Latent View Analytics shares gained for the third consecutive session on November 25, crossing the Rs 700-mark for the first time since listing.
The data analytics services company’s stock was locked at Rs 702.35 with a 20 percent gain on the BSE with strong trading volumes —over 2 million shares on the BSE and 21.8 million shares on the National Stock Exchange.
With this rally, investors who hold Latent View shares purchased during the initial public offering have made three-and-half-time the gains from the issue price of Rs 197 a share. Experts are confident about the long-term story of the company and advise investors to hold the stock for the long term.
“As this company has huge potential for growth, one must hold this share for the long term. Value will be at least double in three years from here,” said Ravi Singhal, vice chairman at GCL Securities.
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Ravi Singh, head of research at ShareIndia, advised investors to book partial profit.
“The company’s revenue model is stable and recurring, so in the long run investors may be benefitted,” he said.
Latent View Analytics had a stellar debut on November 23, ending the day with a 148 percent gain at Rs 488.60 and then added 20 percent in the next session.
The company reported a 25.6 percent gain in consolidated profit to Rs 91.46 crore on revenue of Rs 305.88 crore in FY21. Profit fell 2.1 percent to Rs 22.31 crore in the June quarter on revenue of Rs 87.83 crore.
Latent View Analytics provides services to blue chip companies in technology, banking, financial services and insurance (BFSI), consumer packaged goods and retail and industrials. It has worked with over 30 Fortune 500 companies in the last three financial years.
The company earned 92.88 percent of its revenue from the US, followed by 1.85 percent from the UK, 1.41 percent from the Netherlands, and 3.86 percent from the rest of the world in FY21.
Latent View’s Rs 600-crore IPO included a fresh issue of Rs 474 crore. The company will utilise the net proceeds from the fresh issue for inorganic growth initiatives (Rs 147.9 crore), working capital requirements of the subsidiary LatentView Analytics Corporation (Rs 82.4 crore), and investment in subsidiaries to augment their capital base for future growth (Rs 130 crore).
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