1. At a Glance
India’s first listed pure-play analytics company, Latent View, has grown its revenue to ₹848 Cr in FY25—but its valuations are fatter than its margins. With a P/E of 55, zero dividend, and “Other Income” adding glamour to net profit, is this stock truly insightful—or just Excel with lipstick?
2. Introduction with Hook
Imagine if ChatGPT had a cousin in Chennai who made dashboards for Fortune 500s and also dabbled in acquisitions and offshore tax planning. That’s Latent View. It predicts what you’ll buy next Tuesday, but forgot to predict its own ROE stagnation.
- FY25 PAT: ₹173 Cr
- EPS: ₹8.44
- Other Income (FY25): ₹69 Cr (a full 40% of PBT)
Is it a tech disruptor or just a glorified treasury management firm?
3. Business Model (WTF Do They Even Do?)
Latent View is in the data analytics consulting game. Not IT services. Not SaaS. Not BPO.
Key Offerings:
- Data & Analytics Consulting
- Advanced Predictive Analytics
- Data Engineering & Cloud Migration
- Digital Solutions for BFSI, CPG, Tech, Retail
Revenue streams are mostly project-based. No annuity. No products. It’s pure services in analytics-driven transformation—think dashboards, modeling, forecasting, and segmentation.
Clients? Think global tech, BFSI & CPG names, mostly US-led.
4. Financials Overview
FY | Revenue (₹ Cr) | PAT (₹ Cr) | EPS (₹) | OPM % |
---|---|---|---|---|
FY21 | 306 | 91 | 112.43 | 34% |
FY22 | 408 | 130 | 6.46 | 30% |
FY23 | 539 | 155 | 7.59 | 27% |
FY24 | 641 | 159 | 7.70 | 21% |
FY25 | 848 | 173 | 8.44 | 23% |
Observations:
- OPM has fallen from 34% to 23% over 5 years
- EPS CAGR (3Y) = 14%
- Sales CAGR (5Y) = 22%
- Other income props up bottom line regularly
5. Valuation
CMP: ₹440
EPS (FY25): ₹8.44
P/E: 54.8
Book Value: ₹72.6 → P/B = 6.06x
EduInvesting Fair Value Range:
- Pure OPM-Based (25x P/E): ₹210
- Tech-Rerated Case (35x): ₹295
- Fantasy AI Valuation (50x+): ₹420–₹450
Conclusion: This isn’t SaaS. It’s a consulting firm wearing AI glasses. Valuation is too optimistic.
6. What’s Cooking – News, Triggers, Drama
- Decision Point Acquisition: 100% acquired in Mar 2024 for $39.1M. Boost to consumer analytics biz
- Sustainability Report FY24: First ESG deck released—because it’s 2025
- Resignation of Chief Growth Officer (Aug 2024)—Succession or signal?
- Upcoming Q1 FY26 results: July 21st. Last quarter showed 13% profit growth
Other Income continues to be juicy: ₹69 Cr in FY25 alone, mostly from treasury investments.
7. Balance Sheet
Item | FY25 (₹ Cr) |
---|---|
Equity Capital | 21 |
Reserves | 1,479 |
Borrowings | 29 |
Total Liabilities | 1,789 |
Fixed Assets | 401 |
Investments | 848 |
Other Assets (Cash, Receivables) | 531 |
Callouts:
- Debt negligible
- Massive investment book = ₹848 Cr (yes, 100% of revenue parked in financial instruments)
- Capital-efficient, but not sweat-driven growth—more like “parked in mutual funds” growth
8. Cash Flow – Sab Number Game Hai
FY | CFO | CFI | CFF | Net Flow |
---|---|---|---|---|
FY23 | ₹97 Cr | -₹277 Cr | -₹4 Cr | ₹111 Cr |
FY24 | ₹115 Cr | -₹3 Cr | -₹1 Cr | ₹111 Cr |
FY25 | ₹130 Cr | -₹221 Cr | -₹5 Cr | -₹95 Cr |
Key Insight:
- Strong operating cash flow
- But most cash is reinvested, not returned
- Dividend = still zero
- Somewhat of a fixed deposit startup at this point
9. Ratios – Sexy or Stressy?
Ratio | FY25 |
---|---|
ROCE | 15.2% |
ROE | 11.5% |
Debtor Days | 80 |
Working Capital Days | 104 |
P/E | 54.8 |
P/B | 6.06 |
Verdict:
- Decent return metrics, but nowhere near justifying 55x earnings
- Debtor days inching up = slower cash cycles
- High WC days = operational bloat?
10. P&L Breakdown – Show Me the Money
FY25 (₹ Cr) | Amount |
---|---|
Sales | 848 |
EBITDA | 196 |
Other Income | 69 |
Interest | 7 |
Depreciation | 29 |
PBT | 229 |
Tax | 56 |
Net Profit | 173 |
Operating EBITDA = 23%. If you remove “Other Income”, real profitability is weaker than advertised.
11. Peer Comparison
Company | CMP | P/E | ROCE | Sales (Cr) | PAT (Cr) | OPM % |
---|---|---|---|---|---|---|
TCS | ₹3,190 | 23.4 | 64.6% | 2,56,148 | 49,273 | 26.4% |
Infosys | ₹1,586 | 24.9 | 37.5% | 1,62,990 | 26,516 | 24.1% |
Persistent | ₹5,548 | 63.9 | 30.4% | 11,939 | 1,358 | 17.2% |
LTIMindtree | ₹5,124 | 32.2 | 27.6% | 38,706 | 4,719 | 16.9% |
Latent View | ₹440 | 54.8 | 15.2% | 848 | 173 | 23.1% |
Summary:
- ROCE is half that of large-cap IT
- P/E is double TCS, with less than 1/300th of its size
- Operating model = analytics consulting, not IP-led
12. Miscellaneous – Shareholding, Promoters
Category | Jun 2025 |
---|---|
Promoters | 65.20% |
FIIs | 2.11% |
DIIs | 3.25% |
Public | 29.44% |
Notables:
- Promoter holding stable over 2 years
- FII holding slowly rising from 1% → 2%
- Over 2.35 lakh retail shareholders
- No pledges, no dilution—clean cap table
13. EduInvesting Verdict™
Latent View is India’s best bet on pure-play analytics. It has execution strength, blue-chip clients, no debt, and strong cash flow. But…
…it also has a valuation multiple that assumes it’s Palantir, a heavy reliance on “Other Income”, and declining margins.
A great company? Maybe.
A great stock? Only if the price cools off or productisation begins.
Fair Value Range: ₹210–₹295 (adjusted for consulting business model + P/E derating risk)
Metadata
– Written by EduInvesting Research Team | July 19, 2025
– Tags: Latent View Analytics, AI Stocks, IT Consulting, Data Science, IPO Stars, Overvalued Tech Stocks