DATA PATTERNS (INDIA) LTD.                                                                                         

DATE:05/10/2025

NSE: DATAPATTNS

LARGE CAP | MARKET CAP: ₹15,873 Cr

SECTOR: DEFENCE & AEROSPACE

INDUSTRY: ELECTRONICS & SYSTEMS

ALL NUMBERS AND INFORMATION WHEN THE REPORT WAS MADE

COMPANY OVERVIEW

Data Patterns (India) Ltd., founded in 1998 and headquartered in Bangalore, is a leading indigenous defence and aerospace electronics company offering design-to-delivery solutions.
The company’s integrated operations span R&D, manufacturing, assembly, and testing, making it one of the few Indian firms with full-stack defence electronics capability.

Key Offerings: Airborne and ground-based radars, electronic warfare (EW) systems, avionics, sonar, and automatic test equipment.
Promoter Holding: ~51%, ensuring strong management control.
R&D Investment: ₹120 Cr annually (~17% of revenue), reflecting deep technological focus.
Strategic Focus: Aligns with India’s “Make in India” and Atmanirbhar Bharat initiatives to enhance domestic defence production.

BUSINESS SEGMENTS

1. Defence Electronics – ~85% of Revenue
   - Radar & Sonar Systems: Border surveillance radars, naval sonar systems, and missile guidance modules.
   - Avionics & EW Suites: Mission computers, cockpit displays, electronic countermeasure systems.
   - Automatic Test Equipment (ATE): Custom-built test systems for DRDO, ISRO, and DPSUs.
   - Clients: Indian Army, Navy, Air Force, DRDO, HAL, BEL, and ISRO.

2. Space & Civil Electronics – ~15% of Revenue
   - Space Electronics: Payload communication systems, RF/microwave modules, and power supplies for satellites.
   - Industrial & IoT Solutions: Embedded control units, industrial automation, and smart monitoring devices.

STRENGTHS

High Entry Barrier, Strong Order Book (₹1,079 Cr), Superior Margins (OPM 38.8%, NPM 30.5%), Low Debt (D/E 0.05), Strategic OEM Partnerships, and Make-in-India Beneficiary.

WEAKNESSES

Premium Valuations (P/E 71.6×), Revenue Concentration Risk, Lumpy Order Flow, and Moderate Free Cash Flow.

OPPORTUNITIES

Defence Capex Upsurge, Export Growth (Middle East & SE Asia), Space Commercialization, AI & Autonomous Systems, and Civil IoT Expansion.

THREATS

Procurement Delays, Competition (Thales, Saab, BEL), Import Dependence, Policy Shifts, and Execution Risks.

KEY POINTS (ANNUAL & QUARTERLY)

KEY RATIOS

SHAREHOLDING PATTERN

Promoters: 42.41%
Institutional Investors: 8.08%
Foreign Institutional Investors: 12.78%
Public & Others: 36.72%

OVERALL ASSESSMENT

Data Patterns stands out as a pure-play defence electronics leader with a high-margin business model, robust order book, and technology ownership. While valuations remain elevated, the company’s consistent growth, R&D strength, and alignment with national security objectives make it a long-term compounder.

Investors may consider buying on dips for long-term exposure to India’s defence growth story.

TECHNICAL ANALYSIS

The daily chart shows Data Patterns carving out an ascending triangle into late September, with the rising trendline anchored by higher lows around ₹2,400–2,450 (February low to August low) and a flat upper boundary near ₹2,900. Today’s sharp breakout above both the triangle’s top and a descending resistance line confirms a bullish continuation of the uptrend that began in March 2025.

Key observations:

• Rising Support: Trendline from ₹1,350 in March through ₹2,450 in August now converges near ₹2,700, offering a strong support zone.
• Descending Resistance: Upper slope from the June high of ₹3,260 down to recent peaks was breached decisively at ₹2,820, signalling trend reversal.
• Measured Move: Triangle height (~₹550) projects a target of ~₹3,450 (₹2,900 + ₹550).
• Retest Zone: ₹2,800–2,850 area should serve as support if price pulls back.

Trading Plan:
Entry: On successful retest of ₹2,800–2,850 with bullish price-action signal.
Stop-Loss: Below ₹2,570 (
Targets: T1: ₹3,200; T2: ₹3,450.

DISCLAIMER:

SEBI registration is not a guarantee of profit. Stock market investment/trading is subject to market risk. This report has been prepared by THE MONEY MINT, the marketing name of the RITU CHAUHAN SEBI (Research Analyst) (Registration No. INH000014456), and is solely for the information of the recipient only. The report must not be used as a singular basis for any investment decision. The views expressed herein are general and do not take into account the risk appetite or the specific circumstances of an individual investor; readers are advised to seek professional advice before investing. Nothing in this document should be construed as investment advice. Each recipient of this document should make such investigations as they deem necessary to arrive at an independent evaluation of an investment in securities of the companies referred to in this document and should consult their advisors to determine the merits and risks of such investment. The information and opinions contained herein have been compiled or arrived at, based upon information obtained in good faith from publicly available sources. Such information has not been independently verified and no guarantee, representation or warranty, express or implied, is made as to its accuracy, completeness or correctness. All such information and opinions are subject to change in accordance with market scenarios. Descriptions of any company or companies or their securities mentioned herein are not intended to be complete. THE MONEY MINT or RITU CHAUHAN or associates are not obliged to update this report for such changes. THE MONEY MINT or RITU CHAUHAN or the associates are not responsible for profit or loss.

CONTACT: themudrakaars001@gmail.com

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