Advanced Enzyme Technologies (AETL) is the largest enzyme company in India, engaged in the research and development, manufacturing and marketing of 400+ proprietary products developed from 60 indigenous enzymes.

Brokerage firms Way2Wealth Research and GEPL Capital Research have recommended 'Subscribe' to IPO of Advanced Enzyme Technologies.

Commenting on the investment rationale, Way2Wealth Research, said, '''We believe the company's growing capabilities and existing capacities are in place to drive the next leg of growth. The company is currently working at 45% capacity utilisation of its existing capacity of 360CBM.  With a strong foundation in R&D and available capacity to double its production from current levels, we believe the long-term growth platform for the company is solid. A niche business model with high entry barriers and a well setup client base, we believe AETL's leadership will enable the company to grow at a faster rate in the developing markets, especially India. The company has recorded a ~10% & ~17% 3yr CAGR in its topline and PAT respectively. At the offer price band of Rs 880-896 the stock trades at ~25x its FY16 EPS of Rs 36. We advise clients to Subscribe to the issue.''

Meanwhile, GEPL Capital Research, said, ''Advanced Enzyme technologies stands to gain from operating leverage. At a P/E of 28.4x we believe that Advanced Enzyme technologies demands a discount to its domestic peers. We assign a Subscribe rating to the IPO.''

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