Sunday 9 September 2018

Advanced Enzyme Technologies Ltd - Value Pick - GTS 8

Received 101 answers to the Guess The Stock 7 and only 3 got it right: Amit Khan, Vijendra and Shashi G.

Advanced Enzyme Technologies Ltd
Market Cap: 2400 Odd Crores.
CMP: Around 220
Current P/E: Around 20-21 against FY19E EPS.

Advanced Enzyme Technologies Ltd (AETL) incorporated in 1989 is in the business of enzymes.

The company is having more than 400 proprietary enzyme products developed from 65 indigenous enzymes. The company offers these products to more than 700 developed customers, spanning presence across 50 countries worldwide.

The products find application in a wide array of industries including: human health care and nutrition, animal nutrition, baking, fruit & vegetable processing, brewing & malting, grain processing, protein modification, dairy processing, specialty applications, textile processing and others.
AETL is among the top 15 enzyme companies in the world. There are only two companies listed in this sector across the globe, one is AETL and the other is market leader Novozymes.

As for Financials have a look at the table below :

Financials: The company has reported robust growth in its business over time, 2018 was an exception when their net profits declined YoY, otherwise the company has delivered good earnings and now it seems to be back on track with its numbers and the management has guided for FY19 to be great and FY20 guidance is positive as well.

Here is a overview of this stock with most of its positives and negatives :-

Technical Breakout above 228-230 on the daily charts :-

All in All, The stock seems to be in the under-valued territory and I sense a case for almost 100% appreciation from CMP.

Note: The above overview captures most of the positives and negatives of the stock, I feel that dollar strength can create a ripple or a huge wave in stocks like these going ahead.


Corp Website
Latest Investor Presentation
Latest Concall Transcript
Screener of AETL

Note: The above is not a research report but information as available on public domain and it should not be treated as a research report.

Registration status with SEBI: I am not registered with SEBI under the (Research Analyst) regulations 2014 and as per clarifications provided by SEBI: “Any person who makes recommendation or offers an opinion concerning securities or public offers only through public media is not required to obtain registration as research analyst under RA Regulations”

Disclosure: It is safe to assume that i might have Advanced Enzyme Technologies Ltd in my portfolio and hence my point of view can be biased. Readers should consult their financial advisory before any investments.

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