Data Patterns missed Q1 projections: Jefferies is still bullish; check target price
Data Patterns (India) is a firm that specialises in integrated defense and aerospace electronics solutions provider. The expertise of this company spans domains such as radars, electronic warfare, avionics, space systems and automatic test equipment.
Kolkata: Data Patterns (India) is a firm that specializes in the defence sector which is in focus for the past few years and is expected to remain in the news for the foreseeable future. New York-based investment banking and financial services major Jefferies Group has assigned a "buy" rating on this defence stock even after it has missed its Q1 (April-June) FY26 projections.
Data Patterns target price
According to Jefferies, the target price of Data Patterns is Rs 3,400 per share. Considering the price of the stock at 1:30 pm on August 12 at Rs 2,526.90, the target price assigned by Jefferies signals an upside of 34.55%. Jefferies also said that the miss of the Q1 sales of this company was mainly attributable to a deferment of revenue to the tune of Rs 270 crore. According to reports, this revenue will accrue to the company in Q2 (July-September) period of the current financial year. The 52-week high and 52-week low prices of this stock is Rs 3,268.80 and Rs 1,351.15 respectively.
Promising future
Jefferies has point out a bright future for the company. The brokerage is of the opinion that the company has in-house technology which will be of use in the expanding defence space. The profit projections are expected to grow by three times between FY26 and FY30. The company is valued by customer companies for delivering complex programs.
The company was incorporated as "Indus Teqsite Private Limited” in November 1998 in Bangalore. Over the years, it has turned into a vertically integrated Defence and Aerospace electronics solutions provider. Data Patterns is known for developing a few electronic systems with the support of it's in-house manufacturing facility.
Financial performance in Q1 FY26
The revenue from operations of Data Patterns decreased 4.56% (y-o-y) to reach Rs99.33 crore in the Q1 period of the current financial year. The company's profit also declined 77.64% and revenue dipped 74.92% in the same quarter. PBT was also down 21.86% (y-o-y) and it touched Rs YoY Rs 33.95 crore in Q1. Operational profits (EBITDA) slid by 13.70% to reach Rs 32.1 crore in Q1 FY26 against Rs 37.2 crore in Q1 FY25. The size of the order book is in excess of Rs 800 crore, state reports.
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