1. At a Glance
Latent View’s revenue grew 31.9% YoY in Q1 FY26, delivering ₹236 Cr in topline and ₹51 Cr in net profit. Cool. But here’s the plot twist—cash reserves are chunky, margins are healthy, and yet… stock is down 17% YoY. It’s like getting straight A’s and still not being invited to prom.
2. Introduction with Hook
If data is the new oil, Latent View is the shiny refinery that’s still figuring out how to sell petrol. It’s India’s first analytics company to list, but its stock performance has been… well… analytically disappointing.
- Q1FY26 PAT: ₹51 Cr
- ROCE: ~15%, ROE: ~12%
- PE: 48x, but growth is slowing like your 2016 MacBook
Is Latent View a future compounder or a case study in “too clean, too slow”?
3. Business Model (WTF Do They Even Do?)
Latent View is not your usual IT services firm. It’s a pure-play data analytics company with verticals in:
- Data Consulting – building analytics roadmaps
- Advanced Predictive Analytics – modeling consumer behavior, churn, etc.
- Business Analytics & Insights – what your boss calls “data-driven strategy”
- Digital Solutions & Engineering – because everyone needs a buzzword dump
- Clients – Blue chips in BFSI, Tech, CPG, Retail
Revenue model is project-based with long-term retainer clients, largely export-driven. It’s like TCS but more Excel formulas and fewer relatives asking for job referrals.
4. Financials Overview
| Metric | FY24 | FY25 | Q1 FY26 |
|---|---|---|---|
| Revenue (₹ Cr) | 641 | 848 | 236 |
| PAT (₹ Cr) | 159 | 173 | 51 |
| EBITDA Margin | 21% | 23% | 21% |
| ROCE | 15% | 15.2% | ~15% |
| ROE | 11.5% | 11.5% | ~12% |
No drama, no disaster. Just steady, boring profitability. A dream for long-term investors. A snooze fest for momentum traders.
5. Valuation
| Metric | Value |
|---|---|
| CMP | ₹433 |
| Book Value | ₹72.6 |
| P/B | 5.95x |
| PE (TTM) | 48.7x |
| Market Cap | ₹8,942 Cr |
EduFair Value Range:
- Assume FY26 PAT of ₹220 Cr
- At 30x PE (for high-growth analytics) → ₹6,600 Cr = FV ₹320–350
- At 40x PE (premium for niche) → ₹8,800 Cr = FV ₹430–470
Verdict: Fairly priced. But “justified PE” isn’t as cool as “multibagger” on Twitter.
6. What’s Cooking – News, Triggers, Drama
- Q1FY26: Strong 31.9% YoY growth; steady margins
- Stake in Decision Point: Acquired 10% to boost product-led revenue
- Tax Credit of ₹4.87 Cr: Boosted bottom line
- FIIs + DIIs increasing: Smart money nibbling
- No debt, fat cash pile: More passive income than some startups have active
This is the guy at the party who doesn’t drink or dance, but invests in equity mutual funds and leaves at 10 pm. Responsible. Predictable. Kinda boring.
7. Balance Sheet
| Item | FY25 (₹ Cr) |
|---|---|
| Equity Capital | 21 |
| Reserves | 1,479 |
| Borrowings | 29 |
| Investments | 848 |
| Fixed Assets | 401 |
| Other Assets | 531 |
| Total Assets | 1,789 |
Highlights:
- Near zero debt
- ₹848 Cr parked in investments = “other income” contributor
- Fixed assets jumped: possible infra expansion?
8. Cash Flow – Sab Number Game Hai
| Year | CFO | CFI | CFF | Net Cash |
|---|---|---|---|---|
| FY23 | 97 | -3 | -1 | 111 |
| FY24 | 115 | -221 | -5 | -95 |
| FY25 | 130 | -221 | -5 | -95 |
Takeaway:
- Strong cash generation from ops
- Investing heavily — smart or risky depends on outcome
- Dividend payout? LOL, not yet. They love hoarding cash like doomsday preppers
9. Ratios – Sexy or Stressy?
| Metric | Value |
|---|---|
| ROCE | 15.2% |
| ROE | 11.5% |
| OPM | 21–24% |
| Cash Conv Cycle | 80 Days |
| Working Cap Days | 104 Days |
Conclusion: Healthy margins and efficiency. No diabetes or cholesterol here. Just low iron levels (read: growth anemia).
10. P&L Breakdown – Show Me the Money
| Year | Revenue | Expenses | EBITDA | PAT |
|---|---|---|---|---|
| FY23 | ₹539 Cr | ₹394 Cr | ₹145 Cr | ₹155 Cr |
| FY24 | ₹641 Cr | ₹504 Cr | ₹136 Cr | ₹159 Cr |
| FY25 | ₹848 Cr | ₹652 Cr | ₹196 Cr | ₹173 Cr |
Q1FY26 already contributed ₹236 Cr. Annualizing that? Potential ₹900–₹950 Cr topline. But PAT growth slowing.
11. Peer Comparison
| Company | PE | ROE % | OPM % | Remarks |
|---|---|---|---|---|
| TCS | 23x | 32% | 26% | Godfather of IT |
| Infosys | 25x | 18.6% | 24% | Solid but ageing |
| Persistent Sys | 66x | 24% | 17% | Growth darling |
| Latent View | 48x | 11.5% | 22% | Niche but slow-burning |
They’re the cool kid in the honors class, but still not head boy.
12. Miscellaneous – Shareholding, Promoters
| Shareholder | Jun ’23 | Jun ’25 |
|---|---|---|
| Promoters | 65.74% | 65.20% |
| FIIs | 1.83% | 2.10% |
| DIIs | 1.65% | 3.25% |
| Public | 30.78% | 29.44% |
| Shareholders | 2.9L+ | 2.35L |
No drama. No pledges. No panic.
Just a slow decline in public shareholding as institutions nibble in the background. That’s confidence… or resignation.
13. EduInvesting Verdict™
Latent View is India’s only listed analytics specialist and it acts like one:
- Clean numbers
- High margins
- Consistent growth
- Not a shred of excitement
This is not the next “10x in 2 years” story. This is the “20% CAGR for 7 years” type of spouse your mother wants you to marry.
If you’re into:
- Dividends = Look elsewhere
- Explosive growth = Still maturing
- Capital preservation + peace of mind = This is your stock
EduTake: Latent View is Earnings First, Hype Last. If you can sit through some quarterly yawns, it may just surprise you in the long term.
Metadata
– Written by EduInvesting Team | 21 July 2025
– Tags: Latent View Analytics, Q1FY26, Analytics Stocks, Data Science, IT Services, Midcap Tech
