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Here’s why it’s the most watched public show

Major Analytics Latent View Analytics is ready to be listed on D-Street Tuesday. CNBC-TV18’s Reema Tendulkar decoded why Latent View Analytics was the most popular public issue.

A request of 1.1 lakh crore for a problem of Rs 600 crore is quite astonishing. There was a technical factor to this. The money that was stuck in Nykaa’s initial public offering (IPO) was released just before this show and likely found its way here for deployment. Latent View is a data analytics company and the industry in which it operates is expected to grow 18% to $ 333 billion by 2024.

The company performs prescriptive analyzes for automakers to help them with productive maintenance. Its main customers include Microsoft, Uber, Adobe and 7-Eleven. However, the company’s revenue growth was reduced to 3%. The revenue was Rs 288 crore in FY19 which rose to Rs 306 crore in FY21, the reason being the COVID-19 pandemic and also the internalization by one of its main customers, the name that goes around is PayPal.

The company has 45 clients, most of whom are Fortune 500 clients, 55% of its revenue is from the top five customers, and 95% of its revenue is from the United States.

EBITDA margins are healthy. After-tax profit margins (PAT) fell from 20% two years ago to 29%. The yield ratios are also healthy at over 20 percent.

Company valuations are also 43 to 44 times much cheaper than Happiest Minds.

Latent View has Rs 360 crore of cash on its books, and it will increase the cash through a new issue. Although it is a company with positive cash flow, it has not paid out dividends in the past three years.

The market has clearly given it the green light – it’s the first data analytics company to go public, so it has the first-mover advantage.

To learn more, watch the accompanying video.

First publication: STI


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