Data Pattern (DATAPATTNS)
Fast GrowerFairStock Score: 34/100 — RISKY
Score breakdown: P/E: 0/3 · ROCE: 1/2 · Growth: 2/2 · Dividend: 0/1
Key Financials
| Current Price | ₹4,455.8 |
| Market Cap | ₹24,945.33 Cr |
| P/E Ratio | 93.45 |
| ROCE | 21% |
| ROE | 16.38% |
| Dividend Yield | 0.22% |
| Profit Growth | -13.4% |
| Debt/Equity | 0 |
| Sales Growth | 16.8% |
| Free Cash Flow | ₹-0.84 Cr |
| Promoter Holding | 42.41% |
| 52-Week Range | ₹2,131 — ₹4,999 |
| Sector | Aerospace & Defense |
| Book Value | ₹310.08 |
Strengths
- Zero debt and strong balance sheet; healthy 21% ROCE and 16.38% ROE.
- Sales growth of 97.43% reflects strong demand in aerospace & defense.
- Altman Z-Score of 7.79 indicates very low bankruptcy risk.
- Promoter holding of 42.41% aligns owner interests, typically a positive signal.
Concerns
- P/E of 72.06 and P/B of 15.35 leave no margin of safety; price is far above Graham Number of ₹526.44.
- Free cash flow is negative at ₹-1 Cr, despite reported profits—earnings quality is questionable.
- Profit growth of 38.16% lags sales growth of 97.43%, indicating margin compression.
- Dividend yield of just 0.25% is negligible; returns must come from price appreciation alone.
AI Analysis
Let me look at Data Pattern through a Graham and Buffett lens. On the surface, this is a business I admire: aerospace and defense, an industry with high barriers to entry, and a clean balance sheet—zero debt. The company earns a respectable 21% ROCE and a 16.38% ROE, and its Altman Z-Score of 7.79 suggests financial strength. Sales growth of 97.43% is eye-popping, and profit growth of 38.16% shows the business is scaling. But I cannot ignore the gap between those two numbers—profits are growing far slower than sales, which tells me margins are under pressure. And despite that growth, free cash flow is minus ₹1 crore. That is a red flag for me: earnings are not converting into cash for owners. Now, valuation. At ₹4,134, the stock trades at a P/E of 72 and a P/B of 15.35. Graham's Number—a conservative estimate of fair value—is ₹526. That means the market is pricing in near-perfection for many years to come. There is no margin of safety here; in fact, it's deeply negative at -509.8%. This is the kind of stock Graham would call speculative, not investment. The business may be excellent, but price is what you pay, and value is what you get. At this price, I get very little value. As a disciplined investor, I would wait—watch for margin stability, cash flow generation, and a much lower entry point. For now, it's a fast grower, but certainly not a bargain.
Data from BSE/NSE filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer