Data Patterns
Stock Snapshot
Price Performance
Vista Outlook
View Technicals Analysis →Basis of our Recommendation
Data Patterns is navigating a pivotal transition from a specialized subsystem supplier to a comprehensive, IP-led defense electronics provider. Management's confidence in achieving 20-25% revenue growth for FY27 is supported by a substantial order pipeline of INR 26.5 billion and a long-term addressable market exceeding INR 400 billion. However, near-term margin pressures due to rising costs and an unfavorable product mix present challenges. The company's strategic focus on proprietary technologies, particularly in electronic warfare and radar, alongside aggressive investments in manufacturing, positions it well for future growth. Despite a stable market share and improving pricing power in the defense sector, the execution risks associated with project-based contracts and potential delays in government approvals remain critical watchpoints. Overall, Vista's financial outlook reflects a cautious stance, with expected revenue growth moderating and margins under pressure, aligning with a fair valuation. The anticipated growth in defense spending and indigenous development initiatives provides a favorable backdrop, yet the stock's premium valuation could limit upside if growth targets are not met
Why We Like This Stock
- Strong order pipeline of INR 26.5 billion supports management's revenue growth guidance of 20-25%
- Strategic investments in proprietary technologies and manufacturing capacity enhance long-term growth prospects
- Improving pricing power in the defense sector aligns with the company's focus on high-value subsystems
Things To Watch Out For
- Near-term margin pressures due to rising costs and unfavorable product mix could impact profitability
- Execution risks related to project-based contracts and potential delays in government approvals may affect revenue timing
- The stock's premium valuation could limit upside if growth expectations are not met
Key Parameters
Financial Snapshot
| Actuals | Forecast | ||||
|---|---|---|---|---|---|
| FY24 | FY25 | FY26 | FY27 | FY28 | |
| Revenue (Cr.) | 520 | 708 | 925 | 939 | 1,314 |
| Profit Before Tax (Cr.) | 237 | 286 | 367 | 317 | 485 |
| PBT Margin | 45.5% | 40.4% | 3967.6% | 33.8% | 36.9% |
| Net Profit (Cr.) | 181 | 236 | 273 | 238 | 364 |
| Earnings Per Share | 32.3 | 42.2 | 48.8 | 42.5 | 64.9 |
Analyst Recommendations
| Broker | Recommendation | Target Price | Date |
|---|---|---|---|
| Choice Equity | ► Hold | 4,060 | 03-Jun-2026 |
| Goldman Sachs | ► Neutral | 4,165 | 07-Aug-2026 |
| HDFC Securities | ► Add | 3,940 | 18-May-2026 |
| Jeffries | ▲ Buy | 5,545 | 03-Aug-2026 |
| Moneycontrol | ► Equalweight | nan | 03-Aug-2026 |
| Motilal Oswal | ► Neutral | 4,000 | 31-Jul-2026 |
Company Overview
Show Company Profile
Data Patterns (India) Limited provides defense and aerospace electronics solutions in India. The company engages in the manufacturing of measuring, testing, navigating, and control equipment; and air and spacecraft and related machinery, as well as provides technical testing and analysisIt also offers COTS boards, ATE and test systems, RF and microwave products, electronic warfare products, cockpit and rugged displays, radar and radar subsystems, identify friend and Foe products, avionic systems, laser and electro optic systems, space systems, power supply products, naval systems, communication products, gimbal and actuator controller products, launch and fire control systems, high-speed processors, digital IF processors and waveform generators, consoles, and navigation systems; and software and application products. In addition, the company provides hardware design, product development, ATE/functional test equipment, FPGA, software, microwave, mechanical product design, manufacturing, and environmental qualification testing services. Data Patterns (India) Limited was incorporated in 1998 and is based in Chennai, India.