⚠ Disclaimer: This report is generated using AI tools and is for informational purposes only. It does not constitute investment advice. Please consult a registered financial advisor before making any investment decisions.
LATENTVIEW - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 3.7
| Stock Code | LATENTVIEW | Market Cap | 5,863 Cr. | Current Price | 284 ₹ | High / Low | 518 ₹ |
| Stock P/E | 62.4 | Book Value | 60.6 ₹ | Dividend Yield | 0.00 % | ROCE | 10.2 % |
| ROE | 6.63 % | Face Value | 1.00 ₹ | DMA 50 | 367 ₹ | DMA 200 | 415 ₹ |
| Chg in FII Hold | 1.55 % | Chg in DII Hold | 0.80 % | PAT Qtr | 31.0 Cr. | PAT Prev Qtr | 29.6 Cr. |
| RSI | 24.2 | MACD | -31.0 | Volume | 17,60,457 | Avg Vol 1Wk | 11,43,187 |
| Low price | 274 ₹ | High price | 518 ₹ | PEG Ratio | 567 | Debt to equity | 0.01 |
| 52w Index | 4.10 % | Qtr Profit Var | 40.7 % | EPS | 4.54 ₹ | Industry PE | 20.9 |
📊 Core Financials
- Revenue & Profitability: PAT rose slightly (₹29.6 Cr → ₹31.0 Cr), showing growth, though EPS at ₹4.54 reflects modest earnings strength.
- Margins: ROCE at 10.2% and ROE at 6.63% highlight weak efficiency and profitability compared to peers.
- Debt: Debt-to-equity ratio of 0.01 indicates an almost debt-free balance sheet.
- Cash Flow: Operating performance is stable, but profitability remains modest.
💹 Valuation Indicators
- P/E: 62.4, far above industry average (20.9), suggesting heavy premium valuation.
- P/B: 4.68 (₹284 / ₹60.6), reflecting high market expectations.
- PEG Ratio: 567, distorted due to earnings slowdown, making valuation unattractive.
- Intrinsic Value: Current price ₹284 is above fair value; better entry closer to ₹260–275.
🏢 Business Model & Competitive Advantage
- Strong presence in data analytics and consulting services.
- Global clientele provides diversified revenue streams.
- Near debt-free balance sheet enhances resilience, though profitability ratios remain weak.
📈 Entry Zone & Long-Term Guidance
- Entry Zone: ₹260–275 range offers attractive entry.
- Long-Term Holding: Suitable for investors seeking exposure to analytics growth, though valuation premium and weak return metrics warrant caution.
✅ Positive
- Sequential PAT growth (+4.7%).
- Debt-to-equity ratio of 0.01 ensures financial stability.
- FII holdings increased by 1.55% and DII holdings by 0.80%, showing investor confidence.
⚠️ Limitation
- ROE (6.63%) and ROCE (10.2%) are weak compared to industry leaders.
- High P/E (62.4) compared to industry average (20.9).
- PEG ratio (567) suggests distorted valuation due to earnings slowdown.
- Stock trading below DMA 50 (₹367) and DMA 200 (₹415), showing weak momentum.
📉 Company Negative News
- Technical indicators (RSI 24.2, MACD -31.0) suggest bearish momentum.
- 52-week index gain of only 4.1% indicates underperformance.
📈 Company Positive News
- Sequential PAT growth from ₹29.6 Cr to ₹31.0 Cr.
- FII holdings increased by 1.55%, reflecting strong foreign investor support.
- DII holdings increased by 0.80%, showing domestic institutional confidence.
🏭 Industry
- Industry P/E at 20.9, much lower than company’s P/E, indicating premium valuation.
- Analytics and consulting sector remains resilient with strong demand for digital transformation services.
🔎 Conclusion
- LatentView demonstrates modest fundamentals with strong sector positioning but weak profitability ratios.
- Valuation is heavily premium compared to industry, making entry less attractive at current levels.
- Entry zone between ₹260–275 is favorable for long-term investors.
- Overall, a fundamentally stable company with analytics growth prospects, though short-term momentum weakness and high valuation warrant caution.