www.hemonline.

com

BROKING | DEPOSITORY | DISTRIBUTION | FINANCIAL ADVISORY

IPO Report

Advanced Enzyme Technologies Ltd

Issue Date

20th July-22nd July 2016

Bid Lot

16 & in multiples thereof

Price Band

It is the largest Indian enzyme company which is engaged in the

research and development, manufacturing and marketing of 400+
proprietary products developed from 60 indigenous enzymes.
Co offer these products to its global clientele of more than 700
customers spanning presence across 50 countries worldwide.
Co supply products to industries like human healthcare and nutrition, animal nutrition, food processing, baking, dairy and cheese
processing, fruit and vegetable processing, cereal extraction, brewing, grain processing, protein processing, oil and fat processing,
biomass processing, textile processing, leather processing, paper &
pulp processing, bio-fuels, bio-catalysis etc.
The offer consists of offer for sale upto 4,034,470 Equity shares as
well as fresh issue consist of Rs 500 million .Proceeds from fresh
issue will be utilised for investment in Advanced Enzymes USA,
co's wholly owned subsidiary for repayment / pre-payment of certain loans availed by Advanced Enzymes USA from one of co's
Promoters and Group Companies.

Rs 880-896/Share*

Face Value

Rs 10/Share

Listing

BSE, NSE

Fresh Issue

Rs 500 Million

Offer For Sale

4,034,470 Eq Shares

QIB Category
Non Institutional Category
Retail Category
Emp Reservation

0.23# Cr Eq Shares
0.07# Cr Eq Shares
0.16# Cr Eq Shares
Eq Sh Upto Rs 2 Cr

Pre Issue Eq Shares

2.18 Cr Eq Shares

BRLM

AxisCapital , ICICI Securties

Post Issue Eq Shares

2.23# Cr Eq shares

Registrar

Link Intime

Reasons to "Invest"

Co rank among the top 15 global companies in terms of enzyme sales,

and have the second highest market share domestically, after the
worlds largest enzyme company Novozymes. Some of co's customers
include Sanofi India, Cipla, Ipca Laboratories, Alkem Laboratories, and
Emcure Pharmaceuticals.
On growth front, co has posted CAGR of more than 20% in its operating profit & profit after tax from FY12 to FY16 while on margin front ,
co is successfully able to post more than 40% margin on operating
level while it is more than 20% margin on net profit level for FY16
which is very attractive in the industry.
The enzyme industry is very concentrated and consists of very few
players as the manufacturing of same requires specialized knowledge
of enzyme fermentation and also the diverse end-user industries in
which these products and solutions are utilized. Also sufficient capital
is required to sustain research and development efforts until the
products are brought to market. With, co's promoters, having a cumulative experience of more than seven decades in the global enzyme
industry, co is well positioned to cater opportunities present in the
sector.

*: Note: Rs 86/share discount to Employee ...... #:Calculated @ upper price band.

Consolidated Financial Statements

Particulars
Revenue
Exp
Op Profit
OPM
Other Income
Depreciation
EBIT
Interest
PBT
E/O Item
PBT
Tax
PAT
Minority Int
PAT
NPM
Eq Cap
Reserves
Net Worth
Eq Shares (No)
EPS
Book Value
ROE (%)
ROCE(%)
Debt To Equity

FY12
171.74
109.46
62.28
36.26
3.14
5.50
59.92
12.24
47.68
0.00
47.68
14.02
33.67
0.33
33.34
19.41
20.73
75.23
95.97
2.07
16.08
46.29
34.74
17.58
1.83

Research Analyst: Astha Jain

FY13
220.42
130.86
89.56
40.63
3.70
7.55
85.71
9.55
76.16
0.00
76.16
25.88
50.28
1.06
49.22
22.33
21.77
140.20
161.96
2.18
22.61
74.41
30.39
24.38
0.93

FY14
239.45
135.67
103.78
43.34
1.03
9.87
94.94
13.19
81.75
54.00
27.75
6.40
21.35
1.27
20.09
8.39
21.77
144.60
166.37
2.18
9.23
76.43
12.07
27.90
0.76

FY15
223.11
132.25
90.86
40.72
1.16
9.02
83.00
9.26
73.75
0.00
73.75
22.81
50.94
0.83
50.10
22.46
21.77
188.27
210.03
2.18
23.02
96.50
23.85
25.64
0.37

Rs Cr

FY16
293.76
155.53
138.23
47.06
0.88
8.72
130.39
7.86
122.53
0.00
122.53
43.20
79.33
0.89
78.44
26.70
21.77
256.96
278.73
2.18
36.04
128.06
28.14
35.30
0.25

Subscribe

Attractive Valuation
Co is bringing the issue at price band of Rs 880-896 per share thus
converting in p/e multiple of 25-26 on post issue FY16 eps of Rs
35/share.
Though domestically co has no direct listed peer but if we compare
it internationally then co looks reasonably priced as compare to its
Novozymes.
Hence, we are recommending "Subscribe" on issue.
1

Hem Research

www.hemonline.com

www.hemonline.com
research@hemonline.com
HEM SECURITIES LIMITED
MEMBER-BSE,CDSL,SEBI REGISTERED CATEGORY I MERCHANT BANKER
Sebi Registration No For Research Analyst: INH100002250

JAIPUR OFFICE: 203-204, JAIPUR TOWERS, M I ROAD, JAIPUR-302001

PHONE- 0091 141 405 1000

FAX- 0091 141 510 1757

MUMBAI OFFICE: 14/15, KHATAU BLDG., IST FLOOR, 40, BANK STREET, FORT, MUMBAI-400001
PHONE- 0091 22 2267 1000

FAX- 0091 22 2262 5991

GROUP COMPANIES
HEM FINLEASE PRIVATE LIMITED
MEMBER-NSE

HEM MULTI COMMODITIES PRIVATE LIMITED

MEMBER-NCDEX, MCX

HEM FINANCIAL SERVICES LIMITED

NBFC REGISTERED WITH RBI

For Private Circulation Only

Hem Research

www.hemonline.com

Disclaimer & Disclosure: This document is prepared for our clients only, on the basis of publicly available information and other sources believed to be reliable. Whilst we are not soliciting any action based on this information,
all care has been taken to ensure that the facts are accurate, fair and reasonable. This information is not intended as
an offer or solicitation for the purchase or sell of any financial instrument and at any point should not be considered
as an investment advice. Reader is requested to rely on his own decision and may take independent professional advice before investing. Hem Securities Limited, Hem Finlease Private Limited, Hem Multi Commodities Pvt. Limited,
Directors and any of its employees shall not be responsible for the content. The person accessing this information
specifically agrees to exempt Hem Securities Limited, Hem Finlease Private Limited, Hem Multi Commodities Pvt.
Limited or any of its affiliates or employees from, any and all responsibility/liability arising from such misuse and
further agrees to hold Hem Securities Limited, Hem Finlease Private Limited, Hem Multi Commodities Pvt. Limited
or any of its affiliates or employees free and harmless from all losses, costs, damages, expenses that may be suffered
by the person accessing this information due to any errors and delays . The companies and its affiliates, officers, directors, and employees, including persons involved in the preparation or issuance of this material may from time to
time, have long or short positions in, and buy or sell the securities there of, company (ies) mentioned herein and the
same have acted upon or used the information prior to, or immediately following the publication.

Analyst Certification
The views expressed in this research report accurately reflect the personal views of the analyst(s) about the subject
securities or issues, and no part of the compensation of the research analyst(s) was, is, or will be directly or indirectly related to the specific recommendations and views expressed by research analyst(s) in this report.

For Private Circulation Only

Hem Research