Advanced Enzyme soars 100% over issue price

The stock hit an intra-day high of Rs 1,949, appreciated 118% compared to its issue price of Rs 896 per share.

Advanced Enzyme Technologies has rallied 8% to Rs 1,949 on the BSE in an otherwise range-bound market. The stock is trading at highest level since its listing on August 1, 2016.

With the today’s gain, the market value of Advanced Enzyme Technologies has been appreciated by 118% compared to its issue price of Rs 896 apiece.

The mutual funds holdings in one of the world’s largest enzyme makers have increased to 10.24% in September, 2016 quarter from 3.27% on July 28, 2016, the shareholding pattern data shows.

Motilal Oswal Most Focused Multicap 35 Fund (1.43%), Reliance Capital Trustee Co. Ltd-A/C Reliancesmall Cap Fund (1.35%), DSP Blackrock Micro Cap Fund (1.28%) and Motilal Oswal Most Focused Midcap 30 Fund (1.11%) are holding more than 1% stake in Advanced Enzyme Technologies at the end of September quarter.

Advanced Enzyme Technologies is the second largest enzyme company in India and amongst the Top 15 global enzyme companies with a market share of around 0.9%. The company is engaged in research & development, manufacturing and marketing of 400+ proprietary products developed from 60 indigenous enzymes

Given the Management experience in the industry and the Indian cost advantage, Angel Broking believes that the company can post robust growth going forward.

“Advanced Enzyme Technologies has reported a strong CAGR of 23.9% in net profit in-spite of the 14.4% CAGR in sales during FY2012-16, helped by high entry barriers, which also enables the company to get high margins. However, we believe that the company’s scale of operations is small in comparison to its global peers and its business is dependent on few products,” the broking firm said in IPO note.

At 02:19 pm, the stock was up 5% at Rs 1,897 on the BSE. The trading volumes on the counter more than doubled with a combined 499,375 shares changed hands on the BSE and NSE.