Why Data Patterns Share Price is Rising

The defence sector has been experiencing growing investor interest. This surge is driven by increasing defence budgets, technological advancements, and geopolitical tensions.

As India focuses on enhancing its defense capabilities, companies within this sector are witnessing substantial growth. The sector's potential for long-term profitability and stability makes it attractive to investors.

Data Patterns (India) is a key player in the expanding defence electronics market. The company specialises in developing and manufacturing electronic systems for the defence and aerospace sectors.

Its products include radars, avionics, electronic warfare systems, and other critical defence technologies. Data Patterns has established a strong reputation for delivering high-quality, reliable products that meet stringent defence standards.

The company's share price performance has been remarkable. Over the past month, Data Patterns' share price has surged by 10.9%. In just the last five days, it increased by 5.4%.

This rapid ascent has piqued investor curiosity, leading many to explore the factors driving this upward trajectory.

Let's take a deeper look.

#1 Anticipation of Quarterly Results

Investors are eagerly awaiting Data Patterns' upcoming quarterly results. The company has scheduled a board meeting on 29 July 2024 where it will declare the results.

The company has consistently reported strong results over the past year, building significant investor confidence. This reliable performance history suggests that the upcoming results may continue this positive trend.

#2 Order Win

On 11 July 2024, a report highlighted a significant development for Data Patterns (India). The article reported that the Defence Research & Development Organisation (DRDO) awarded a new project to Data Patterns under the Technology Development Fund scheme.

The company clarified on the next date the company had signed the contract with DRDO but it was yet to receive the counter signed contract.

Data Patterns has stated that the information regarding this contract is not considered material enough to require disclosure under SEBI regulations.

Additionally, the sensitive nature of such contracts restricts disclosure unless the government customer releases the information to the public.

The company signed a contract with DRDO valued at Rs 100 million (m). Of this amount, Rs 90 m will be funded by DRDO as a grant-in-aid, and the remaining Rs 10 m will be borne by the company.

This contract, while not deemed material by the company due to its value, still garnered significant attention from investors.

The anticipation of future revenue from this and other contracts and the association with DRDO boosted investor confidence.

What Next?

Data Patterns is poised for growth with a multi-faceted strategy focusing on enhanced export opportunities, innovation, and strategic collaborations.

The company aims to leverage its strong domestic foundation to enter new global markets and make significant investments in research and development.

This includes creating advanced solutions for defence and aerospace, such as sophisticated radar systems and electronic warfare suites.

Additionally, Data Patterns is expanding its facilities to include advanced manufacturing capabilities and enhancing its environmental test laboratory.

The company is actively pursuing a robust order book, currently at Rs 10.8 billion (bn). It expects to add Rs 2-3 bn more over the next few years. Human capital development is also a priority, with efforts to refine HR processes and employ AI-driven practices for talent acquisition and retention.

Looking ahead, the company targets steady revenue growth by reducing business seasonality and maintaining a stable order inflow. It aims to build on a 15% revenue increase from the previous financial year.

The company is strengthening its position in the global defence electronics market. It will receive a boost from the 'Make in India' initiatives to reduce dependency on imports.

It also plans to align with the government of India's US$ 130 bn investment in defence modernisation, contributing to indigenous manufacturing and private sector involvement.

The company is well-positioned to capitalise on emerging opportunities in the defence sector, both in India and globally.

How Data Patterns Share Price has Performed Recently

In the past five days, Data Patterns share price has rallied 5.1%. In the last month, it is up 10.6%.

In 2024, so far its share price has surged 79.3%. Additionally, it is up 64.5% in the last one year.

The stock touched its 52-week high of Rs 3,654.8 on 5 July 2024 and a 52-week low of Rs 1,735.1 on 26 October 2023.

About Data Patterns

Data Patterns is a vertically integrated defence and aerospace electronics solutions provider catering to the indigenously developed defence products industry.

Data Patterns' key strength is founded on over two-decade history of developing high reliability products in this domain. It has the broad capability to develop and manufacture high reliability products.

The company has developed several electronic systems for its customers with the support of its captive manufacturing facility and attention to detail. It achieves its philosophy of manufacturing products with the reliability of life span expected in its market domain.

The company was incorporated as Indus Teqsite on 11 November 1998, at Bangalore Karnataka.

For more details about the company, you can have a look at Data Patterns factsheet and quarterly results on our website.

And to know what's moving the Indian stock markets today, check out the most recent share market updates here.

Happy Investing.

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