25 Nov , 2021 By : Kanchan Joshi
Shares of Latent View Analytics continued its stellar rally after bumper listing earlier this week as the scrip rose 18% to Rs695 apiece in Thursday's early deals, giving more than 40% return in just three trading sessions. The stock had made a strong market debut on Tuesday with a premium of 148% against its IPO issue price of Rs197.
"Outsourced analytics companies have faced issues in terms of scaling revenue beyond the $50 mn threshold. So, it is easy to grow to a certain limit but difficult to scale beyond that and we have seen that happen with MuSigma & Fractal Analytics. We believe Latentview is also going through this given that the revenue growth has been flat over the last 3 years. So it is very important for us to start seeing some growth before we think of investing," said Ujjawal Kumar, Research Analyst, Green Portfolio.
Kumar believes the valuation of Latent View is on the higher side post listing. He has adviced investors to exit post listing gains and then make an entry at a later date once these is a visibility of higher growth and increasing profitability.
The initial public offering (IPO) of Latent View Analytics received overwhelming response from all category of investors as it was subscribed a whopping 326.49 times earlier this month. The Rs600-crore IPO had a price range at Rs190-197 per share.
“We advice investors to book their profit in 50% positions at current level and wait for 650 levels for rest of the positions. The company’s revenue model is stable and recurring so in long run investors may be benefitted," said Ravi Singh, Head of Research & Vice President, ShareIndia.
Latent View provides services ranging from data and analytics consulting to business analytics and insights, advanced predictive analytics, data engineering, and digital solutions.
"As this company has huge potential of growth, one must hold this share for long term. Value will be atleast double in three years from here," said Ravi Singhal, Vice Chairman, GCL Securities Limited.