Data Patterns Reports 35.8% Drop in Profit After Tax Amid Bearish Market Signals

Data Patterns (India), a midcap player in the IT software sector, is currently facing challenges as reflected in its recent financial performance. The company reported a significant decline in profit after tax for the quarter ending September 2024, with figures dropping to Rs 30.28 crore, marking a decrease of 35.8%. Despite this setback, interest income for the past nine months has shown growth, reaching Rs 8.81 crore, an increase of 39.84%.
The company's operating profit to interest ratio stands at 12.12 times, indicating a tightening financial position. Technically, the stock is in a mildly bearish range, having generated a return of -1.41% since December 23, 2024. The Bollinger Band indicator has also been bearish during this period.

With a return on equity of 13.7 and a price-to-book value of 10.3, Data Patterns is considered to have a high valuation relative to its historical averages. However, the company maintains a low debt-to-equity ratio, averaging at 0 times, and has demonstrated healthy long-term growth, with net sales increasing at an annual rate of 23.27% and operating profit rising by 63.06%. Additionally, institutional holdings are robust at 23.47%, reflecting confidence from larger investors in the company's fundamentals.