LATENTVIEW - Fundamental Analysis: Financial Health & Valuation

Last Updated Time : 20 Dec 25, 11:15 pm

Fundamental Rating: 2.9

📊 Core Financials

• Quarterly PAT declined from ₹33.9 Cr. to ₹29.6 Cr. (-11.1% variation, showing earnings pressure).
• ROCE at 10.2% and ROE at 6.63% indicate weak efficiency compared to industry peers.
• Debt-to-equity ratio at 0.01 highlights negligible leverage and strong balance sheet health.
• EPS at ₹4.11 is modest, limiting profitability strength.

💹 Valuation Indicators

• P/E Ratio: 118 (extremely high vs. industry PE of 26.4, suggesting severe overvaluation).
• P/B Ratio: ~7.9 (CMP ₹482 / Book Value ₹60.7).
• PEG Ratio: 1,069 (extremely high, highlighting poor valuation relative to growth).
• Intrinsic Value: CMP appears far above fair value, no margin of safety.

🏢 Business Model & Competitive Advantage

• LatentView Analytics operates in data analytics, consulting, and digital transformation services.
• Competitive advantage lies in niche expertise in analytics and AI-driven insights.
• Global client base provides diversification, but scale remains limited compared to larger IT peers.

📈 Entry Zone & Long-Term Guidance

• Entry Zone: Attractive only near ₹360–₹400 (closer to DMA 200 at ₹440 and 52-week low ₹340).
• Long-Term Holding: Suitable for investors seeking niche analytics exposure, but valuations are extremely stretched and earnings momentum is weak.

✅ Positive

• Debt-to-equity ratio at 0.01 ensures strong balance sheet stability.
• FII (+0.07%) and DII (+0.15%) holdings increased slightly, showing investor confidence.
• Strong positioning in analytics and digital transformation niche.

⚠️ Limitation

• Extremely high P/E (118) compared to industry average (26.4).
• PEG ratio at 1,069 indicates severe overvaluation relative to growth.
• ROE at 6.63% and ROCE at 10.2% are weak.
• EPS at ₹4.11 is modest, limiting profitability strength.

📉 Company Negative News

• Quarterly PAT declined (-11.1%), showing earnings weakness.
• Stock trading close to 52-week high, limiting upside potential.

📈 Company Positive News

• Institutional investors increased holdings slightly, reflecting cautious confidence.
• Strong demand outlook for analytics and AI-driven services globally.

🏭 Industry

• Analytics and IT services industry benefits from digital transformation and AI adoption.
• Industry PE at 26.4, showing LatentView trades at a massive premium to peers.

🔎 Conclusion

LatentView Analytics demonstrates niche expertise in analytics and digital transformation, supported by a debt-free balance sheet. However, valuations are extremely stretched with a P/E of 118 and PEG ratio of 1,069, while profitability metrics remain weak. Entry is advisable only near ₹360–₹400 for better risk-reward. Long-term investors may benefit from analytics sector growth, though cautious accumulation is recommended due to overvaluation and declining earnings momentum.