Data Patterns at new high

Data Patterns has been buzzing loud for the past couple of days, so much so that even the stock exchanges sought clarification from the company regarding the unusual rise in stock price. The company did revery saying that there was no new development in the company which could warrant this price.

Despite this, the stock price continues to rise. Today, it opened less than 0.5% higher at Rs.2800 but soon jumped up 9% to hit a new 52-week high at Rs.3036.

The buzz around the stock has been there for the past two weeks or so, driven by the fact that it is in the defence and aerospace sector and it works with HAL, BEL as well as Defence Research and Development Organisation (DRDO) and Indian Space Research Organisation (ISRO).

The Govt recently eased Foreign Direct Investment (FDI) norms in the space sector by allowing 100% overseas investment in making components for satellites, as part of efforts to attract overseas players and private companies into the segment. Obviously the market is looking at major FDI flowing into the company over the next few weeks and that’s the reason for this new found love for the stock. The company has, over the year, strategically positioned itself from being at component/sub system level to whole system level.