ICICI Direct has given Buy recommendation for Advanced Enzyme Technologies with a target price of Rs. 480 in its research report issued on Feb 16, 2021
ICICI Direct’s research report on Advanced Enzyme Technologies
Q3 revenues grew 23.0% YoY to Rs 137.7 crore on the back of 34.9% YoY growth in human healthcare (HC) segment to Rs 108.9 crore. Animal HC saw a decline of 29.5% YoY to Rs 10.5 crore whereas industrial processing segment grew 12.3% YoY to Rs 18.3 crore. EBITDA margins expanded 97 bps YoY to 48.2% with lower employee & other expenditure being partly offset by lower gross margins. Hence, EBITDA grew 25.6% YoY to Rs 66.4 crore. PAT grew 28.2% YoY to Rs 43.1 crore in-line with operational performance.
We maintain BUY with a revised target price of Rs 480 (earlier Rs 425) based on 25x FY23E EPS of Rs 19.2.