Data Patterns share jumped 100 percent over the past year.
live bse livense live Volume Todays L/H More ×International brokerage Jefferies raised its share price target of aerospace and defence player Data Patterns to Rs 4,135.
At 1.15 pm, Data Patterns stock was trading lower by 4 percent on the NSE at Rs 3,191 per share.
The management highlighted 25 percent revenue growth for the next two-three years, while margins will remain steady around the 40 percent mark.
Story continues below Advertisement Remove AdFor FY25, Data Patterns expects orders worth over Rs 1,000 crore from the defence sector.
Data Patterns share jumped 100 percent over the past year.
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nse live Volume Todays L/H More ×
International brokerage Jefferies raised its share price target of aerospace and defence player Data Patterns to Rs 4,135.
The international brokerage reiterated its buy call, but increased its price target on the company from Rs 3,545 to Rs 4,135. This implies an upside of 24.5 percent.
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For the March quarter, Data Patterns posted net profit of Rs 71 crore, marking 28 percent increase from Rs 55.4 crore in the same quarter a year ago.
However, net sales slipped 2 percent year-on-year to Rs 182 crore in Q4FY24, as against Rs 185 crore in the March quarter of FY23.
At 1.15 pm, Data Patterns stock was trading lower by 4 percent on the NSE at Rs 3,191 per share.
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Jefferies said that the defence player's Q4 EBITDA of Rs 93 crore was in-line with estimates as higher margins offset the lower revenue growth.
The management highlighted 25 percent revenue growth for the next two-three years, while margins will remain steady around the 40 percent mark. Jefferies also noted that the improvement in the RoE and working capital are upside drivers.
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For FY25, Data Patterns expects orders worth over Rs 1,000 crore from the defence sector. The firm manufactures, sells, and services defense electronics.
Jefferies initiated coverage on Data Patterns earlier this year, on April 11. Data Patterns is a top player in defence and aerospace electronics, expected to see nearly 5x revenue growth from FY24 to FY30 due to indigenisation and export opportunities, a Jefferies report said.
India ranks among the top three global defence spenders but trails significantly behind the US and China. Despite its sizable coastline and land area, defence spending remains comparatively low. India is the second-largest importer of defence equipment with a focus on capital expenditure, expected to maintain a 7-8 percent CAGR.
The indigenisation efforts will drive domestic defence spending growth, with exports expected to reach $7 billion by FY30. Major export destinations include Italy, Egypt, the UAE, and Saudi Arabia, with the Middle East offering significant opportunities, particularly in Qatar and Saudi Arabia, the Jefferies report said.
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