Latent View Analytics shares advance 4%; PL Capital sees 42% upside

Latent View Analytics shares rose 3.7 per cent on Tuesday, logging an intra-day high at ₹417.1 per share. At 9:59 AM, Latent View Analytics' share price was trading 2.94 per cent higher at ₹413.65 per share. In comparison, the BSE Sensex was up 0.09 per cent at 80,433.4.

 

PL Capital has initiated coverage on Latent View Analytics with a ‘Buy’ call. The brokerage has given a target of ₹570 per share, implying a 41.8 per cent upside from Tuesday’s close of ₹401.85 per share. The company’s participation in multi-functional areas and key performance indicator (KPI) analysis makes it unique among information technology (IT) outsourcing providers, PL Capital noted.

 

Latent View operates as a pure-play data analytics and AI (DAAI) services provider across technology, financial services, consumer/retail, and industrial domains. About 50 per cent of its revenues are derived from customer profiling, marketing analytics, and promotional activities — a differentiating factor vis-à-vis traditional IT outsourcing firms, PL Capital noted. The company is deepening partnerships and building a strong enterprise foundation for artificial intelligence (AI) adoption.  

Why is PL Capital bullish on Latent View?

Account scaling and strategic investments

The company is focused on scaling top 25 strategic accounts (mainly Fortune 500) by building deep CXO-level connections. According to PL Capital, about 24 of its 100 active accounts have been serviced for more than five years. While client count in the $1–6 million bucket has grown at a 22.4 per cent CAGR (FY22–25), revenue growth there lags at 13 per cent CAGR, indicating further scaling potential.

 

On the investment front, the Decision Point (DP) acquisition boosted consumer/retail revenue contribution to 15 per cent (from 9 per cent in FY24). Management is planning to raise this to 20 per cent over the next three years, leveraging complementary strengths in marketing, promotions, and consumer analytics.

Databricks tie-up to drive next leg of growth

Revenue from the Databricks partnership is expected to grow at a 70 per cent compound annual growth rate (CAGR) over FY25–28E, with GenAI/agentic AI pipeline of $8 million pointing to strong traction, according to the brokerage analysis. 

 

Currently, Databricks contributes 10–12 per cent of revenue, which management targets to scale up to 25 per cent by FY28. Around 80 per cent of these engagements involve complex computations and POCs, underscoring the scope for expansion. 

GenAI and Agentic AI: Key drivers

Currently contributing high single-digit revenues, GenAI and agentic AI are expected to fuel Latent View’s next phase of growth, according to PL Capital. Management believes budget allocation will remain intact despite deflationary pressures, with a larger share of wallet (SOW) across enterprise clients. 

 

The company aims to double revenue from GenAI/agentic AI in the medium term, with early agentic AI engagements maturing into multi-function deployments, aided by growing mandates for data foundation and outcome-based solutions.