Q3FY21 Result Update - Advanced Enzyme Technologies - ICICI Direct

Q3 revenues grew 23.0% YoY to Rs. 137.7 crore on the back of 34.9% YoY growth in human healthcare (HC) segment to Rs. 108.9 crore. Animal HC saw a decline of 29.5% YoY to Rs. 10.5 crore whereas industrial processing segment grew 12.3% YoY to Rs. 18.3 crore. EBITDA margins expanded 97 bps YoY to 48.2% with lower employee & other expenditure being partly offset by lower gross margins. Hence, EBITDA grew 25.6% YoY to Rs. 66.4 crore. PAT grew 28.2% YoY to Rs. 43.1 crore in-line with operational performance.

Valuation & Outlook

AET reported strong Q3 results above I-direct estimates on all fronts. The company is poised to capture the growing opportunities in the enzymes and probiotics space backed by proven capabilities and stable financials that have been fairly consistent, thanks to a mix of organic and inorganic growth strategy employed by the management. Strong margins and healthy return ratios reflect the pricing power and balance sheet strength of the company. Going ahead, the management intends to augment its R&D capability for better facilitation and strengthening of in-house R&D capability, which bodes well in the long run in its quest to improve scalability and a possible foray into more complex enzymes. We maintain BUY with a revised target price of Rs. 480 (earlier Rs. 425) based on 25x FY23E EPS of Rs. 19.2.

For details, click on the link below: https://www.icicidirect.com/mailimages/IDirect_AdvancedEnzymes_Q3FY21.pdf

Shares of Advanced Enzyme Technologies Ltd was last trading in BSE at Rs.360.6 as compared to the previous close of Rs. 375.85. The total number of shares traded during the day was 45074 in over 2138 trades.

The stock hit an intraday high of Rs. 379 and intraday low of 358. The net turnover during the day was Rs. 16521945.

Source : Equity Bulls

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