Xtrade Stock Overview for 17th January 2018

Advanced Enzyme Technologies


Market Cap : ₹ 3,450.48 Cr.

Stock P/E: 40.10

Book Value: ₹ 44.56

Face Value: ₹ 2.00

CMP : 307.50

Financial Results

Quarter Ended 30 Sep 2017 30 Jun 2017
Total Income 4,916.70 4,830.30
PBT 689.50 712.20
Net Profit/Loss 541.40 508.00

Value in lakhs

Share Holding Pattern

Category 30 Sep 2017 31 Dec 2017
Promoter & Promoter Group 71.31 71.31
Public 28.69 28.69
Shares held by Employee Trusts 0.00 0.00
Total 100.00 100.00

Advanced Enzyme Technologies (AETL), a global manufacturer of enzymes and probiotics, will benefit from research & development of new applications for use of enzymes across various industries. Acquisition of 70% stake in JC Biotech would enhance the company’s market share in ‘anti-inflammatory enzyme’ segment. We expect revenue and PAT CAGR of 11% and 13% respectively over FY17-19E.

AETL is a marginal player in global enzyme market, but a leading player in niche nutraceutical industry. Its revenue consists of Human Health Care (72%), Animal Health Care (15%), Food (7%) and Industrial Processing (6%) in FY17. It has 28 registered patents and more than 400 proprietary products. AETL plans to broaden and deepen its geographical presence, invest in R&D of new enzymes and enhance competencies in key focus markets to boost revenue.
AETL enjoys 10% market share in specialty enzyme markets, which is expected to post 10% CAGR over FY17-22E. This will be driven by falling cost of DNA manipulation and demographic shift to diagnostic enzymes. Consequently, we expect revenue CAGR of 11% over FY17-19E. Estimate PAT CAGR of 13% over FY17-19E, aided by reduction in interest cost as a result of debt reduction by the company. The company expects the revenue to hit Rs 1000 crore mark in the coming 5 fiscals through organic and inorganic growth.

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