Shares Of This Defence Company Hit 52-Week High Today, Analyst Sees Further Upside

Data Patterns shares have climbed up 6% this week, and ICICI Securities analysts see the stock going up another 9%.

The Data Patterns Analyst: The Chirag Shah-led analyst team at ICICI Securities maintained the ‘buy’ rating for the stock with a price target of ₹1,670- around 12% upside from the stock’s last closing price of ₹1,483.40.

The Data Patterns Thesis: The analysts said that defence and aerospace electronics solutions provider is one of the key beneficiaries in the private defence industry from the recent orders received by Bharat Electronics.

See Also: Lighting Stock Skyrockets 50% In Six Months, Analyst Forecasts Further 20% Upside

The company is expected to contribute to the fulfillment of many orders. In its research note, ICICI Securities said that the company is expected to contribute to “sub-systems or electronic components used in DR118 Radar Warning Receivers (RWR), Arudhra radar, Himshakti Electronic Warfare (EW), EW suite equipment for upgrade program of Mi-17 medium lift helicopters, weapon locating radars and fire control systems.”

Another order in which the analysts see the company playing a key role, is the defence contract bagged by BrahMos Aerospace Pvt Ltd (BAPL) for procurement of Next Generation Maritime Mobile Coastal Batteries (Long range) {NGMMCB (LR)} and BrahMos Missiles at an approximate cost of over ₹1,700 crore. DPIL has been the sole supplier of key electronic sub-systems for the BrahMos missile programme for the past many years.

The brokerage however noted that the stock is currently trading at a rich valuation that could limit the potential upside.

Price Action: Data Patterns share price was up 3.01% to trade at ₹1,528.10 in the early hours of trading on Tuesday.

Read Next: Larsen & Toubro Shares Continue Golden Run, Hit All-Time High On Monday

Don't miss a beat on the share market. Get real-time updates on top stock movers and trading ideas on Benzinga India Telegram channel.

Posted In: Analyst ColorAnalyst RatingsMoversTrading IdeasData PatternsDefense Contractor