics solutions to the indigenously manufactured defence products industry. The company has proven in-house design and development capabilities as well as over three decades of experience in the defence and aerospace electronics field. 

Today, the stock opened at Rs 1065.70 and reached a high of Rs 1170, increasing by 7% and has a 52-week high and low are Rs 1220 and Rs 575, respectively. The company's current market capitalization is Rs 6003.54 crore. On September 9, the stock was trading at a 52-week high of Rs 1220. The promoters own around 45.62% of the corporation, with the remainder held by the general public. Since its first public offering in December 2021, the stock has increased by 54%. 

Data Patterns serve the complete range of defence and aerospace systems, including space, air, land, and sea. It can design processors, power, radio frequency and microwave equipment, embedded software and firmware, and mechanical engineering throughout the complete gamut of strategic aerospace and defence electronics solutions. 

In FY21, the company's sales increased by 43%, making it one of the fastest growing among significant Indian defence and aerospace industries. The company is currently supplying critical products to several prestigious Indian defence projects, including the Light Combat Aircraft (LCA), the HAL Dhruv, the Light Utility Helicopter (LUH), and the BrahMos missile programme, as well as precision approach radars and various communications intelligence (COMINT) and electronic intelligence (ELINT) systems. 

Contracts with GoI entities account for a sizable share (45-50%) of Data Patterns' total sales. The topline increased by 84% year on year to Rs 68 crore, resulting in a 38% year-on-year increase in net profit. The company's operating profit margin is 31.1%, and its net profit margin is 20.9% in FY22. As of March 2022, the company has Rs 17 crore in capital work under process. Other assets expanded dramatically from Rs 295 crore in FY21 to Rs 642 crore in March 2022. The company's ROE and ROCE are 24% and 33%, respectively. The stock currently has a P/E multiple of 60x. 

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