Data Patterns: Brain behind India’s missile, radar & ISRO tech.

DATAPATTNS

🏢 Company Overview:
Data Patterns is a vertically integrated defense and aerospace electronics solutions provider. It designs, develops, manufactures, and tests advanced electronic systems used in:

Radar, Electronic Warfare
Avionics, Missile Systems
Satcom, Communication & Surveillance

It’s one of the few Indian defense electronics companies with end-to-end capabilities—from design to delivery.

📈 Fundamental Analysis:

✅ Key Financials (FY24-25 Estimates):
Market Cap ₹13,000+ Cr
Revenue (FY24) ₹480–500 Cr
EBITDA Margin ~38%
PAT Margin ~28–30%
ROE / ROCE 25%+ / 30%+
Debt to Equity 0 (Debt-free)
P/E Ratio ~70x (Premium)

🧩 Strengths:

• Strong order book visibility with over ₹900 Cr+ backlog.
  
• In-house R&D and full control over hardware + software.
  
• Supplied systems to ISRO, DRDO, BEL, HAL — proven credibility.
  
• High margin & asset-light business model.
  

⚠️ Risks:

• Heavy dependency on government contracts (lumpy revenue).
  
• High valuations — pricing in future growth.
  
• Competition from global defense OEMs and local PSU giants.
  

📊 Technical Analysis (As of July 2025):

🧾 Price Action Summary:
CMP: ₹2,880 (Example)

52-Week Range: ₹1,650 – ₹2,980

Trend: Strong uptrend since Jan 2025

Support Zone: ₹2,550 – ₹2,650

Resistance: ₹3,000 (psychological and technical resistance)

🔍 Indicators:

• 200 EMA: ₹2,200 (Stock trading well above long-term average)
  
• MACD: Positive with histogram expanding
  
• RSI: 71 – Overbought, watch for pullbacks
  
• Volume: Spikes near breakout levels – confirms strength
  

📉 Short-Term View:
Likely to consolidate near ₹2,800–₹3,000

Fresh breakout above ₹3,000 may lead to ₹3,400–₹3,600 zone

🚀 Future Growth Prospects:
🛰️ 1. Defense Capex Boom:
Indian Government’s “Atmanirbhar Bharat” push & higher defense budget directly benefits defense tech firms like Data Patterns.

🧠 2. R&D & IP-Led Growth:
Owns IP of most products – high operating leverage and export potential.

🌍 3. Export Market Entry:
Partnering with foreign OEMs; growing traction in South-East Asia, Middle East.

🛠️ 4. Order Book Strength:
High-margin orders across radar, avionics, and missile sub-systems.

Client base includes DRDO, BrahMos, BEL, ISRO, HAL – strong pipeline ahead.

📝 Conclusion:
Parameter Verdict
Fundamentals 🔵 Very Strong (Debt-free, high ROCE)
Technicals 🟢 Bullish (Watch ₹3,000 zone)
Valuation 🟡 Expensive but justified by moat
Long-Term View ✅ Positive – IP-driven defense electronics play
Short-Term View 🔄 Wait for breakout or buy on dips near ₹2,600

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⚠️ Disclaimer:
This analysis is for educational and informational purposes only.
We are not SEBI-registered analysts or advisors.
This is our personal view based on available data and market trends.
Please consult your SEBI-registered investment advisor before making any investment or trading decisions.
You are solely responsible for any financial decisions you make based on this content.


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Trade Secrets By Pratik
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