Neutral Data Patterns India; target of Rs 2950: Motilal Oswal

Motilal Oswal's research report on Data Patterns India

Data Patterns (DATAPATT) reported a strong quarter, with revenue surging 3.4x YoY. This growth was fueled by a high contribution from the Development segment (up 106x YoY), as the company delivered a strategic contract of ~INR1.8b (taken at a competitive price considering possible long term opportunities). However, this resulted in a 15.4pp YoY dip in EBITDA margin. Further, the Production/Service segments grew 24%/69% YoY.

Outlook

We estimate a revenue/EBITDA/adj. PAT CAGR of 28%/28%/28% over FY25-28. We reiterate our Neutral rating with a TP of INR2,950 (premised on 40x Sep’27E EPS).