Latent View Analytics shares up 8%; more upside ahead?

Shares of LatentView Analytics climbed 8 per cen in Tuesday's trade, as the company's Q1 operating performance was largely in line with Street expectations. The company's organic revenue growth was modest at approximately 1.5 per cent QoQ in dollar terms, influenced by the conclusion of a consulting engagement in the tech vertical. The Management continued to forecast 18-19 per cent YoY dollar revenue growth, citing potential upside risks.

On Tuesday, the stock climbed 7.87 per cent to hit a high of Rs 466.85 on BSE. Despite the soft revenue growth in the organic segment, ICICI Securities noted LatentView Analytics' efforts to maintain an Ebitda margin of around 23 per cent for FY26, similar to the previous fiscal year. The company has emphasised its strategic approach to achieve these targets through effective leverage.

ICICI Securities maintained its valuation of LatentView Analytics at 38 times the EPS from Q3FY27 to Q2FY28, which is estimated at Rs 13. This calculation supports a target price (TP) of Rs 490, while continuing to recommend an 'ADD' on the stock.

The company aims to achieve 18-19 per cent YoY growth in FY26, driven by a strong order book and robust pipeline. Furthermore, LatentView projects strong sequential growth in Q2, expected to counteract Q1's softness.

LatentView's Decision Point segment is poised for accelerated growth, bolstered by a low starting point and enhanced cross-sell and up-sell synergies. The firm introduced seven new clients in Q1FY26, with some anticipated to exhibit significant growth in the coming 12 to 18 months.

Looking forward, LatentView Analytics reiterated its medium-term goal of reaching $200 million in revenue by FY28. This objective focuses on key areas such as data engineering, Gen AI, and enhanced account mining efforts.

To support this strategic vision, the company is making significant investments in databricks and a Gen AI Centre of Excellence (CoE), as evidenced by the doubling of its CoE headcount. This expansion underscores LatentView's commitment to leveraging advanced technologies for sustained growth.

In conclusion, ICICI Securities' positive outlook for LatentView Analytics reflects confidence in the company's strategic initiatives and market positioning. As LatentView advances towards its ambitious revenue targets, stakeholders can expect continued focus on innovation and market expansion.