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**Data Patterns (India) Announces Increased Dividend, But Cash Flow Concerns Remain**

**Chennai, [Date – Today’s Date]** – Data Patterns (India) Limited (NSE:DATAPATTNS), a leading provider of defense and aerospace electronics solutions in India, has announced a dividend of ₹7.90 per share, payable on September 7th. This marks an increase from the previous year’s dividend.

While the dividend increase is positive, the resulting yield of 0.3% remains below the industry average. The announcement comes amidst a significant 52% increase in the company’s stock price over the last three months.

Analysts note that while Data Patterns (India) boasts strong earnings per share growth (projected at 98.9% for the next year) and a comfortable payout ratio, concerns remain regarding the company’s cash flow. Although the dividend has shown strong growth since 2022, potential investors should be aware of the short history of the dividend payments.

Simply Wall Street, in its analysis, highlights that Data Patterns (India) has seen its EPS rise at 54% per annum in the last five years. “While it’s always good to see the dividend being raised, we don’t think Data Patterns (India)’s payments are rock solid,” noted the report. “While the low payout ratio is a redeeming feature, this is offset by the minimal cash to cover the payments. We would be a touch cautious of relying on this stock primarily for the dividend income.”

Investors are advised to consider these factors, alongside broader market trends and individual investment goals, when evaluating Data Patterns (India). The company’s strong earnings growth and reinvestment strategy present a bright future.

**Note:** This article is based on analysis provided by Simply Wall Street and should not be considered financial advice. Investors are encouraged to conduct their own due diligence.

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