LATENTVIEW - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 3.4
| Stock Code | LATENTVIEW | Market Cap | 8,666 Cr. | Current Price | 418 ₹ | High / Low | 518 ₹ |
| Stock P/E | 102 | Book Value | 60.7 ₹ | Dividend Yield | 0.00 % | ROCE | 10.2 % |
| ROE | 6.63 % | Face Value | 1.00 ₹ | DMA 50 | 441 ₹ | DMA 200 | 439 ₹ |
| Chg in FII Hold | 1.55 % | Chg in DII Hold | 0.80 % | PAT Qtr | 29.6 Cr. | PAT Prev Qtr | 33.9 Cr. |
| RSI | 44.1 | MACD | -15.9 | Volume | 3,59,901 | Avg Vol 1Wk | 2,05,724 |
| Low price | 340 ₹ | High price | 518 ₹ | PEG Ratio | 927 | Debt to equity | 0.01 |
| 52w Index | 43.9 % | Qtr Profit Var | -11.1 % | EPS | 4.11 ₹ | Industry PE | 23.9 |
📊 Financials: LatentView Analytics shows weak fundamentals with ROCE at 10.2% and ROE at 6.63%, reflecting low capital efficiency. Debt-to-equity ratio of 0.01 indicates negligible leverage, ensuring financial stability. Quarterly PAT declined from 33.9 Cr. to 29.6 Cr. (-11.1%), highlighting earnings pressure. Cash flows remain steady, supported by analytics demand, but profitability growth is limited.
💹 Valuation: Current P/E of 102 is extremely high compared to industry average (23.9), suggesting severe overvaluation. P/B ratio (~6.9) is elevated, while PEG ratio of 927 indicates very weak growth-adjusted valuation. Intrinsic value analysis suggests entry opportunities around 360–380 ₹, offering margin of safety compared to current price (418 ₹).
🏢 Business Model & Advantage: LatentView operates in data analytics and consulting, serving industries such as BFSI, retail, and technology. Its competitive advantage lies in niche expertise, global client base, and focus on digital transformation. Market cap of 8,666 Cr. positions it as a mid-cap IT services player with growth potential but facing valuation challenges.
📈 Entry Zone & Holding Guidance: Attractive entry zone: 360–380 ₹. Long-term investors should be cautious due to extreme valuation and weak return metrics. Technical indicators (RSI 44.1, MACD negative) show neutral-to-weak momentum, suggesting near-term weakness.
Positive
- Debt-to-equity ratio of 0.01 ensures strong balance sheet.
- Strong institutional inflows (FII +1.55%, DII +0.80%) reflect investor confidence.
- Established presence in analytics and consulting with global clientele.
- Resilient demand for digital transformation services.
Limitation
- ROCE (10.2%) and ROE (6.63%) reflect weak efficiency.
- Extremely high P/E (102) compared to industry average (23.9) suggests overvaluation.
- PEG ratio (927) highlights poor growth-adjusted valuation.
- Quarterly PAT decline (-11.1%) indicates earnings pressure.
- Dividend yield of 0.00% limits income appeal.
Company Negative News
- Quarterly PAT contraction from 33.9 Cr. to 29.6 Cr. highlights margin challenges.
- Weak technical indicators (MACD -15.9) show bearish momentum.
Company Positive News
- Institutional inflows (FII +1.55%, DII +0.80%) show strong investor support.
- Strong positioning in analytics and consulting services.
Industry
- Industry P/E at 23.9 indicates moderate valuation levels.
- Analytics and consulting sector benefits from digital transformation demand.
- Companies with niche expertise and global client base hold competitive advantage.
Conclusion
⚖️ LatentView Analytics demonstrates weak fundamentals with low return metrics and declining profitability. Despite strong institutional support and niche expertise, extreme valuation and poor PEG ratio temper the outlook. Entry around 360–380 ₹ is recommended for cautious long-term investors, with close monitoring of earnings growth and sector demand.