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Defence stocks are flying, and Data Patterns is no exception. Today, Data Patterns share price shot up nearly 9 per cent intraday after the company posted a solid set of Q4 numbers. It eventually cooled off but is currently trading nearly 2 per cent higher, even as the broader market took a breather.
What's fuelling the rally? A 60 per cent jump in profit, new defence orders worth Rs 355 crore, and a dividend sweetener. But is it all priced in?
What's happening
The company delivered a strong Q4 FY25 performance:
-
Revenue
: Rs 396 crore (up 94 per cent YoY)
-
Net profit
: Rs 114 crore (up 61 per cent YoY)
-
Final dividend
: Rs 7.90 per share
- Fresh orders : Rs 355 crore in Q4 alone
That's a sharp earnings beat, backed by strong execution. And the company's management sounded confident about a faster order flow, given the government's continued defence push.
Why the stock is in focus
This isn't the first time Data Patterns has rallied. Over the last year, it's up more than 50 per cent. It's riding the broader 'Make in India' defence theme. With a growing order book and good profit margins, the fundamentals look solid.
But here's the catch: it's expensive.
-
P/E ratio
: 72
-
P/B ratio
: 11.5
- Dividend yield : 0.2 per cent
That's a steep valuation—much higher than bigger peers like BEL or HAL.
What the company does
Chennai-based Data Patterns designs and makes electronic systems used in Indian defence platforms—from fighter jets like Tejas to missiles like BrahMos. Unlike many others in the space, it's fully integrated—from design to deployment. This gives it better margins and more control over timelines and tech.
Below are the company's fundamental metrics:
| Metric | Value |
|---|---|
| Market cap | Rs 16,063 cr |
| Revenue (TTM) | Rs 708 cr |
| Net profit (TTM) | Rs 222 cr |
| ROE | 14.6 per cent |
| ROCE | 20.2 per cent |
| P/E Ratio | 72.4 |
| P/B ratio | 11.5 |
| Industry P/E | 77.65 |
| EV/EBITDA | 49.6 |
| Dividend yield | 0.2 per cent |
| Debt to Equity | 0 |
| EPS | Rs 39.6 |
Value Research ratings
-
Overall
: ★★★★☆ (4/5)
-
Quality
: 8/10
-
Growth
: 8/10
-
Valuation
: 3/10
- Momentum : 6/10
So yes, the company scores high on quality and growth. But on valuation? Not so much.
Quick snapshot
| Metric | Data Patterns | BEL | HAL |
|---|---|---|---|
| P/E ratio | 72 | 53 | 41 |
| Dividend yield | 0.2 per cent | 0.6 per cent | 0.5 per cent |
| 1Y return | -11.65 per cent | 41.50 per cent | 5.91 per cent |
Final word
Data Patterns is flying high—and with good reason. Strong earnings, fresh orders, and solid growth prospects make it a standout in India's defence playbook. If you already own the stock, sit tight and enjoy the rally. But if you're eyeing an entry now, be cautious. At over 70x earnings, this is not a cheap ticket. A lot of optimism is already priced in. Great company, no doubt—but maybe not the best time to board.
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Disclaimer: This is not a recommendation. This story was created with the assistance of artificial intelligence and is intended for informational purposes only. Please take it with a pinch of salt and do your own research or consult a financial advisor before making investment decisions.
Disclaimer: This content is for information only and should not be considered investment advice or a recommendation.
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