IMO, this is the most important slide as I see Data Patterns to be a long term sectoral play.
Though the valuation is a bit expensive, the growth rate is sustainable with good order book visibility. Furthermore, the export potential is huge going forward. Currently only 10% of revenue is from exports.
Positives to look out for:
- More value added products with increased sophistication
- Increased client base
Sectoral tailwinds:
- Commercialisation effort of Indian defense – govt is quite keen to improve the export fraction
- Make in India – Particularly for defense, India wants to be self reliant
(haven’t listened to concall yet)
Disc: Invested 5% of my portfolio
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