Advanced Enzyme Technologies Ltd - The Enzyme company


(Manohar T. Patil) #42

Investor presentation for Q1 results

http://advancedenzymes.com/pdf/Quarterly%20Updates/Financial%20Results/Presentations/Advanced%20Enzymes%20Earnings_PPT%2011-09-2017.pdf

The management in conference call has explained the reason for decline in revenue was due to top most client not purchasing adequate in Q1. But they expect even the top account is expected to grow 10-15% this year. They guided for the annual revenue for FY18 at 380 - 400 Crores.

Disclaimer - Invested at 5% of my portfolio


(Jiten Parmar) #43

Anyways, I have said what I have wanted to earlier. Company is good. But, I would definitely not trust what management is saying. And would only venture into it, when I see lot of margin of safety. Which I donā€™t see now.


(Prasad India) #44

Agree completely. Definitely a good company. Commanding 38 PE for a 15-20% compounder. A moat with less MOS. If the acquisitions and mergers click then the rate of growth may be higher.


(Kumar Saurabh) #45

Convinced look too strong word when every quarter promoter gives some reason n promises a great quarter next time. Reasons nay be genuine or cooked up but they have scored a big 0 on trust factor n ability to live up to words I believe based last 3 quarters of commentary . Disc : had a tracking position n exited few months back


(bbbhutra) #46

Given the current valuation results doesnā€™t seem encouraging. With market at new highs its always better to stay sideways until clear picture emerge. I will re-look at the company post 1-2 quarter results or at Rs.200 whichever comes 1st. Seems overvalued at the current price.


(jajushobhit) #47

Though I believe in their business but the behavior of the promoters has not been comforting to say the least. They felt the need to split the share, within one year from the listing dateā€¦tells their obsession with the stock price. They have at multiple occasions over promised and under delivered on operational performance, which confuses and irritates investors. Further, the poor attendance of 2/3 of the promoters on the board for last two years also raises concerns over the engagement of the management with the board.

Disclosure:
Invested in IPO

SJ


(neil_loamas) #48

After reading multiple posts here, also managements delays for quarterly results, I am turning negative on this otherwise good company. Definitely, they have high entry barrier and tech-moat, but some points make me wonder:

  1. Why Sri Sri Ravishankar trust invested in this company?
  2. Why management delays results?
  3. I am not able to understand why there are so many subsidiaries and new acquisitions and restructuring this subsidiary chain.

I am waiting for Q2FY18 results and then decide.
Disclosure: Invested 2.5% of my pf.


(Jiten Parmar) #49

The Rathiā€™s are ardent Art of Living followers.


(chetanbharath) #50

There is a lot of negative sentiment about the managementā€™s guidance because one ā€œmajor customerā€ who suddenly gave dwindling volumes.

Also, the fact that Novozymes is the undisputed leader. Coupled by the fact that when enzymes is a small fraction of the cost of making the product, why would anyone switch loyalties.

Both the above are fair arguments. Knowing the above, I have still went ahead and invested about 10% of my pf. Reasons:

Firstly, I love the fact that the promoters itself are the sceintists / technocrats. For this fact I give immense weightage, compared to ā€œhired brainsā€, which might not stay long with the company.

Secondly, Enzymes are a natural catalyst, replacing chemicals. See the way the world is going, and one would realize this is the future!

Thirdly, they have multiple patents, a global player and no pricing pressureā€¦an awesome combination!

But with all this, why arent they growing exponentially? Enzymes are now being commerciaIized in detergents, animal feed, nutraceuticals & health careā€¦guess the whole enzyme market would need some time to penetrate into more products in a deeper way. Like how the palm oil enzyme is being developed by the company for 2018-19.

I wouldnt expect this to be a multibagger, but I have a lot of conviction that this would be a good compounder. Offcourse, management is not yet tested over time. Since they have increased stake this year, I would not be too worried on this count.

Disc: Invested.


(neil_loamas) #51

Just to note: The merit of holding patents should be completely judged based on nature of the industry. Ex. getting patents in biochemical products, chemical products is easier than getting patents in hardware IC design.


(spvk1) #52

http://www.bseindia.com/corporates/ann.aspx?scrip=540025

Quarterly result.


(Contrarian) #53

If they screw up on this - Stock will tank for sure and if they achieve this then this is already discounted in the price today.

May be if they achieve 380 - 400 Cr topline and 100 Cr of net profits then may be 15% upside if stocks going to trade 35 times earnigs.


(jajushobhit) #54

Canā€™t agree more

Regards
SJ


(AmitContrarian) #55

Any news or what ? Stock went up drastically with good volumes.


(Anand Sasidharan) #56

Hi.
A big chunk of cash/cash equivalents are in current account. They could add interest income by investing it in FD or other instruments. Any idea what the reason could be?
Dicl. Not invested. Tracking closely.

-Anand


(Sarabjeet Singh) #57

Decent results posted by the company

image

Results and Investor PPT:

http://www.bseindia.com/xml-data/corpfiling/AttachLive/f0c226c2-71d2-4d80-99d9-09521307e3f4.pdf

Disc : Invested and added more in this recent fall