Thread: Data Patterns - Great business worth looking at for the long term .
#learningwithSandeepR #DataPatterns #defense
#learningwithSandeepR #DataPatterns #defense
Strong Revenue and PAT Growth: Data Patterns India Limited achieved a remarkable 46% growth in revenue and a PAT growth of 32% year-on-year (YoY).
Strong Cash Position: As of March 31, 2023, Data Patterns holds over 650 Crores in cash and cash equivalents. This robust cash position provides the company with financial stability and flexibility for future endeavors.
Healthy Order Book: The current order book exceeds 1000 Crores, providing revenue visibility for the future. The execution schedule for the order book spans over multiple years, with approximately 50% planned for the current year, 50% for the next year.
Expected Order Inflows: Data Patterns anticipates sizable order intake in FY2024, including back-to-back contracts from public sector companies such as BEL and HAL. This expectation indicates a positive outlook for future business growth and market demand.
Focus on RnD: The management team is fully focused on developing next-generation products to scale the company's operations. Data Patterns aims to enhance engineering capabilities, develop new products, and secure future production contracts.
Data Patterns aims to secure strategic contracts from DRDO to drive business growth while maintaining a target EBITDA margin range of 40%. The company is also focused on developing products for radar and EW markets, aiming for self-reliance in India's defense sector.
Data Patterns is investing significantly in the satellite market, aiming to design world-class satellites to meet defense requirements and potentially expand their business in this domain. The company has raised 500 Crores through a Qualified Institutional Placement (QIP) for it.
Data Patterns expects gross margins of its own products to remain strong, around 65%. This indicates the company's ability to maintain profitability and generate healthy returns on its product offerings.
Bharat Electronics has revealed the orders back to back, they should be able to get those contracts which makes the order book is sizeable like last year. This year also they expect that there will be more than 600 to 700 Crores contracts.
They have a great management team . The valuations are high now , but good results will justify them .
Moniter the results and take a call on investing . This is just a case study of a good company .
#retweet if you found it useful .
Moniter the results and take a call on investing . This is just a case study of a good company .
#retweet if you found it useful .
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