Data Patterns' Q2 FY27 PAT was ~67% below Systematix' estimates. Sharp fall in revenue led to lower profitability on a high fixed employee cost base. There are delays related to customer inspections in certain shipments. The brokerage expects them to gradually ease out and the underperformance more of a timing issue. Order Inflow has been robust in H1 FY27 (~Rs 1,160 crore) with orderbook reaching Rs 1,742 crore (+159% yoy) at the end of Q2.
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Systematix Report
Following Data Patterns India Ltd.'s Q2 results, brokerage firm Systematix has maintained its Buy rating, implying a potential upside of about 25.92% from the reports market price. The brokerage values the company at 55 times average FY28E and FY29E earnings per share to arrive at a target price of Rs 5,100.
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Data Patterns' Q2 FY27 PAT was ~67% below Systematix' estimates. Sharp fall in revenue led to lower profitability on a high fixed employee cost base. There are delays related to customer inspections in certain shipments. The brokerage expects them to gradually ease out and the underperformance more of a timing issue.
Order Inflow has been robust in H1 FY27 (~Rs 1,160 crore) with orderbook reaching Rs 1,742 crore (+159% yoy) at the end of Q2.
The company has ~Rs 956 crore worth of orders which are negotiated but awaiting final PO. Additionally, the company's order inflow pipeline in FY27 is expected to be ~Rs 2,000 croren (including HAL's Avionics order, Brahmos Seeker order).
The company is also expecting significant traction from counter-drone command and control. The progress on EW shields for Super-Sukhoi is on track with user trials expected after December.
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