Data Patterns (India) Limited

Industrials — Aerospace & Defense · NSE

₹4,077.00+₹38.10 (+0.94%)

DalalBaazaar Score

72 / 100

🟢 Good

Verdict

NEUTRAL

Risk

Moderate

Driven by small-cap size, which brings sharper price swings, a very high earnings multiple, which leaves little margin for disappointment, falling profits.

In simple words: Strong business and financial position, though profits are falling even as sales grow. Valuation is currently the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 8:28 pm

Understanding the Business

Company site ↗

The 60-second version of Data Patterns (India) Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

Data Patterns (India) Limited provides defense and aerospace electronics solutions in India.

IndustryAerospace & Defense

SectorIndustrials

Employees1,371

Annual revenue₹925 Cr

How does it make money?

Turns over ₹925 Cr a year. Of every ₹100 of sales, about ₹29 reaches shareholders as profit, with ₹41 left at the operating level before interest, tax and depreciation. Each of its 1,371 employees supports ₹67.5 lakh of revenue a year, the signature of a people-led business.

Revenue / employee₹67.5 lakh

Who are its competitors?

The closest listed comparisons in its industry are LARSEN & TOUBRO LTD., SIEMENS LTD, ABB INDIA LIMITED. These are the companies its valuation and returns are measured against elsewhere in this report.

Compared side by side in Peers ↓

What is its competitive advantage?Some evidence

ROCE of 20.4% is above what capital typically costs, which suggests some pricing power, though not yet the sustained, wide gap that marks a durable advantage.

Peer median ROE15.2%

What is the outlook?

9 analysts covering the stock expect revenue to grow about 28.4% and earnings to grow about 30.9% in the year to 2028. These are estimates by people who follow the company, not a forecast for the wider industry.

Est. revenue growth+28.4%

Est. earnings growth+30.9%

Analysts9

What has been driving growth?

Growth has come mainly from selling more, rather than from keeping more of each sale. Over 3 years revenue moved +104% while net margin moved +7% relative to itself. What this cannot tell you is which products, customers or geographies did the work — that lives in the segment disclosures of the annual report.

Revenue effect+104%

Margin effect+7%

DalalBaazaar Score

72/ 100

Good

Weighted across six categories. Every point is explained below.

✗ P/E of 85.2x is demanding — it needs sustained high growth to justify
• P/E is close to its own historical median of 84.0x
✗ P/B of 13.15x is a steep premium to book

Quality vs. Valuation

Company Quality

81/ 100

Excellent

How good the business is, ignoring the share price entirely.

Valuation

40/ 100

Expensive

What you are being asked to pay, ignoring how good the business is.

A good business, but the price already reflects that. The quality is real; the question is whether you are overpaying for it today.

Historical Valuation

Current P/E

85.2x

3Y Median

84.0x

40 monthly readings · mean 86.2x · range 44.3x–134.0x

Sector Median

88.8x

median of 3 sector peers

🟡Currently trading close to its 3y median of 84.0x — the market is paying about what it usually pays for this company.

🟡Against its sector it is priced broadly in line with the peer median of 88.8x.

vs. its own history

Fair

84.0x median over 40 months · +1%

vs. sector peers

Fair

88.8x median of 3 peers · -4%

vs. generic bands

Expensive

Above 35x

EV/EBITDA

60.3x

PEG

2.86

What's Good / What's Bad

🟢 What's Going Well5

Cash flow has turned positive
Free cash flow moved from negative to positive over 3 years.
Return on equity is rising
ROE has improved from 10.6% to 15.6%.
Return on capital is rising
ROCE has improved from 12.7% to 20.4%.
High return on capital employed
ROCE of 20.4% is the mark of a business that converts capital into profit efficiently.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention0

Nothing stands out as clearly deteriorating on the years of data available.

Red Flags

1 item require attention · 1 high

🔴Debt has risen sharplyFinancial
Total debt is up 112% over 3 years, from ₹2 Cr to ₹5 Cr.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Capital compounds at a high rate
ROCE of 20.4% means each rupee reinvested earns well above what capital costs. If the company can keep deploying at this rate, growth creates value rather than just consuming cash.
Self-funding with balance-sheet headroom
Positive free cash flow of ₹8 Cr alongside low debt means growth, buybacks or dividends need no outside money — and a downturn can be absorbed rather than refinanced.
Earnings have proved durable
Profitable in every one of the last 4 reported years. Consistency lowers the risk that any single bad year is structural rather than cyclical.

🔴 Bear CaseWhat could go wrong?

Size brings its own risk
Small Cap businesses are thinly traded, so exits are harder in a falling market and single events move the price more than they would for a larger company.

🟡 Key Things to WatchMeasurable tripwires, set against where this company stands today

1Revenue growth stays above 20% a year✓ 26.8% CAGR
Latest reported year was 16.8%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 39%✓ 40.8%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Free cash flow remains positive✓ ₹8 Cr
Profit that never becomes cash eventually stops being profit.
4Debt / EBITDA stays below 2x✓ 0.0x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
5ROCE stays above 17%✓ 20.4%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

9 / 12 checks passed

✓ Strong return on equity (ROE ≥ 15%)
✓ Strong return on capital employed (ROCE ≥ 15%)
✓ Healthy net margin (≥ 10%)
✓ Generates positive free cash flow
✓ Manageable leverage (Debt/Equity < 1.0)
✓ Adequate short-term liquidity (Current Ratio ≥ 1.0)
✓ Revenue growing year-over-year
✗ Profit growing year-over-year
✗ Not trading at an extreme valuation (P/E < 40x)
✓ Not buying right at the 52-week high
✓ Analyst consensus isn't majority-sell
✗ Short-term technical trend isn't bearish

