LATENTVIEW - Fundamental Analysis: Financial Health & Valuation

Last Updated Time : 19 Sept 25, 2:16 pm

Fundamental Rating: 3.9

📊 Core Financials & Profitability

Earnings Recovery: PAT rebounded to ₹33.9 Cr from a loss of ₹0.57 Cr in the previous quarter, showing a 21.7% profit variation. EPS of ₹4.30 is modest for a ₹427 stock.

Return Metrics

ROE: 6.63% and ROCE: 10.2% — below industry averages, indicating room for operational improvement.

Debt Profile: Debt-to-equity at 0.02 — virtually debt-free, a major strength.

Dividend Yield: 0.00% — no payouts, consistent with reinvestment strategy.

💸 Valuation Indicators

Metric Value Insight

P/E Ratio 99.6 Extremely high vs. industry PE of 30.0 — richly valued.

P/B Ratio ~7.39 Elevated relative to book value ₹57.8.

PEG Ratio 905 Highly inflated — suggests valuation far exceeds earnings growth.

🔍 Conclusion: LatentView is trading at a steep premium. While the company is debt-free and profitable, its valuation metrics signal caution for new investors.

📈 Business Model & Competitive Edge

Core Operations: LatentView Analytics provides data analytics, consulting, and AI-driven insights across industries like BFSI, retail, and technology.

Strategic Strengths

34.2% quarterly revenue growth and 23.5% profit margin

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Strong positioning in digital transformation and data modernization.

Institutional sentiment is weakening: FII and DII holdings declined

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Growth Outlook

Analysts forecast 2025 targets between ₹441.5 and ₹453, with stop-loss levels around ₹414–₹423

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3-month return: +11.66%; 1-year return: −18.13% — volatile but recovering

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📉 Technicals & Entry Zone

RSI: 58.0 — neutral, offering buying comfort.

MACD: 1.59 — mild bullish signal.

DMA Levels: Price hovering near both 50-DMA and 200-DMA — consolidation zone.

📌 Suggested Entry Zone: ₹415–₹425 — near DMA levels and technical support

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🕰️ Long-Term Holding Guidance

Hold if Invested: Debt-free status and sector relevance support long-term potential.

Buy on Dips: Prefer entry near ₹420, especially if RSI dips below 55.

Monitor: Margin expansion, client retention, and institutional sentiment.

You can explore LatentView’s technical targets and price action analysis

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or Trendlyne’s valuation and analyst sentiment

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for deeper insights. Let me know if you'd like a peer comparison with eClerx or Happiest Minds next.

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stockpricearchive.com

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www.livemint.com

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trendlyne.com

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