Mehabe score: 2 G Factor: 3 Piotski Score: 7 The stock has a rating SELL. The mehabe team score is reflective of its fundamental and technical merits. A rating above 8 is considered good buy. The stock has a G-Factor of 3 and Piotski score of 7.
Description
Advanced Enzyme Technologies Limited is engaged in the business of manufacturing and sales of enzymes.[1]Site:ADVENZYMESMain Symbol:ADVENZYMES
Stock trades at 384.0, below its 50dma 390.32. However it is trading above its 200dma 371.45. The stock remains weak in the short term due to near term bearish momentum. However overall bullish structure remains intact. Price action will further build up as it moves above its dma50, currently situated at 390.32.
The 52 week high is at 503.70 and the 52week low is at 281.10
Price Chart
P/E Chart
Sales and Margin
Strengths
– is almost debt free.
Weakness
– The company has delivered a poor sales growth of 11.36% over past five years.
-Promoter holding has decreased over last 3 years: -14.79%
Competition
– The industry trades at a mean P/E of 27.8x. Clean Science trades at the industry’s max P/E of 110.51x. ADVENZYMES trades at a P/E of 28.6x
– Industry’s mean G-Factor is 3.2 while the mean Piotski score is 8.0. ADVENZYMES has a G-Factor of 3 and Piotski scoreof 7.
– Average 1 month return for industry is 0.6%. The max 1- month return was given by Solar Industries: a return of 11.59 %
Quarterly Results
Sales for period ended Sep 2021 is Rs 127.0 cr compared to Rs 120.0 cr for period ended Sep 2020, a rise of 5.8%
Operating Profits reported at Rs 49.0 cr for period ended Sep 2021 vis-vis 59.0 for period ended Sep 2020 .
Operating Margins contracted -1058.4 bps for period ended Sep 2021 vis-vis Sep 2020 .
The EPS for Sep 2021 was Rs 2.66 compared to Rs 3.4 for previous quarter ended Jun 2021 and Rs 3.33 for Sep 2020
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 535.0 cr for period ended TTM vis-vis sales of Rs 502.0 cr for the period ended Mar 2021, a growth of 6.2%. The 3 year sales cagr stood at 8.4%.
Operating margins shrank to 44.0% for period ended TTM vis-vis 46.0% for period ended Mar 2021, contraction of 200.0 bps.
Net Profit reported at Rs 142.0 cr for period ended TTM vis-vis sales of Rs 146.0 cr for the period ended Mar 2021, falling 2.8%.
Company recorded a Net Profit CAGR of 8.6% over the last 3 years
Balance Sheet Statement
Cash Flow Statement
Cash Flow comments
CashFlow from operating activities was positive.
CashFlow from operating activities: Rs 163.0 cr for period ended Mar 2021 vis-vis Rs 141.0 cr for period ended Mar 2020
Sales Growth
Profit Growth Statement
Profit Growth Statement
Stock Price CAGR
Return of Equity
General Comments
– The company has had stable/constant Return on Equity (RoE) metric. The RoE on Last Year basis was 16.0% compared to 17.0% over the last 3 Years. – The stock has given a return of 27% on a 1 Year basis vis-vis a return of 26% over the last 3 Years. – The compounded sales growth on a TTM bassis is 19% vis-vis a compounded sales growth of 9% over the last 3 Years. – The compounded profit growth on a TTM basis is 15% vis-vis a compounded profit growth of 17% over the last 3 Years.
Ratios
Shareholding Pattern
– FII shareholding has remained largely constant. The Sep 2021 fii holding stood at 16.27% vis-vis 16.4% for Jun 2021 – Public shareholding has remained largely constant. The Sep 2021 public holding stood at 22.52% vis-vis 22.84% for Jun 2021
Conclusion
– is almost debt free. – The company has delivered a poor sales growth of 11.36% over past five years.
-Promoter holding has decreased over last 3 years: -14.79%
Fundamentally, the stock remains weak. The business fundamentals are on shaky ground. Weak near term results have dampened and questioned business drivers. We suggest to wait for a upturn in business performance.
Technically, the stock reflects the poor fundamentals. The stock remains below its 50 DMA 390.32 and is trading at 384.0. It has shown near term lack of bullish momentum. We suggest to observe price action. However as investors, who like to avoid timing the markets, we suggest to avoid the stock
