Don't miss the action in this small-cap multibagger company in the defence and aerospace sector; which received a rating upgrade!
Subtitle: Rating Boost, Space-Tech Deal, and Explosive Q1 2023 Growth
ICRA Rating Upgrade:
ICRA Limited has upgraded the long-term and short-term ratings for Data Patterns (India) Ltd.'s (DPIL) bank facilities. The long-term rating was raised from [ICRA]A- to [ICRA]A, with a Stable outlook, and the short-term rating from [ICRA]A2+ to [ICRA]A1. This upgrade reflects ICRA's belief that DPIL's financial performance has significantly improved in recent years, driven by robust revenue and profitability growth. ICRA also highlights the company's strengthened balance sheet, with reduced debt levels and improved cash flows.
Recent Press Release:
On October 16, 2023, Data Patterns (India) Limited announced a Licensing and Transfer of Technology (ToT) agreement with IN-SPACe, a part of ISRO, to acquire miniature SAR Radar capability. This enhances their radar portfolio and integrates AI for object detection. The technology, developed at ISRO's Space Applications Centre (SAC), is a precursor to ISRO's NISAR satellite. This collaboration is set to optimize India's space resources in line with recent policy changes, potentially boosting Data Patterns (India) Limited's competitiveness and product offerings, driving business growth.
Financials:
In Q1 2023, the company achieved robust top-line growth with a 31.16 per cent increase in sales, reaching Rs 89.69 crore, signalling strong revenue expansion. Other income experienced a remarkable surge of 582.94 per cent, amounting to Rs 11.61 crore, demonstrating diversified income sources. The company's operational efficiency improved, as evidenced by the 71.85 per cent growth in Profits Before Interest, Depreciation, and Taxes (PBIDT), reaching Rs 39.44 crore. However, interest expenses increased by 10.97 per cent, reflecting the impact of financing costs. The bottom line also exhibited impressive performance, with a significant 81.39 per cent growth in Profit After Tax (PAT), reaching Rs 25.83 crore. These results indicate positive momentum in the company's financial performance for Q1 2023, making it all the more remarkable considering that this stock has delivered more than 300 per cent returns to investors.
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Disclaimer: This article is for informational purposes only and not investment advice.