Shares of Latent View gained 40% in the 2 days following the listing. What should investors do?

“Outsourced analytics companies have faced issues in terms of increasing revenue beyond the $50 million limit. So, it is easy to grow to a certain limit but difficult to go beyond that and we have seen that MuSigma and Fractal Analytics We believe that given that revenue growth has been flat over the past 3 years, it is important for us to do something before we think about investing,” said Ujjwal Kumar, Research Analyst, Latentview Green Portfolio. It is very important to start seeing growth.

Kumar believes that LatentView’s valuation is at a higher post-listing level. He advises investors to exit with a post-listing profit and make an entry at a later date, when there is visibility of higher growth and increasing profitability.

LatentView Analytics’ initial public offering (IPO) has received overwhelming response from all categories of investors as it was subscribed 326.49 times earlier this month. NS 600 crore IPO price limit was 190-197 per share.

“We advise investors to book their profit on 50% of positions at current levels and wait for remaining positions at 650 levels. The revenue model of the company is stable and recurring hence investors can profit in the long run, Ravi Singh, Head of Research and Vice President, ShareIndia said.

Latent View provides services ranging from data and analytics consulting to business analytics and insights, advanced predictive analytics, data engineering and digital solutions.

Ravi Singhal, Vice Chairman, GCL Securities Ltd. said, “Since this company has huge growth potential, this stock should be held for long term. From here the value will at least double in three years.”

The views and recommendations given above are those of individual analysts or broking companies and not of Mint.