According to a report by JM Financial, the Indian defence industry is shifting towards domestic sourcing and export growth (FY23: ₹16,000 crore). Data Patterns anticipates repeat orders worth ₹2,000-3,000 crore.
The expected revenue/EPS CAGR is 32 per cent over FY23-25E, with improved cash conversion and return ratios. A recent QIP capital raise bolsters the balance sheet, enabling investments in emerging technologies.
The report also states, “Data Patterns is an established player in the defence and aerospace electronics industries with experience spanning more than three decades. The company follows an in-house design and development model capable of supplying sub-systems and complete products in Satellites, Radars, Electronic surveillance and monitoring, and Systems. Its building block approach (more than 1,000 developed in-house) sets it apart from the integration-based approach followed by many other defence companies. Data Patterns has been scaling up rapidly and had an order backlog of INR 9.7 billion as of June 23.
However, shares of the company were down by 0.44 per cent to Rs 2387 at 11.50 am on the BSE.