Advanced Enzyme Technologies Ltd - The Enzyme company

(AmitContrarian) #63

Very good blog on Adv Enzymes LTD, Seems like it was trading at very high valuation & now it seems to be at fair valuation .

(neil_loamas) #64

now it seems to be at fair valuation

for FY19 or FY20?

(rollnball) #65

Whats going on with thier shareholders pleding teh share situation ?
Would be great to know if someone can share thier insight into that situation and how it effect us minotiry shareholders ?

(Jiitt007) #66

Could you pls share the source of your image…

(neil_loamas) #67

Could you pls share the source of your image…

It is from screener like tool called

(phreak) #68

At current prices around Rs.230 and a market cap of 2500 Cr, if management’s guidance of 380-400 Cr topline is to believed (170 in first half achieved and 210 in second half - they have done 110 already so we can expect 100 Cr topline in Q4), a bottomline of 95-100 Cr looks possible and we are trading at around FY18E P/E of 25. Enough has been said about the moat and niche business but the valuations always kept me away. This may not be a great bargain but relatively based on the steep valuations it commanded last year, what it is trading right now at seems very reasonable.

Disc: Invested recently

(pranav25) #69

I feel that the palm oil extraction plan, if executed properly could be a major game changer for the company. Malaysia and Indonesia together account for 90% of the world’s total palm oil production and AETL has been granted a patent in Indonesia. In addition, as we know, the company had also acquired a Malaysian company which should help with building the business in the local market.

A factor that could adversely affect the above is the world’s growing concerns regarding the environmental damages caused due to palm oil extraction. A mere google search for palm oil reveals how damaging it is to the forests. That being said, as of now palm oil is so deeply ingrained in everyday products that a sudden shift to other alternatives is all but impossible. What rather is quite likely to happen is that oil extraction process might need to change and become less damaging by following certain guidelines. How this might exactly end up affecting AETL’s plans I’m not too sure, but I feel that some more research into the future of palm oil extraction will be helpful to us as investors.

The below presentation sums up the company’s position and progress with regards to it’s palm oil endeavours quite well. What remains to be seen is whether they are able to monetize their plans efficiently and as stated by FY19/20.