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In Q2FY25, LatentView Analytics (Latentview) posted 34%YoY/ 17%QoQ revenue growth, driven by the addition of
Decision Point's revenue, which contributed Rs. 225mn, alongside organic growth of 20% YoY/ 4%QoQ. The company's
EBITDA rose by 47% YoY/ 18%QoQ, attributed largely to revenue gains, while EBITDA margins remained steady at 21.7%,
with slight growth (2 bps YoY/1 bps QoQ). Profit after tax (PAT) increased 20% YoY/5%QoQ, despite higher non-operating
costs due to the merger, offset by strong revenue growth. LatentView anticipates significant opportunities in the data,
analytics, and AI services market, which is expected to expand from approximately $125bn to $165bn by 2026. The company
estimates that 40-45% of this market will be outsourced, with India holding 45% marketshare.

Analyst Meet Update
* Data, Analytics, and AI service market is projected to reach
$165 billion by 2026.
* AI/ML and advanced analytics (36% of current revenue)
expected to grow at a 25% CAGR.
* Data visualization (34% of currentrevenue) anticipated to grow
at 9% CAGR.
* Data engineering (30% of currentrevenue) expected to expand
at a 23% CAGR.
* Global Data and Analytics outsourcing market was $9 billion
in 2023 and is expected to grow at a 32% CAGR by 2030.
* During the pandemic, the EBITDA margin reached 30% due to
an onshore-to-offshore ratio of 1:6 (higher offshore presence).
This ratio has since normalized to 85% offshore.
* Post-IPO, the company significantly expanded its sales team,
growing from 3 to 16 in the US and establishing a 9-member
team in the UK. Thisteam is expected to support an additional
$50-60 million in revenue with current resources.
* FY25 revenue target set at $100 million. Expected revenue of
$200-220 million by FY27-28.
* Forecasted growth rates: AI/ML and advanced analytics at 45%,
data engineering at 30%, and data visualization at 23%.

* Within data engineering, data governance and data
authenticity, along with collation from multiple sources,
remain challenging areas.
* Managed services, which represent 70% of the workload, are
longer-term contracts. Asthe data analyticsindustry matures,
these engagements are expected to lengthen

Outlook & Valuation
LatentView appearsto be well-positioned for growth, particularly
with its focus on high-growth sectors like BFSI and CPG/Retail,
which are projected to have a CAGR of 30-35%. Additionally, the
company is bolstering its data engineering and advanced analytics
capabilities, which are expected to grow at a CAGR of 45% and
30%, respectively. These strengths are further supported by
strategic partnerships with companies like Databricks, which will
help LatentView solidify its position in the expanding analytics
market. LatentView has set an ambitious revenue target of $200-
220mn by 2026, with an emphasis on AI/ML and advanced
analytics (projected CAGR of 45%) and data analytics (CAGR of
30%), particularly in the BFSI and CPG/Retail sectors. The company
is expected to achieve a Revenue/EBITDA/PAT CAGR of 28%/34%/
24%. Using a median PE multiple of 55x (currently trading at 57x)
and an estimated EPS of Rs 12.1 for the year ending September
2026, the target price for LatentView's shares is Rs 663, implying
a potential upside of 42% from the current market price of Rs 467.

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