Price history

Quick Metrics

6 good · 2 neutral · 3 weak

Market Cap

₹22,825 Cr

Small Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

85.2x

Expensive

Expensive — verify against sector peers

P/B Ratio

13.15x

Rich

Steep premium to book — needs high, durable returns to justify

EPS (TTM)

₹47.86

Profitable

Profitable on a per-share basis

ROE

15.6%

Strong

Strong capital efficiency

ROCE

20.4%

Strong

Earns comfortably above its likely cost of capital

Debt/Equity

0.30x

Low

Conservative leverage

Revenue Growth (YoY)

16.8%

Healthy

Healthy top-line growth

Profit Growth (YoY)

-13.4%

Falling

Profits are shrinking

Dividend Yield

0.25%

Modest

Small cash return — most of the return has to come from the price

Free Cash Flow

₹8 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

P/E (Forward)

50.4x

Improving

Below the trailing multiple — the street expects earnings to grow into the price

Operating Margin

21.9%

Good

Healthy core-business profitability

Net Margin

28.5%

Good

Strong bottom-line conversion

Current Ratio

10.45

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.55

Defensive

Steadier than the market

52W Range Position

68%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

4259.9 / 4460.4

Bearish alignment (short < long)

Price vs SMA 200

Above

Long-term uptrend

RSI (14)

28.6

Oversold zone

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹453 Cr	₹520 Cr	₹708 Cr	₹925 Cr	+26.8%
EBITDA	₹178 Cr	₹243 Cr	₹288 Cr	₹378 Cr	+28.4%
EBITDA Margin	39.4%	46.8%	40.6%	40.8%	—
PAT (Net Profit)	₹124 Cr	₹182 Cr	₹222 Cr	₹271 Cr	+29.8%
EPS	₹23.8	₹32.45	₹39.62	₹48.47	+26.8%
ROE	10.6%	13.7%	14.7%	15.6%	—
ROCE	12.7%	18.1%	18.9%	20.4%	—
Total Debt	₹2 Cr	₹4 Cr	₹6 Cr	₹5 Cr	+28.4%
Free Cash Flow	-₹57 Cr	₹52 Cr	-₹196 Cr	₹8 Cr	—

🟢 Revenue has grown at 26.8% a year over 3 years.

🟢 EBITDA has grown at 28.4% a year over 3 years.

🟢 EBITDA Margin has risen from 39.4% to 40.8% over 3 years (+1.5 pts).

🟢 PAT (Net Profit) has grown at 29.8% a year over 3 years.

🟢 EPS has grown at 26.8% a year over 3 years.

🟢 ROE has risen from 10.6% to 15.6% over 3 years (+5.0 pts).

🟢 ROCE has risen from 12.7% to 20.4% over 3 years (+7.6 pts).

🔴 Total Debt has grown at 28.4% a year over 3 years.

🟢 Free Cash Flow has turned positive, from -₹57 Cr to ₹8 Cr.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹1,929 Cr

Total Liabilities

₹193 Cr

Cash & Equivalents

₹57 Cr

Operating Cash Flow

₹80 Cr

Capex

-₹72 Cr

Shareholding (proxy)

Institutional Holding

19.8%

Insider Holding

52.2%

Corporate Actions

Dividend Rate

₹10

Ex-Dividend Date

24 Jul 2026

Analyst Consensus

Recommendations

5 Buy · 4 Hold · 2 Sell

Target Price (Mean)

₹4,578.45

+12.3% vs CMP

Target Range

₹3,940 – ₹5,545

Peer Comparison

Company	P/E	ROE
LARSEN & TOUBRO LTD.	30.1x	15.2%
SIEMENS LTD	88.8x	10.5%
ABB INDIA LIMITED	92.6x	19.1%

Recent News

1 mixed5 general

What Data Patterns (India) Holders Saw Early

Simply Wall Street, 18 Oct

Data Patterns hits new high, touches ₹5,000-mark; up 135% from January low

Business Standard, 21 Aug

Data Patterns (India) To Hold Q1 Earnings Call On July 31

Sahi, 28 JulResults

🟡Mixed / dependsA results event. The figures on this page update once the new statements reach the data feed, which usually lags the announcement.

HAL, BEL, Ideaforge, Data Patterns: Top defence stocks to buy; check targets & key expectations

Business Today, 15 Oct

Data Patterns closes trading window ahead of board meeting

scanx.trade, 10 Oct

Data Patterns (DATAPATTNS.NS) Rises 1.55% to ₹4,286.9, Holding Firm Above Key Support - Social Sentiment

siam.in, 30 Sept

Watch Items

Cross-check against the company's latest quarterly filing / investor presentation before acting.
RSI is in oversold territory — could mean either a bargain or a stock still falling for good reason. Check the 'why' before assuming reversal.

DalalBaazaar Thesis

StrongBusiness Quality · Financial Health · Growth · Profitability

MiddlingRisk

WeakValuation

Points for each in the Score ↑

Good business, demanding price

The quality is real and the price already reflects it. Buying here is a bet that the business keeps compounding for long enough to grow into the multiple — which good businesses often do, but it removes the margin for error that a lower price would have given you. 1 high-severity red flag sits above this conclusion and should be read first.

All 5 tripwires holding · see Key things to watch ↑