Shares of this Defence stock under the ‘small-cap’ category jumped 4.50 percent after the company posted Q1FY24 results. In the past six months, the company’s scrip has gained more than 45 percent from Rs 1,454.50 to the current price level.
With a market capitalization of Rs 11,900 crores, the stocks of Data Patterns (India) Limited started their trading session on Wednesday at Rs 2,057.90 and currently trade at Rs 2,120, a gain of around 4.50 percent as compared to the previous close of Rs 2,031.35 apiece.
Keeping a purview of one year, the stock has proven to deliver multibagger returns of approximately 154 percent for its stakeholders, i.e., if someone would have invested Rs 1 Lakh into the stock, it would have converted to Rs 2.54 Lakhs within a period of one year.
Such movements in the company’s stock price are witnessed after a BSE filing dated 8th August 2023 wherein the company announced the financial results for the quarter ending June 2023.
Comparing Q1FY22-23 and Q1FY23-24, the company has reported tremendous growth as far as the operating revenues and net profits are concerned. The operating revenues went up from Rs 68 crores during June 2022 quarter to Rs 90 crores during June 2023 quarter, and, the net profits, during the same time period, moved up from Rs 14 crores to Rs 26 crores indicating an increase of 86 percent.
On a sequential basis, the company has lacked revenue generation and reported a dip in numbers from Rs 185 crores during Q4FY22-23 to Rs 90 crores during Q1FY23-24. Moreover, the after-tax profits took a hit due to the same and reported a reduction from Rs 55 crores to Rs 26 crores.
Additionally, the company has reported decent net profit margins of 27.3 percent during FY22-23, and, a ‘nil’ debt-to-equity ratio. As a result, it leads to provide a tag of a ‘fundamentally strong’ stock.
According to the shareholding pattern data available for June 2023 quarter, the Promoters hold a 42.41 percent stake, and the Foreign Institutional Investors (FIIs) hold a 5.32 percent stake in the company.
Data Patterns (India) Limited is a company engaged in the ‘Defense & Aerospace’ sector providing electronic solutions. The company offers a wide range of products across various platforms such as air, land, space, and sea. It operates in only one business segment, viz, manufacturing & sale of defense electronics.
Written by Amit Madnani
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