LATENTVIEW - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 3.8
| Stock Code | LATENTVIEW | Market Cap | 6,735 Cr. | Current Price | 326 ₹ | High / Low | 518 ₹ |
| Stock P/E | 52.0 | Book Value | 64.0 ₹ | Dividend Yield | 0.00 % | ROCE | 13.5 % |
| ROE | 10.3 % | Face Value | 1.00 ₹ | DMA 50 | 313 ₹ | DMA 200 | 375 ₹ |
| Chg in FII Hold | -0.57 % | Chg in DII Hold | -0.07 % | PAT Qtr | 35.0 Cr. | PAT Prev Qtr | 31.0 Cr. |
| RSI | 61.0 | MACD | 5.45 | Volume | 13,09,800 | Avg Vol 1Wk | 26,93,344 |
| Low price | 248 ₹ | High price | 518 ₹ | PEG Ratio | 14.0 | Debt to equity | 0.02 |
| 52w Index | 29.0 % | Qtr Profit Var | 6,233 % | EPS | 6.26 ₹ | Industry PE | 20.4 |
📊 Financials: Latent View Analytics (LATENTVIEW) shows moderate fundamentals with ROCE at 13.5% and ROE at 10.3%, reflecting average capital efficiency. Debt-to-equity ratio of 0.02 indicates negligible leverage. EPS stands at ₹6.26, supported by PAT growth from ₹31.0 Cr. to ₹35.0 Cr. Quarterly profit variation (+6,233%) highlights sharp earnings momentum, though sustainability needs monitoring. Dividend yield at 0.00% offers no direct shareholder returns.
💹 Valuation: Current P/E of 52.0 is significantly higher than the industry average of 20.4, suggesting overvaluation. P/B ratio (~5.1, 326/64.0) reflects premium pricing relative to book value. PEG ratio of 14.0 indicates growth is severely overpriced. Intrinsic value analysis suggests the stock is richly valued, with minimal margin of safety.
🏢 Business Model & Health: Latent View operates in data analytics and consulting, with competitive advantage in digital transformation, AI-driven insights, and global client servicing. Low debt and consistent profitability support sustainability, but weak return ratios and stretched valuations limit attractiveness. Institutional participation is negative, with FII holdings declining (-0.57%) and DII holdings also declining (-0.07%).
📈 Entry Zone: Technical indicators (RSI 61.0, MACD 5.45, DMA 50 at ₹313, DMA 200 at ₹375) suggest bullish momentum but valuations remain stretched. Accumulation near ₹300–₹320 could be favorable for cautious investors. Long-term holding requires confidence in analytics sector growth and valuation normalization.
Positive
- ✅ ROCE (13.5%) and ROE (10.3%) reflect moderate capital efficiency.
- ✅ Debt-to-equity ratio (0.02) ensures financial stability.
- ✅ PAT growth (+6,233%) indicates strong earnings momentum.
- ✅ Strong positioning in analytics and digital transformation sector.
Limitation
- ⚠️ Very high P/E (52.0) compared to industry average (20.4) suggests overvaluation.
- ⚠️ PEG ratio (14.0) indicates growth is severely overpriced.
- ⚠️ P/B ratio (~5.1) reflects premium pricing.
- ⚠️ Dividend yield (0.00%) offers no shareholder returns.
Company Negative News
- 📉 Decline in both FII (-0.57%) and DII (-0.07%) holdings reflects reduced institutional confidence.
- 📉 Valuations remain stretched compared to intrinsic value.
Company Positive News
- 📈 PAT growth from ₹31.0 Cr. to ₹35.0 Cr. shows operational resilience.
- 📈 Debt-free balance sheet ensures strong financial health.
Industry
- 🌐 Industry P/E at 20.4 indicates moderate sector valuations.
- 🌐 Analytics and consulting sector benefits from rising demand for AI-driven insights and digital adoption.
Conclusion
🔎 Latent View Analytics is fundamentally stable with strong earnings growth and negligible debt, but valuations are extremely stretched with high P/E and PEG ratios. Entry near ₹300–₹320 offers a cautious risk-reward opportunity. Long-term holding is justified only for investors confident in analytics sector growth, while closely monitoring valuation risks and institutional sentiment.