Jefferies has advised to buy the stock. The brokerage started its coverage this year. Jefferies expects the company to grow rapidly.
Data Patterns Share Price Target
Shares of Data Patterns, a company making electronic products for the army, are expected to rise. International brokerage Jefferies has expected a rise of 25 percent in this stock. Brokerage has advised to buy this share. The target price of the share has also been increased to Rs. 4135. Data Patterns recently released its March quarter results. The company’s quarterly results have been good. That is why the brokerage’s confidence in it seems to have increased.
Strong Performance Amidst Challenges
The company has made a profit of Rs 71 crore in the March quarter. This is 28 percent more than the same quarter of FY 2022-23. Then the company’s profit was Rs 55.4 crore. However, the company’s sales have declined by 2 percent. It has come down from Rs 185 crore to Rs 182 crore on an annual basis. Jefferies says that the company’s EBITDA of Rs 93 crore in the fourth quarter was in line with the estimate. The company’s management is expecting a growth of 25 percent for the next 2-3 years. Data Patterns expects to get orders worth Rs 1000 crore in FY 25.
Strategic Positioning in Defense Sector
According to Jefferies, Data Patterns is a leading company manufacturing electronic products for the defense and aerospace sectors. The brokerage estimates that this company will grow 5 times by FY 24-30. The brokerage has started covering data patterns this year. Let us tell you that India is among the top 3 countries in terms of spending on defense. However, its expenditure is much less than that of US and China. India is the second largest defense equipment importer. According to Jefferies, there is still a lot of space for expenditure in the defense sector in India and there is also a lot of opportunity for export. According to brokerage, the company can take advantage of this.
Also Read: Expert Predictions for Tata Group Share Price Targets Revealed!
Data Patterns Market Performance
According to data patterns, the shares closed at Rs, 3176 on Tuesday with a decline of 4.36 per cent. This stock has given returns of more than 98 percent in one year. This means that the investment in this stock has almost doubled in one year. The market cap of the company is around Rs 18500 crore.
Disclaimer
Information here is for education only. Not investment advice. Consult a financial advisor for decisions."