defense
Data Patterns
DATAPATTNS · Nifty 50
₹4,769.6
Price 2026-06-17
At a Glance
Fundamental
85/100
STRONG
Trust
95/100
Verification
Coverage
44/100
LIMITED
Quick Take
Data Patterns scores 85/100 on fundamentals (strong). Data Patterns: BROAD EXPANSION regime.
Fundamental Score: 85/100 · STRONG · 2 signals detected
DuPont Analysis
ROE 15.6% broken into three drivers. Each shows how efficiently the company generates returns.
ROE of 15.63% is moderate margin-driven and stable. Net margin of 29.3% × asset turnover of 0.48x × leverage of 1.1x.
What This Means
Net margin of 29.3% means the company keeps ₹29.3 as profit for every ₹100 of revenue. This is a healthy margin. Asset turnover of 0.48x means the company generates ₹0.48 of revenue for every ₹1 of assets. This is a capital-heavy business. Leverage of 1.1x means the company uses moderate debt. Returns are primarily driven by operations, not borrowing.
Margin Structure
Gross
63.2%
Operating
40.7%
Net
29.3%
Gross margin 63.2% → operating margin 40.7% → net margin 29.3%. Margins are IMPROVING. Strong pricing power with stable gross margins suggests the improvement is from operating leverage — sustainable.
Financial Health
Earnings Quality
WEAKCash flow only covers 0.3x of net income — earnings quality is WEAK. Profit may not be converting to cash. Check receivables and inventory.
Debt Sustainability
COMFORTABLEInterest covered 30.2x — very comfortable. Debt service is not a concern.
Free Cash Flow
STRONGFCF margin at 0.9% — barely positive. Limited cash after capex.
Peer Comparison
Key Watchpoints
Breaks above ₹5008 (+5%)
Trend reversal confirmation
Breaks below ₹4531 (-5%)
Further downside risk
Defense sector entering leadership
Sector rotation signal
Detected Patterns
Risk Flags
OCF is only 0.3x net income. Profit not converting to cash — aggressive accounting possible.
Working capital is consuming significant cash. Operational efficiency declining.
High revenue multiple. Market pricing in significant growth or margins expansion.
Profits are from core operations, not one-offs. High quality.
Collection cycle changing. Collection improving — positive for cash flow.
⚠️ 1 critical + 2 warning flags. Exercise caution.
Data Quality
News Correlation
50 articles scanned for fundamental themes