LATENTVIEW - Investment Analysis: Buy Signal or Bull Trap?
Back to ListInvestment Rating: 3.2
| Stock Code | LATENTVIEW | Market Cap | 9,755 Cr. | Current Price | 471 ₹ | High / Low | 518 ₹ |
| Stock P/E | 104 | Book Value | 60.6 ₹ | Dividend Yield | 0.00 % | ROCE | 10.2 % |
| ROE | 6.63 % | Face Value | 1.00 ₹ | DMA 50 | 443 ₹ | DMA 200 | 439 ₹ |
| Chg in FII Hold | 1.55 % | Chg in DII Hold | 0.80 % | PAT Qtr | 31.0 Cr. | PAT Prev Qtr | 29.6 Cr. |
| RSI | 63.9 | MACD | -6.26 | Volume | 26,57,384 | Avg Vol 1Wk | 36,43,289 |
| Low price | 340 ₹ | High price | 518 ₹ | PEG Ratio | 944 | Debt to equity | 0.01 |
| 52w Index | 73.6 % | Qtr Profit Var | 40.7 % | EPS | 4.54 ₹ | Industry PE | 25.1 |
📊 Analysis: LatentView Analytics trades at extremely high valuations (P/E 104 vs Industry P/E 25.1), making it expensive relative to peers. ROE at 6.63% and ROCE at 10.2% are modest, reflecting average capital efficiency. The PEG ratio of 944 suggests growth is priced at an unsustainable premium. Dividend yield is 0%, offering no income support. On the positive side, the company has negligible debt (Debt-to-equity 0.01), ensuring financial stability. Technically, the stock is trading above its 50 DMA (443 ₹) and 200 DMA (439 ₹), showing short-term strength. RSI at 63.9 indicates near overbought conditions, while MACD (-6.26) signals mild bearishness. Quarterly PAT growth (+40.7%) highlights earnings momentum, but valuations remain a concern.
💰 Ideal Entry Price Zone: Between 420 ₹ – 450 ₹ (closer to support levels and fairer valuation zone). Accumulation should be cautious given stretched valuations.
📈 Exit Strategy / Holding Period: If already holding, maintain a medium-term horizon (2–3 years). Consider partial profit booking if price revisits 500–515 ₹ levels. Long-term investors should monitor earnings growth and valuation sustainability before extending holding beyond 3 years.
✅ Positive
- Negligible debt (Debt-to-equity 0.01) ensures financial stability.
- Quarterly PAT growth (+40.7%) highlights strong earnings momentum.
- FII holdings increased (+1.55%) and DII holdings increased (+0.80%), reflecting institutional confidence.
- Strong 52-week performance (+73.6%).
⚠️ Limitation
- Extremely high valuation (P/E 104 vs Industry 25.1).
- PEG ratio of 944 indicates growth is priced unsustainably.
- ROE (6.63%) and ROCE (10.2%) are modest compared to peers.
- Dividend yield at 0% offers no income support.
📉 Company Negative News
- MACD (-6.26) signals bearish momentum.
- Stock trading near overbought RSI levels (63.9).
📈 Company Positive News
- Quarterly PAT improved from 29.6 Cr. to 31.0 Cr.
- Institutional investors increased holdings, signaling confidence.
- Strong trading volumes indicate investor interest.
🏭 Industry
- Analytics and IT services sector benefits from rising demand for data-driven solutions.
- Industry PE at 25.1, showing LatentView trades at a significant premium.
- Long-term demand supported by digital transformation and AI adoption.
🔎 Conclusion
LatentView Analytics is a moderate candidate for long-term investment, supported by low debt and strong earnings momentum. However, extremely high valuations, modest ROE/ROCE, and unsustainable PEG ratio raise caution. Ideal entry is around 420–450 ₹. Existing investors should hold for 2–3 years, booking profits near 500–515 ₹ levels, while monitoring earnings growth and valuation sustainability.