Data Patterns Q4 Results Review: Nirmal Bang Maintains 'Buy', Hikes Target Price

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Nirmal Bang Report

Data Patterns India Ltd.'s revenue, Ebitda, and PAT Growth during FY25EFY27E posted CAGR of 22%, 23%, and 17%, respectively. The stock has rallied by 48% in 1 month and is trading at a 1-year forward P/E of 60.4x, which is above its 3-year average of 52x.

We maintain a Buy rating on Data Patterns and value it at 62.5x Mar-27E EPS, implying an upside of 21.4% at a target price of Rs 3,401.

We have revised the target multiple to the earlier level of 62.5x, above the 3-year average P/E, for the following reasons:

1. Order book of Rs 7.3 billion as of Mar-25 and Rs 8.6 billion as on date including negotiated contracts. Orders valued at Rs 10-20 billion are anticipated in FY26 with execution projected over a span of five-six years.

2. The company anticipates emergency procurement MOD tenders during which the product categories are expected to undergo evaluation trials.

3. We are confident that within the defence sector, the company is strategically positioned to achieve revenue growth that exceeds guidance and maintain margin stability.

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