Data Patterns shares correct 7% post strong listing; what should investors do now?

The shares of Data Patterns corrected 7 per cent to Rs 805.90 per share in the BSE intraday trade on Friday, December 24. The shares had made a stellar debut on the NSE and the BSE on Friday. Data Patterns shares were listed at Rs 864 per share on the BSE, a jump of Rs 279 per share or 47.69 % on its issue price of Rs 585. On the NSE, shares debuted at Rs 856.05, a gain of 271.05 or 46.33% on Friday.

At around 10.30 am, the shares of Data Patterns were trading with a 6.72 per cent or Rs 58.10 discount to that of the listing price of Rs 864 per share on the BSE. However, shares of defence service provider remained 37 per cent higher than that of the issue price of Rs 585 per share.  

Data Patterns is a vertically integrated defence and aerospace electronics solutions provider that caters to requirements across space, air, land and sea. Data Patterns IPO was subscribed a whopping 119.62 times on the final day.

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As the shares have shown a good surge and were in line with the expectation of the market experts, what should investors do no?  

Potential to generate 15-20% returns from current levels: Harsh Patidar, Research Analyst, CapitalVia Global Research

Data Pattern opened about 47% from the issue price as the street has been anticipating such an impressive listing gain, said Harsh Patidar, Research Analyst at CapitalVia Global Research.

"I believe Data pattern has potential to generate 15-20% returns from this price as well in the next few quarters. I expect the stock to cross 1100 levels in the next few quarters. Investors those having intent to hold the stock for long-term should try to accumulate stock in any healthy dip of around Rs 725-755," said Harsh Patidar

Stock will be a wealth generator in long run: Santosh Meena, Head of Research, Swastika Investmart Ltd

Santosh Meena, Head of Research, Swastika Investmart Ltd, said Data Pattern's IPO bumper response from investors which saw the issue getting subscribed 120 times demonstrates that aerospace and defense are highly sought-after sectors currently.  

"This led to the IPO debuting at Rs 856, a 46% premium to the issue price of Rs 585. In the long run, the stock will be a wealth generator in the next 3-5 years, while short-term investors should keep a stop loss of Rs 790 on a closing basis. The company can grow rapidly and exponentially by taking advantage of the government's Make In India initiative in the near future, "said Santosh Meena.  

Short-term investors can keep a stop loss of Rs 775 and hold: Anil Singhvi

Earlier, Zee Business Managing Editor Anil Singhvi has hit the bull's eye with his listing prediction. "Expected to list in 850-900 range against issue price of Rs 585," he had said.  
Singhvi had suggested Short-term investors keep a stop loss of Rs 775 and hold the shares.  

The company aims to use the proceeds from the fresh issue for repayment of the debt, funding its working capital and upgradation and expansion of its existing facilities besides general corporate purposes.

Founded by Srinivasa Gopalan Rangarajan and Rekha Murthy Rangarajan, the company caters to the entire spectrum of defence and aerospace platforms –space, air, land and sea and has end-to-end capabilities to build and deliver complete systems, with their design and manufacturing capabilities being completed in-house.