Advanced Enzyme Technologies (AETL) is one of the largest Indian enzymes manufacturing company, engaged in the research and development, manufacturing and marketing of 400+ proprietary products developed from 60 indigenous enzymes. GEPL Capital Research has recommended 'Subscribe' to IPO of Advanced Enzyme Technologies.

Having more than two decades of fermentation experience in the production of enzymes, AETL ranks among the top 15 global companies in terms of enzyme sales, and have the second highest market share domestically, next only to the world's largest enzyme company Novozymes.

Commenting on the investment rationale, the stock broker said, ''Advanced Enzyme technologies stands to gain from operating leverage. At a P/E of 28.4x we believe that Advanced Enzyme technologies Ltd demands a discount to its domestic peers. We assign a Subscribe rating to the IPO.

The company is significantly dependent on foreign Subsidiaries incorporated in North America for the sale and marketing of most products in these regions. Any disruption in operations of these foreign Subsidiaries could have a material adverse effect on business, prospects, financial condition and results of operations.

They have not entered into any long term or definitive agreements with their customers. If customers choose not to source their requirements from them, their business, financial condition and results of operations may be adversely affected.''

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