Buy Latent View Analytics; target of Rs 490: Prabhudas Lilladher

Prabhudas Lilladher is bullish on Latent View Analytics has recommended buy rating on the stock with a target price of Rs 490 in its research report dated March 04, 2026.

Broker Research

March 04, 2026 / 12:22 IST

Buy

Prabhudas Lilladher's research report on Latent View Analytics

We interacted with the management of LATENTVI (LV). As per the management, the changing AI landscape is likely to put pressure on the Diagnostics segment (60% of revenue), especially in technical areas, while the Domain and Consulting segments should maintain a steady state. Traction in Data Engineering remains strong, aided by the Databricks partnership and expanding avenues around Snowflake and GCP, which are expected to accelerate further as enterprises receive boardroom mandates to make their data AI-ready. FS, Retail and Industrial verticals should continue their growth momentum in FY27E, with 25–30% YoY growth, supported by underlying demand and scaling efforts to graduate the first potential FS accounts into the USD10mn+ band. LV is focused on driving revenue through advanced AI horizontal capabilities (~20% of revenue). As advanced AI becomes more progressive, hiring is becoming more selective and domain-oriented. Margins are likely to remain within the guided band of 23–25%, supported by improved utilization, selective hiring, and a higher fixed-price mix (80–85%). With a cashrich (~9% market cap) balance sheet, the company is exploring opportunities in the Healthcare & Life Sciences segment and Databricks capabilities. Following the recent market correction, valuations also appear to be more attractive from a target perspective.

Outlook

We reduce our USD revenue estimates by 60bps/90bps for FY27E/FY28E, respectively, due to continued weakness in Hi-Tech and higher concentration mix of Diagnostics, but keep our margin estimates unchanged. The stock is currently trading at 26x/21x of FY27E/FY28E earnings after the recent correction. We assign PE multiple of 32x (40x earlier) to FY28E earnings and arrive at revised TP of Rs490 (Rs630 earlier). Maintain ‘BUY’.

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