(High risk investors may Subscribe)
| Issue Size- 10,276,874 – 10,055,114 shares | Issue Open/Close – Dec 14 /Dec 16, 2021 |
| Price Band (Rs) 555-585 | Issue Size- Rs 5.88 bn |
| Face Value (Rs) 2 | Lot Size (shares) 25 |
Data Patterns (India) Ltd. is one of the few integrated defence and aerospace electronics solutions providers catering to the indigenously developed defence products industry. They have proven in-house design and development capabilities and experience of more than three decades (including through their erstwhile subsidiary) in the defence and aerospace electronics space. Their offerings cater to the entire spectrum of defence and aerospace platforms – space, air, land and sea.
The company offers products to the entire spectrum of defence and aerospace platforms – space, air, land, and sea. The company’s core competencies include electronic hardware design and development, software design and development, firmware design and development, mechanical design and development, product prototype design and development, functional testing and validation, environment testing and verification, and engineering services opportunities. The company intends to continue to expand its capabilities and product portfolio to enhance its offerings in the defence and aerospace electronics space, especially in complex technology-based products. It also intends to augment its design and development capabilities for its various verticals, including its design verticals, through procurement of additional software, testing equipment or other related hardware.
It has diversified products and solutions mainly due to design and development capabilities, and a qualified and experienced workforce. As of September 30, 2021, it had 818 employees with more than 500 qualified engineers, including 416 members in Design & Engineering department. As of September 30, 2021, it has on hand 105 orders worth Rs. 581.30 crore.
Indigenous integrated and strategic defence and aerospace electronics solutions provider: Since its inception, the company has focused on designing and building its own products. The company has extended its product focus across the manufacturing value chain from industrial and test automation to automated test equipment for space systems to developing products and sub-systems for defence and aerospace systems through DRDO.
Sound order book across product categories: As on September 30, 2021, the company had an order book of Rs 581.30 crore (2.6x FY21 revenue), with orders from several marquee customers in the Indian defence ecosystem, including the Indian government defence ministry, BrahMos, DRDO, the Indian government space organisation, HAL, BEL and a DPSU involved in the missile space. The company is currently engaged in the supply of products to several prestigious defence projects in India, including the LCA, the HAL Dhruv, LUH and the BrahMos missile programme.
The modern certified manufacturing facility of international standards: The company’s in-house design and development capabilities are complemented by a 100,000 square feet manufacturing facility located on 5.75 acres of land at the IPCOT Information Technology Park, Siruseri, Chennai, which has facilities for design, manufacturing, qualification and life cycle support of high-reliability electronic systems used in defence and aerospace applications.
Valuation
Data Patterns is among the few vertically integrated defence and aerospace electronics solutions provider catering to the indigenously developed defence products industry. Data patterns is well positioned to benefit from the government’s ‘Atmanirbhar Bharat’ and ‘Make in India’ initiatives. Strong capabilities across segments, robust order book of Rs 581 crore (2.6x FY21 revenue) and an order pipeline of Rs 1500 crore augurs well for the Company. At the upper price band of Rs.585, the stock is trading at a PE of 54.6x FY21 EPS. The issue appears to be fully priced. High risk investors may consider Subscribing to the issue from a longer-term perspective.
Must Read: Wealth Creation Myths Every Young Investor should Know!
A financial planning platform where you can plan all your goals, cash flows, expenses management, etc., which provides you advisory on the go. Unbiased and with uttermost data security, create your Financial Planning without any cost on: http://bit.ly/Robo-Fintoo
Disclaimer: The views shared in blogs are based on personal opinion and does not endorse the company’s views. Investment is a subject matter of solicitation and one should consult a Financial Adviser before making any investment using the app. Making an investment using the app is the sole decision of the investor and the company or any of its communication cannot be held responsible for it.
