Target: ₹560
CMP: ₹460.30
We upgrade LatentView Analytics to Buy (from Add) with a revised target price of ₹560 (vs. ₹480) on an unchanged P/E of 38x FY28E EPS of ₹14.9 (roll-forward by two quarters). We envisage healthy revenue growth of 6 per cent q-o-q USD in a seasonally strong Q3 and 50bps QoQ of EBITDA margin expansion, emplacing the company favourably to achieve its 20 per cent y-o-y USD revenue growth guidance in FY26.
Majority of the contract renewals due in the December quarter are likely to be completed without any price/volume drops, setting up well for FY27 growth. We believe, LatentView is poised to deliver strong profitable growth over FY27–28E led by strong execution on its four key growth bets: mining top accounts; data engineering service line; GenAI and Agentic AI – winning share from IT services peers; and expanding in BFSI, CPG and Retail.
Key downside risks: High client concentration – top 5 clients account for about 60 per cent of revenue; high vertical concentration – about 70 per cent exposure to technology vertical; Higher exposure to developed markets – North America contributes around 90 per cent of revenue; and acquisition integration risks.