Choice Equity Broking has given Buy recommendation for Advanced Enzyme Technologies with a target price of Rs. 424 in its research report issued on Apr 15, 2021
Choice Equity Broking’s report on Advanced Enzyme Technologies
Advanced Enzyme Technologies Ltd. (AETL) is the largest Indian enzyme company and is engaged in the research & development, manufacturing and marketing of 400+ proprietary products developed from over 68 indigenous enzymes and probiotics. The company has manufacturing facilities and research & development centers in India, US and Germany. It exports its products to more than 45 countries across six continents. Revenue for 9M FY21 grew by 10.5% YoY and stood at Rs. 368.6Cr. EBITDA for the period was Rs. 176.6Cr as against Rs. 153.6Cr in the previous year and grew by 15% YoY. PAT grew by 17% YoY and came in at Rs. 114.5Cr. The company works in three segments and provides solutions to a wide variety of industries like human healthcare & nutrition, animal nutrition, baking, fruit & vegetable processing, brewing & malting, grain processing, protein modification, dairy processing, specialty applications, textile processing, leather processing, paper & pulp processing, biofuels, biomass processing and biocatalysis etc.
At current market price of Rs. 355, AETL is trading at a TTM P/E multiple of 27.1x. We value AETL at a P/E multiple of 28x to its FY22 earnings to arrive at a target price of Rs. 424 per share. Thus we assign ‘BUY’ rating to the stock.