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Founded in 2006, Latent View Analytics Ltd. (LVAL) is a pure-play global data analytics firm. The company with its end-to-end data analytics solutions enables companies to predict new revenue streams, anticipate product trends & popularity, improve customer retention rates and optimize investment decisions. It derives around 95% of the revenue from the USA and provides services to 30+ Fortune 500 companies engaged across sectors like Financial Services, Consumer & Retail, Technology, Industrials, Media & Entertainment etc

Investment rationale:

• Data & Analytics - one of the fastest-growing segments of digital spending

• India - a top sourcing destination for analytics delivery

• LVAL - an end-to-end data analytics solution provider with wide capabilities

• Presence in UK and Europe is likely to expand

• Top-line to grow by 19.4% CAGR with 38bps expansion in the operating margin

Risk and concerns:

• Reduced D&A spending

• Difficulty in penetrating the European market

• Geographical revenue and client revenue concentration risk

• Unfavorable forex movement

• Intense competition

Valuation:

D&A is emerging as one of the fastest-growing segments in the global digital spending. Harnessing the power of data, LVAL is a pure play digital analytics company providing end-toend data analytics solutions to 30+ Fortune 500 companies. Global enterprises needs to remain invested in the digital technologies so as to stay competitive and be future ready. Companies like LVAL will continue to remain in demand in the medium term, thus we are assigning a “BUY” rating on the stock with a target price of Rs. 467.4 per share.

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