Current Rating Overview
MarketsMOJO currently assigns a Sell rating to Data Patterns (India) Ltd, reflecting a cautious stance on the stock. This rating was revised on 29 January 2026, when the Mojo Score declined by 16 points from 64 to 48, moving the grade from Hold to Sell. The rating encapsulates a comprehensive evaluation of the company’s quality, valuation, financial trend, and technical outlook as of today.
How the Stock Looks Today: Quality Assessment
As of 10 February 2026, Data Patterns (India) Ltd maintains a good quality grade. This indicates that the company demonstrates solid operational fundamentals and a stable business model within the Aerospace & Defense sector. The firm’s return on equity (ROE) stands at a healthy 16.5%, signalling effective utilisation of shareholder capital. Such a ROE level is generally considered favourable in this sector, suggesting that the company is generating reasonable profits relative to equity.
Valuation Considerations
Despite the positive quality metrics, the stock is currently rated very expensive on valuation grounds. Trading at a price-to-book (P/B) ratio of 10.4, Data Patterns commands a significant premium compared to its peers and historical averages. This elevated valuation implies that investors are pricing in substantial growth expectations. However, the premium also raises concerns about limited upside potential and increased risk should growth slow or market conditions deteriorate.
Financial Trend and Profitability
The company’s financial trend remains positive. As of 10 February 2026, Data Patterns has delivered a remarkable 52.82% return over the past year, reflecting strong investor confidence. Profit growth has been robust as well, with profits rising by 39.5% over the same period. The price-earnings-to-growth (PEG) ratio stands at 1.6, indicating that while growth is priced in, it is not excessively stretched relative to earnings expansion. This suggests that the company’s earnings trajectory supports its current valuation to some extent.
Technical Outlook
From a technical perspective, the stock is rated as mildly bearish. Recent price movements show some short-term weakness despite positive returns over longer periods. The stock gained 1.82% on the latest trading day and has posted gains of 9.67% over the past week and 7.76% over the last month. However, the mildly bearish technical grade indicates potential resistance levels or consolidation phases that investors should monitor closely.
Performance Summary
Looking at the broader performance metrics as of 10 February 2026, Data Patterns has shown consistent gains across multiple time frames: 8.88% year-to-date, 17.68% over six months, and 8.01% over three months. These figures underscore the stock’s resilience and appeal in the current market environment, despite valuation concerns and technical caution.
What the Sell Rating Means for Investors
The Sell rating suggests that investors should exercise caution with Data Patterns (India) Ltd at present. While the company exhibits strong quality and positive financial trends, the very expensive valuation and mildly bearish technical signals imply limited near-term upside and elevated risk. Investors may consider this rating as a prompt to review their exposure and assess whether the current price adequately compensates for potential downside risks.
Sector and Market Context
Operating within the Aerospace & Defense sector, Data Patterns is classified as a small-cap stock. This sector often experiences volatility linked to government contracts, geopolitical developments, and technological innovation cycles. The stock’s premium valuation reflects optimism about its growth prospects, but investors should weigh this against sector-specific risks and broader market conditions.
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Investor Takeaway
In summary, Data Patterns (India) Ltd’s current Sell rating by MarketsMOJO reflects a balanced view that recognises the company’s operational strengths and growth potential while highlighting valuation and technical concerns. Investors should carefully consider these factors in the context of their portfolio objectives and risk tolerance. The stock’s strong returns and profit growth are encouraging, but the premium valuation and technical signals warrant prudence.
Looking Ahead
Market participants should continue to monitor quarterly earnings, sector developments, and broader economic indicators that could impact the Aerospace & Defense industry. Any shifts in government spending, contract awards, or geopolitical tensions may influence Data Patterns’ outlook and valuation. Staying informed on these fronts will be crucial for making well-timed investment decisions.
Summary of Key Metrics as of 10 February 2026
• Mojo Score: 48.0 (Sell grade)
• ROE: 16.5% (Good quality)
• Price to Book Value: 10.4 (Very expensive valuation)
• PEG Ratio: 1.6 (Moderate growth pricing)
• Stock Returns: 1D +1.82%, 1W +9.67%, 1M +7.76%, 3M +8.01%, 6M +17.68%, YTD +8.88%, 1Y +52.82%
These figures provide a comprehensive snapshot of the stock’s current standing and underpin the rationale behind the Sell rating.
Conclusion
Data Patterns (India) Ltd’s current rating of Sell by MarketsMOJO is a reflection of its present valuation and technical outlook, despite solid quality and positive financial trends. Investors should weigh these factors carefully and consider the stock’s premium pricing relative to its growth prospects before making investment decisions.
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