Latent View Analytics Gets 'Add' Rating As ICICI Securities Initiates Coverage

NDTV Profit’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer NDTV Profit’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.

ICICI Securities Report

Latent View Analytics Ltd., a pureplay data analytics company, has built a strong moat for itself with:

1. a large share of managed services work (~70%) that garner high annual renewal rates (~85–90%);

2. premium positioning vs IT services, given the company solves unstructured problems;

3. longstanding marquee client relationships (~40 Fortune 500 clients) – demonstrated healthy track record of mining top clients; and

4. having predominantly worked with technology and digital-native companies, providing it with early opportunities in gaining expertise in new technologies.

Latent View has transformed itself from delivering steady revenue growth and profitability to making bolder investments in high-growth areas to achieve its next milestone of ~$200 million in revenue by FY28.

We model 18%/20% USD revenue/PAT CAGRs over FY25–28. We assign a 38x target multiple (1.5SD below avg P/E) on FY27 EPS of Rs 12 to arrive at a target price of Rs 450.

We initiate coverage with an Add rating.

Key downside risks:

1. High client concentration – top 5 clients account for 62% of revenue.

2. High vertical concentration – 68% exposure to technology vertical.

3. Higher exposure to developed market – North America contributes ~90% to revenue.

4. Acquisition integration risks.

Click on the attachment to read the full report:

DISCLAIMER

This report is authored by an external party. NDTV Profit does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of NDTV Profit.

Users have no license to copy, modify, or distribute the content without permission of the Original Owner.