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We initiate coverage on Latent View Analytics (LATENTVI) with ‘BUY’ rating and TP of Rs 570 valuing at 40x (Sep’27E earnings), with potential upside of 40%. LATENTVI is a pure-play data analytics and AI (DAAI) service provider, operating in technology, financial services, consumer/retail and industrial domains. LATENTVI’s participation in multi-functional areas and KPI analysis, makes it unique among IT outsourcing providers. It generates ~50% revenue from customer profiling, marketing analytics and promotional activities. Access to a strong data foundation through Databricks partnership, has enabled it to extend enterprise service offerings around GenAI/agentic AI. Revenue from the partnership is expected to see exponential growth of 70%+ CAGR over FY25-28E, while the GenAI/agentic AI pipeline (USD8mn+) indicates constructive uptick in value proposition. LATENTVI’s next leg of growth would come from top 25 strategic accounts (Fortune 500) that are focused on building deep CXO connects across functions. Operating margin is likely to be stable at 23-25%; anything above would be re-invested to drive growth and build tech stack. We estimate USD revenue/INR EBITDA/INR PAT CAGR at 19.2%/25.1%/19.4% over FY25E-28E. Valuation remains inexpensive (~33x FY27E). We assign 40x for earnings CAGR of 19.4% over FY25-28E. Initiate with ‘BUY’.
