Systematix initiates Indian defence electronic cos with "buy"

Data Patterns (India)

Today 10:19

** Systematix initiates Indian defence electronics cos Astra Microwave ASTM.NS and Data Patterns DATP.NS with "Buy" and PT of 2,400 rupees and 5,100 rupees respectively
** Brokerage cites rising global and Indian defence spending driven by multiple conflicts
** Says both cos lead India's defence electronics space  with strong IP and R&D
** Says ASTM at "inflection point" of structural transformation
** Brokerage expects ~90 billion rupees in order inflows for ASTM over FY27E-30E, for airborne radar, missiles, software-defined radios 
** Limited competition should sustain gross margins; operating leverage to drive ASTM's EBITDA margins  - brokerage
** Systematix says DATP's focus on indigenous design to help it capitalise on the fast-growing defence market
** Sees DATP's revenue growing at CAGR of 29%, and PAT growing at CAGR of 32% over FY26-29E
** YTD, ASTM up 52.8% and DATP up 46.3%

 (Reporting by Mridula Kumar in Bengaluru)
 ((Mridula.Kumar@thomsonreuters.com;))