Data Patterns Upgraded to 'Hold' Rating

Data Patterns (India), a midcap IT software company, has recently been upgraded to a 'Hold' rating by MarketsMOJO. This decision is based on the company's low Debt to Equity ratio, which is currently at 0 times. This indicates a healthy financial position for the company.
In terms of long term growth, Data Patterns has shown impressive numbers with an annual growth rate of 42.70% in Net Sales and 63.06% in Operating profit. The stock is also in a Mildly Bullish range, with technical trends improving since 20-Nov-23 and generating 8.75% returns since then. The DOW and OBV technical factors are also Mildly Bullish, further supporting the 'Hold' rating.

The majority shareholders of Data Patterns are the promoters, which can be seen as a positive sign for investors. The stock has also outperformed the market (BSE 500) with a return of 54.93% in the last year, compared to the market's 16.72% returns.

However, the company's results for Sep 23 were flat, with the lowest OPERATING CF(Y) at Rs -17.24 Cr. The INTEREST(Q) has grown at 31.40%, while PBT LESS OI(Q) has fallen at -12.1%. With a ROE of 12.7, the stock is currently trading at a Very Expensive valuation with a 9.6 Price to Book Value. However, it is still trading at a discount compared to its average historical valuations.

Despite the impressive returns in the past year, the profits of Data Patterns have only risen by 32%, resulting in a PEG ratio of 3.4. This indicates that the stock may be slightly overvalued at its current price. Overall, MarketsMOJO's 'Hold' rating suggests that investors should hold onto their positions in Data Patterns for now, while keeping an eye on its future performance.