Buy Advanced Enzyme Technologies; target of Rs 424: Choice Equity Broking
Choice Equity Broking is bullish on Advanced Enzyme Technologies has recommended buy rating on the stock with a target price of Rs 424 in its research report dated April 15, 2021.
April 21, 2021 / 01:06 PM IST
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.
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