Does Latent View Analytics need more data on growth before its IPO? Here’s everything you need to know!

8 November 2021
3 mins read
Does Latent View Analytics need more data on growth before its IPO? Here’s everything you need to know!

Latent View Analytics is set to go public on 9 November 2021. As per the DRHP filed with SEBI the company plans on raising an amount of about Rs. 600 crores through this IPO.

Taking about the IPO, there will be a fresh issuance of equity shares of Rs. 474 crores. In addition, existing stakeholders will be letting go of some of their shares worth Rs. 126 crores through an OFS.

For individuals interested in subscribing to Latent View Analytics’ initial public offer, here are the things you definitely need to know.

Details of Latent View Analytics IPO

Here are the details about the upcoming public offer:

  • Issue Type: Book built
  • Face Value: 1per share
  • Price Band: 190 – Rs. 197
  • Market Lot: 76 shares
  • IPO Closing Date: 11November 2021
  • Listing on: NSE and BSE

Know More about the Business

Latent View Analytics provides a variety of services, including data insights, consulting, data engineering solutions, and predictive analytics. Making more than 90% contribution to the company’s revenue, the United States has evidently become its main market.

With more than 54% contribution to the gross figures from the top 5 clients in the last 3 years, Latent View Analytics now faces significant concentration risk. This contribution further increased 5% in the quarter of June 2021 alone. Moreover, a few among the top 10 clients have already reduced their business with Latent View Analytics in the last three years.

In addition, Latent View Analytics’ rate of attrition has been high in the past few years. It was 26.7% in FY21. Between April 2021 and September 2021, the attrition rate came down a bit to 21.5%, with 859 employees in total.

Find Out About the Financials

In FY 2021, Latent View Analytics saw a drop of 1.4% in its revenue, and it stood at Rs. 50.9 crores. The company attributed this top line weakness to decreased client mandates owing to the pandemic.

However, the company’s net profit for FY21 rose by 25.5% to Rs. 91.4 crore. This was possible due to reduced costs for employees and other additional costs. In the quarter of June 2021, Latent View’s revenue rose by 20.3% YOY to around Rs. 87.8 crores, but the net profit decreased by 2.2% to Rs. 22.8 crores owing to higher costs.

Latent View Analytics’ EBIT margin improved from FY20’s 30% to 38.7% in FY21. However, it decreased to 33.3% in the quarter of June 2021 as compared to 40.2% in the same quarter from last year.

Bottom Line

Considering the implied market cap and an annualised net profit from the quarter of June 2021, Latent View Analytics has a P/E ratio of 43.7. Although the valuation seems to be on par with a few other mid-tier entities in the industry, the current sector valuation looks unreasonably high.

Looking at the company size, its valuation seems a bit stretched. However, the initial public offering is knocking at the door. So, some investors may choose to wait until Latent View Analytics shows a solid growth trend.

If you are planning to invest in Latent View Analytics IPO, you can do it by using the Angel One website.

 

Frequently Asked Questions

  1. How much does Latent View’s total revenue amount to as of 30 June 2021?

Latent View Analytics’ total revenue amounts up to Rs. 917.43 millions as of 30 June 2021.

  1. How much do the total assets of Latent View amount to?

As of 30 June 2021, the total assets of Latent View Analytics amount to Rs. 5,880.08 millions.

  1. How much is Latent View’s profit after tax as of 30 June 2021?

As of 30 June 2021, Latent View Analytics’ profit after tax was Rs. 223.14 millions.