Latent View Analytics Limited

Incorporated in 2006, Latent View Analytics Limited provides analytics services such as data and analytics consulting, business analytics & insights, advanced predictive analytics, data engineering, and digital solutions. The company provides services to blue-chip companies in Technology, BFSI, CPG & Retail, Industrials, and other industry domains. The company classifies its business into - (i) Consulting services, which involves understanding relevant business trends, challenges, and opportunities and preparing a roadmap of data and analytics initiatives that addresses them; (ii) Data engineering, to design, architect, and implement the data foundation required to undertake analytics; (iii) Business analytics, which delivers analysis and insights for clients to make more accurate, timely and impactful decisions; and (iv) Digital solutions which the company develops to automate business processes, predict trends and generate actionable insights. The company has a presence across countries in the United States, Europe, and Asia through their subsidiaries in the United States, Netherlands, Germany, United Kingdom, and Singapore, and their sales offices in San Jose, London, and Singapore. They have worked with over 30 Fortune 500 companies in the last three fiscals and some of the key clients include Adobe, Uber Technology, and 7-Eleven. The company designs and engineers result-oriented analytics solutions for clients across industries, that enable them to operate more efficiently by predicting outcomes that fuel digital transformation and sustainability. Its expertise in business analytics includes analytics with respect to customer profiling, targeted marketing, supply chain management, finance and risk management, and HR functions. The company provides these services on the back of the expertise and understanding it has developed of various AI/ML algorithms that power digital analytics implementations. As per financial performance, Latent View has posted total income/net profits of Rs. 295.90 Cr / Rs.61.71 Cr (FY19), Rs.329.67 Cr / Rs. 79.04 Cr (FY20), Rs 326.70 Cr / Rs. 89.34 Cr (FY21) and Rs 91.74 Cr / Rs.23.74 Cr (FY22) .So company has shown good growth over last couple of years.They have posted an average EPS of Rs. 4.42 and average RoNW of 21.15% for last 3 fiscals. Issue is priced at a P/BV of 2.44 as per NAV of 80.67 on 30.06.21. If we attribute latest earnings of FY21 on fully diluted equity post issue, then asking price is at a P/E of around 37.94 and if we annualise FY22 earnings, P/E is 38.87, which looks fully priced. As per RHP, Comparison between listed peers are shown in above table. On BRLM's front, two lead manager is associated with this IPO, and have handled around 30 IPO in last three fiscals. From last 10 IPOs, one is opened below issue price and remaining are opened above issue on the day of listing. As of now, three are trading below issue price and other are trading above issue price. ( As on 01.11.21) As per financials, Latent View has shown good growth, RoNW is 20.89% and P/E is around 38 as per FY21 earnings, which looks fully priced. Company is in data analytics services business and created space for itself in this highly competitive software industry. This sector is expected to grow at good rate and company will be able to beat industry growth rate. Performance of BRLM is average. So, we are giving SUBSCRIBE rating to this IPO for listing gains as well as long term.

• 1  Adugudi viswanaThan Venkataraman
• 2  Premawathi Jandhyala