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Advanced Enzyme Technologies Ltd June 2, 2020

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Advanced Enzyme Technologies Ltd June 2, 2020

Advanced Enzyme Technologies Ltd

Textiles
FV – Rs 2; 52wks H/L – 225/91.05; TTQ – 5528; CMP – Rs 153 (As On June 2, 2020);                     

            Market Cap – Rs 1712 Crs

Consolidated Financials and Valuations (Amt in Rs Crs unless specified)

 
Equity Capital

Net worth
Long Term Debt
Total
Sales
PAT
BV
(Rs)

EPS (Rs)

P/E

Industry P/E

P/BV

Promoter’s
Stake
FY20 22.34 839 16 450 133 75 11.9 12.9 16.18 2.04 57.88
FY19 22.33 679 28 425 111 61 9.95 15.4 16.18 2.5 57.86
Q3 FY20 22.34 777 19 338 100 70 8.9 17.2 16.18 2.2 57.88

 

Debt to Equity – 0.02

ROE – 16%

Market Cap/Sales – 3.8

Overview:

  • Advanced Enzyme Technologies Limited (AETL) is a research driven company with global leadership in the manufacturing of enzymes and probiotics.
  • They are the largest Indian enzyme company, engaged in the research and development, manufacturing and marketing of 400+ proprietary products developed from over 68+ indigenous enzymes and probiotics.
  • The company is committed to providing eco-safe solutions to a wide variety of industries like human health care and nutrition, animal nutrition, baking, fruit & vegetable processing, brewing & malting, grain processing, protein modification, dairy processing, speciality applications, textile processing, leather processing, paper & pulp processing, bio-fuels, bio-mass processing, bio-catalysis, etc.
  • AETL comprises of four wholly owned direct subsidiaries, two subsidiaries (60% & 70%) and five step-down wholly owned subsidiaries
  • The company has 7 plants on operational basis in India and overseas.

Key Updates:

  • The company acquired in this quarter a land of 15 acre in Nasik and that they are building a modern R&D center and we are thinking about Rs.100 Crores in the next 3 years as a capital investment for the R&D center.
  • The company mentioned in the earning call of Q3 that they plan to grow at 15 – 20% on yoy basis.

 

Contribution to Revenue:

Segments 2020 % 2019 %
Human Nutrition 75 76
Animal Nutrition 12 12
Bio- Processing Segment 13 12
Total 100 100

 43% revenue is from India and 57% from Overseas.

 On the Operations front, capacity utilization is in the range of 52%-55%.

Geographical Revenue Split:

Revenue 2020 (%) 2019 (%)
Asia (ex- India) 6 4
Others 2 2
India 43 40
Europe 7 5
USA 42 49
Total 100 100

 

Management:

  • V. L. Rathi – Chairman
  • Beni Prasad Rauks – CFO

Major Holdings:

 

Subsidiaries Performance:

Subsidiaries Revenue PAT
(Rs. Crs)
Advanced Bio-Agro Tech Ltd 40 5.5
Advanced EnzyTech Solutions 9 0.5
JC Biotech Private Ltd 49 9.8
Advanced Supplementary Technologies Corporation 213 82
*Advanced Enzymes (Malaysia) Sdn. Bhd Trial basis -0.5
Advanced Enzymes Europe B.V. 17 -12
evoxx technologies GmbH 17 -6

* The said subsidiary was acquired in 2017 (incorporated in 2016) will be engaged in supplying and providing enzyme based solutions for extraction of palm oil from palm fruits.

 

Share Price Trend:

Price Snapshot:

Year Open (Rs.) High (Rs.) Low (Rs.) Close (Rs.)
2016 1210 2377 1161 1984
2017 2000 2225 244 276
2018 278 323 165 178
2019 180 225 142 165
2020 167 187 91 150

On 25th May 2017 there was a stock split of Rs 10/-to Rs 2/-

Risks:

  • Competiton Risk
  • Forex Risk
  • Customer Satisfaction
  • Duplicacy

 

 

 

 

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