
Shares of Data Patterns are in focus on Tuesday after global brokerage Jefferies assigned a buy call to the multibagger stock post Q4 earnings. The brokerage raised its target price to Rs 4,135, mentioning that earnings before interest, taxes, depreciation, and amortization (EBITDA) in the fourth quarter were broadly in-line as higher margins offset lower revenue growth. It has a strong revenue growth outlook of 25% for 2-3 years, with margins being maintained at around 40% (FY24 42.6% against 37.9% YoY).
The defence firm announced its earnings for Q4 and FY24 on May 18 after market hours. Net profit climbed 40% in Q4 to a record Rs 71 cr as against Rs 51 cr in Q3 FY24. Total revenue rose 29% to Rs 195 crore in Q4 from Rs 151 cr in Q3.
EBITDA rose 55% to Rs 93 crore in Q4 FY24 -highest in a quarter-as against Rs 60 cr in Q3 FY24. Profit before tax for Q4 FY24 rose 45% to Rs 95 cr as against Rs 66 Cr in Q3 FY24.
On an annual basis, revenue climbed 22% to Rs 566 crore in FY24 from Rs 463 Cr in FY 2022-23. EBITDA climbed 29% to Rs 222 Cr in FY24 against Rs 172 Cr in FY23. Profit after tax in FY24 surged 47% to Rs. 182 Cr against Rs. 124 Cr in FY 23. PAT margin for FY2024 was 35% against 27% in FY2023.
The defence stock closed 4.14% higher at Rs 3320.35 on May 19 against the previous close of Rs 3188.50 on BSE. In the same session, the Data Patterns stock rose to a record high of Rs 3347.90. The stock has risen 107% in a year and zoomed 350% in two years.
Market cap of the firm climbed to Rs 18,588 crore in the previous session. The defence firm recommended a final dividend of Rs 6.50/- (Rupees Six and Fifty Paisa Only) per equity share (@ 325% per equity share of Rs.2/- each) for the financial year 2023-24.
In terms of technicals, the relative strength index (RSI) of Data Patterns stock stands at 68.6, signaling the stock is trading neither in the oversold nor in the overbought zone. Data Patterns shares stand higher than the 5 day, 20 day, 50 day, 100 day and 200 day moving averages.
The defence stock has a one-year beta of 0.8, indicating low volatility during the period.
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.