Hold Advanced Enzyme Technologies, target price Rs 300 : ICICI Direct

ICICI Direct has hold call on with a target price of Rs 300. The current market price of Advanced Enzyme Technologies is Rs 273.0. Time period given by analyst is 1 year when Advanced Enzyme Technologies price can reach defined target.



., incorporated in the year 1989, is a Small Cap company (having a market cap of Rs 3052.74 Crore) operating in Agriculture/Horticulture/Livestock sector.

Advanced Enzyme Technologies Ltd. key Products/Revenue Segments include Enzymes and Export Incentives for the year ending 31-Mar-2022.

Financials
For the quarter ended 30-09-2022, the company has reported a Consolidated Total Income of Rs 142.56 Crore, up 15.80 % from last quarter. Total Income of Rs 123.12 Crore and up 11.40 % from last year same quarter. Total Income of Rs 127.98 Crore. Company has reported net profit after tax of Rs 26.26 Crore in latest quarter.

The company’s top management includes Mr. Vasant Rathi, Mr. Vinodkumar Jajoo, Mr. Nitin Desmukh, Mr. Pramod Kasat, Mr. Kedar Jagdish Desai, Mr. Rajesh Sharma, Dr. Sunny Sharma, Ms. Rasika Rathi, Mr. Mukund M , Ms. Rajshree Patel. Company has MSKA & Associates as its auditors. As on 30-09-2022, the company has a total of 11 Crore shares outstanding.

Investment Rationale

Advanced Enzyme's share price has grown by ~1.6x over the past three years (from ~Rs 169 in November 2019 to ~ Rs 273 levels in November 2022). The brokerage has upgraded the stock from Reduce to Hold with a neutral stance as it waits for consistency in core businesses as well as improvement in margin profile. The brokerage values the counter at Rs 300 i.e. 22x FY24E EPS of Rs 13.6.

Promoter/FII Holdings

Promoters held 49.87 per cent stake in the company as of 30-Sep-2022, while FIIs owned 18.72 per cent, DIIs 5.6 per cent.