⚠ 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
Last Updated Time : 05 Nov 25, 7:43 am
Back to Fundamental ListFundamental Rating: 3.4
📊 Financial Overview
- Profitability: PAT declined QoQ from ₹33.9 Cr to ₹29.6 Cr, with a negative profit variation of -11.1%.
- Return Metrics: ROE at 6.63% and ROCE at 10.2% are modest, indicating scope for operational improvement.
- Valuation: P/E of 109 is significantly higher than the industry average of 29.4, suggesting steep overvaluation.
- P/B Ratio: With a book value of ₹60.7 and price of ₹448, the P/B ratio is ~7.38, reflecting a premium valuation.
- PEG Ratio: 991 indicates a major disconnect between price and earnings growth.
- Debt Profile: Debt-to-equity ratio of 0.01 shows excellent financial discipline and minimal leverage.
- Momentum: RSI at 49.5 and MACD at 1.10 suggest neutral sentiment with mild bullish undertones.
🏢 Business Model & Competitive Edge
- LatentView Analytics is a niche player in data analytics, offering services in data engineering, business intelligence, and predictive modeling.
- Its focus on digital transformation and data-driven decision-making aligns with global enterprise trends.
- Scalable delivery model and strong client relationships support long-term growth potential.
💡 Entry Zone Recommendation
- Current price is near both DMA 50 (₹422) and DMA 200 (₹424), indicating consolidation.
- Suggested Entry Zone: ₹410–₹430 for accumulation on dips.
- Long-term holding is viable if earnings growth accelerates and valuation normalizes.
✅ Positive
- Debt-free balance sheet enhances financial flexibility.
- FII and DII holdings increased slightly, indicating growing institutional interest.
- Strong positioning in the fast-growing data analytics sector.
⚠️ Limitation
- Extremely high P/E and PEG ratios suggest valuation concerns.
- ROE and ROCE are below industry benchmarks.
- QoQ PAT decline may reflect margin pressure or client-side delays.
📉 Company Negative News
- Stock has corrected ~14% from its 52-week high of ₹520.
- Volume below weekly average may indicate subdued investor interest.
📈 Company Positive News
- Continued expansion in digital analytics and AI-driven services.
- Stable technical indicators with potential for upward breakout.
🏭 Industry
- Analytics and digital transformation are high-growth sectors driven by enterprise data adoption and AI integration.
- Industry P/E of 29.4 supports moderate valuation for scalable tech players.
🧾 Conclusion
- LatentView is a promising analytics firm with strong sectoral tailwinds and a clean balance sheet.
- Entry near ₹410–₹430 offers a reasonable long-term opportunity, though current valuation is stretched.
- Monitor earnings momentum and margin trends for sustained performance.
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