Emkay Global has given buy rating to Advanced Enzyme Technologies with a target price of Rs 238. The share price moved up by by 1.51 per cent from its previous close of Rs 208.80 . The stock’s last traded price is Rs 211.95.

Advanced Enzyme Technologies Ltd., incorporated in the year 1989, is a Small Cap company (having a market cap of Rs 2363.67 Crore) operating in Agriculture/Horticulture/Livestock sector.

Financials
For the quarter ended 30-06-2020, the company reported a Consolidated sales of Rs 110.50 Crore, up .21 % from last quarter Sales of Rs 110.26 Crore and up .15 % from last year same quarter Sales of Rs 110.34 Crore. The Company reported net profit after tax of Rs 34.80 Crore in latest quarter.

Investment Rationale
It is commendable that the company is holding the ground in a difficult time. The strong balance sheet, positive sentiment in Pharma and Nutrition segments, greater penetration of its top product and EVOXX churning profits (Rs21mn in FY20), all together augur well for ADVENZY’s long-term plans and enhance growth prospects, aided by both organic and inorganic opportunities. The brokerage values the stock at Sept’22E EPS (15x) and maintains Buy/OW in EAP, with a TP of Rs 238. Key downside risks are a slowdown in the US economy and a muted offtake of the top-selling product.

Promoter/FII Holdings
Promoters held 58.1 per cent stake in the company as of June 30, 2020, while FIIs held 11 per cent, DIIs 8.7 per cent and public and others 22.2 per cent.