This defence stock rose 42% in six months, here's what brokerages say  

Shares of Data Patterns India (Ltd) have gained 42% in six months indicating a recovery for the defence stock in the medium term. However, the multibagger has fallen 12% in a month, capping gains for the stock. With a midrange RSI of 33, the defence stock is trading near the oversold zone. It has seen high volatility with a beta of 1.2 in a year. 

Data Patterns stock trades lower than the 5 day, 10 day, 20 day, 30 day, 50 day, 100 day but higher than the 150 day and 200 day moving averages, which indicates mostly bearish sentiment around the stock. 

The defence stock hit a high of Rs 2582.70, rising 6.39% in early trade today. In the current session, market cap of Data Patterns rose to Rs 14,023 crore. 

The Chennai-headquartered defence and aerospace electronics systems provider reported profit after tax (PAT) of Rs 26 crore in Q1, a 22 per cent fall from the Rs 33 crore it posted in the corresponding quarter last year. Revenue from operations in Q1 FY26 slipped 5 per cent to Rs 99 crore (Rs 104 crore).

Nuvama Institutional Equities has an unchanged price target of Rs 3,700. 

The brokerage said Data Patterns (DPIL) missed Street’s revenue/EBITDA estimate by 25%/33% primarily led by muted execution due to customer approval delays (shall normalise in coming quarters). 

"Order inflows came in at Rs 1.8 bn (growing 5x YoY), whereas YTD FY26 OI was Rs 3.2 bn versus Rs 3.5 bn in full year FY25, inching up backlog to Rs 8.1 bn (1.1x FY25 sales). The management reiterated FY26 guidance of OI at INR10bn-plus, revenue growth of 25–30% and OPM at 35–40%."

The brokerage maintained  a BUY call on its top sector pick given we are building in a 25% EPS CAGR over FY25–28E on the back of ongoing modernisation drive that shall power defence electronics theme, in our view. 

Choice Institutional Equities sees a 28% upside in the defence stock in a year. It has assigned a price target of Rs 3,100 on the stock. 

"We believe Data Patterns strong strategic investment continues to set the company on a promising trajectory. Q1 saw revenue dip due to unavoidable customer acceptance delays, but margin remained resilient. Q1 is facing hiccups, which are generally followed by aggressive R&D ramp-up cycles – not a fundamental weakness. The company holds a robust order book of Rs 1,079 Cr. Data Patterns also has a strong order pipeline, comprising Rs 2,000–3,000 Cr contracts over the next 18–24 months, primarily in airborne radars, EW systems, seekers and upgrade programs," said Choice. 

The company has invested Rs 120 Cr in new products, which materially improves its TAM & makes it a substitute to import.

"We have introduced FY28 estimates and, based on the average FY27/28E EPS, we upgrade our rating to BUY (from ADD). The target price has been raised to Rs 3,100 (from Rs 2,915), maintaining our valuation multiple at 45x FY27E EPS," added Choice Broking. 

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.