Shares of leading enzymes player Advanced Enzyme are higher by nearly 9 percent, clocking its best day in 11 months with volumes that are 23 times the 20-day average in early trade on August 29.
The shares are now higher by over 13% in the last five sessions and are up 1.4% over the past 30 days. According to Bloomberg data, Advanced Enzyme trades at 25x its estimated earnings per share for FY27, and trades at 30x the trailing EPS, with the company priced at 2.8x the book value.
The company derives nearly half of its revenue from exports, with a sizeable exposure to the US markets. While admitting that this is an 'uncertain time' for the company, Advanced Enzyme said the company will focus on expanding segments like human and animal nutrition along with other segments.
"...the management is continuously trying to see that we keep a double-digit growth. And improve our competitiveness in the global market and also walk through this tariff war. We'll see what happens," Vasant Rathi, Chairperson of Advanced Enzyme said on August 11 during an interaction with analysts after the June quarter earnings.
During the June quarter, Advanced Enzyme had achieved its highest quarterly revenue of Rs 185.9 crore, growing 20% on year, along with a net profit of Rs 40.4 crore, which was 16% higher on year.
The company had also announced the setting up of a new subsidiary - Advanced Nutrazyme - to focus on sales and distribution of nutrition and wellness products.
"This segment is very start-up segment for us. We are looking at a global platform right now, including B2C markets in US. We anticipate this growth trajectory continues in all our segments in coming times," Vasant Rathi had said.
The company had also reported an improvement in its B2C revenue from USA. "...we have a good base. Now a lot of good strategies are there, which we wanted to expand that market. And we'll be working on that for next -- this year and to expand the market as much as we can," the chairman added.
The management has been watchful of the US tariff impact, and during the June quarter, the company moved additional inventory into US. "Probably we will wait and watch for another one quarter and then we'll see how to move forward," said the chairman, on navigating the tariff situation. "...you got to find out where I can get a secondary source of supply at cheaper prices. Naturally, industries have to accommodate and adjust accordingly. There might be some pressures on the pricing, and the margins."
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