Advanced Enzyme Technologies Limited

Basic Materials — Specialty Chemicals · NSE

₹268.30+₹5.40 (+2.05%)

DalalBaazaar Score

69 / 100

🟢 Good

Verdict

REASONABLE

Risk

High

Driven by high debt relative to equity, micro-cap size, which brings thin liquidity, falling profits.

In simple words: Reasonable but unspectacular business quality, though profits are falling even as sales grow. Debt is the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 6:09 pm

Mixed / neutral. No major red flags jump out, but nothing here screams "obviously cheap" either. This is a name that needs a peer comparison and a view on near-term earnings triggers before sizing a position.

Understanding the Business

Company site ↗

The 60-second version of Advanced Enzyme Technologies Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

Advanced Enzyme Technologies Limited, together with its subsidiaries, engages in the research, development, manufacture, and marketing of enzymes and probiotics in India, Europe, the United States, Asia, and internationally.

IndustrySpecialty Chemicals

SectorBasic Materials

Employees409

Annual revenue₹745 Cr

How does it make money?

Turns over ₹745 Cr a year. Of every ₹100 of sales, about ₹23 reaches shareholders as profit, with ₹35 left at the operating level before interest, tax and depreciation. Each of its 409 employees supports ₹1.82 Cr of revenue a year, the signature of a capital- or asset-led business.

EBITDA margin34.7%

Net margin22.6%

Revenue / employee₹1.82 Cr

Who are its competitors?

The closest listed comparisons in its industry are ASIAN PAINTS LIMITED, PIDILITE INDUSTRIES LTD, SRF LTD, UPL LIMITED. These are the companies its valuation and returns are measured against elsewhere in this report.

ASIAN PAINTS LIMITEDP/E 46.9x · ROE 22.3%

PIDILITE INDUSTRIES LTDP/E 57.8x · ROE 24.4%

SRF LTDP/E 33.8x · ROE 15.4%

UPL LIMITEDP/E 21.5x · ROE 6.1%

What is its competitive advantage?Little sign of one

Returns on capital of 13.6% are at or below what the capital likely costs. That is the financial pattern of a business competing largely on price, where advantage has to come from execution rather than position.

ROCE13.6%

ROE10.3%

Peer median ROE22.3%

What has been driving growth?

Growth has come mainly from selling more, rather than from keeping more of each sale. Over 3 years revenue moved +38% while net margin moved +16% relative to itself. What this cannot tell you is which products, customers or geographies did the work — that lives in the segment disclosures of the annual report.

Revenue effect+38%

Margin effect+16%

DalalBaazaar Score

69/ 100

Good

Weighted across six categories. Every point is explained below.

✓ Beta of 0.70 — historically steadier than the index
✗ Micro Cap: thinner liquidity and sharper drawdowns are normal
✗ High leverage magnifies any downturn in earnings
✓ Profits have been consistent from year to year

Quality vs. Valuation

Company Quality

70/ 100

Good

How good the business is, ignoring the share price entirely.

Valuation

74/ 100

Cheap

What you are being asked to pay, ignoring how good the business is.

A good business currently available at an undemanding price — the combination this framework is built to look for.

Historical Valuation

Current P/E

18.1x

3Y Median

29.4x

40 monthly readings · mean 30.4x · range 17.7x–44.2x

Sector Median

40.4x

median of 4 sector peers

🟢Current valuation is approximately 38% below its 3y median of 29.4x. Cheaper than its own history, which is worth a reason too: the market may be pricing in something the backward-looking numbers do not show.

🟢Against its sector it trades 55% below the peer median of 40.4x.

vs. its own history

Cheap

29.4x median over 40 months · -38%

vs. sector peers

Cheap

40.4x median of 4 peers · -55%

vs. generic bands

Fair

15x–35x

P/E (Trailing)

18.1x

P/B

1.84x

EV/EBITDA

11.0x

PEG

1.07

Dividend Yield

0.50%

What's Good / What's Bad

🟢 What's Going Well3

Return on capital is rising
ROCE has improved from 10.6% to 13.6%.
Valuation below its historical average
At 18.1x the stock trades 38% below its own median of 29.4x.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention0

Nothing stands out as clearly deteriorating on the years of data available.

Red Flags

1 item require attention · 1 high

🔴High leverageFinancial
Debt/Equity of 1.90x — earnings must service borrowings before shareholders see anything.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Priced below its own history
The stock trades 38% below its own median multiple. If the business performs as it has and simply re-rates back to normal, that gap is return on its own.
Cheaper than its peers
It trades 55% below the sector median. Either the market sees a problem the numbers do not show, or the discount closes.
Earnings have proved durable
Profitable in every one of the last 4 reported years. Consistency lowers the risk that any single bad year is structural rather than cyclical.

🔴 Bear CaseWhat could go wrong?

Leverage amplifies any setback
Debt/Equity of 1.90x. Interest is payable whether or not the business has a good year.
Size brings its own risk
Micro Cap businesses are thinly traded, so exits are harder in a falling market and single events move the price more than they would for a larger company.

🟡 Key Things to WatchMeasurable tripwires, set against where this company stands today

1Revenue growth stays above 8% a year✓ 11.3% CAGR
Latest reported year was 2.1%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 33%✓ 34.7%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Free cash flow remains positive✓ ₹104 Cr
Profit that never becomes cash eventually stops being profit.
4Debt / EBITDA stays below 2x✓ 0.1x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
5ROCE stays above 11%✓ 13.6%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

6 / 11 checks passed

✗ Strong return on equity (ROE ≥ 15%)
✗ Strong return on capital employed (ROCE ≥ 15%)
✓ Healthy net margin (≥ 10%)
✓ Generates positive free cash flow
✗ Manageable leverage (Debt/Equity < 1.0)
✓ Adequate short-term liquidity (Current Ratio ≥ 1.0)
✓ Revenue growing year-over-year
✗ Profit growing year-over-year
✓ Not trading at an extreme valuation (P/E < 40x)
✓ Not buying right at the 52-week high
✗ Short-term technical trend isn't bearish

Price history

Quick Metrics

2 good · 7 neutral · 2 weak

Market Cap

₹2,934 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

18.1x

Fair

Fairly valued against the generic band

P/B Ratio

1.84x

Fair

Moderate premium to the company's book value

EPS (TTM)

₹14.81

Profitable

Profitable on a per-share basis

ROE

10.3%

Moderate

Moderate capital efficiency

ROCE

13.6%

Moderate

Moderate return on the capital in the business

Debt/Equity

1.90x

High

High leverage

Revenue Growth (YoY)

2.1%

Modest

Modest growth

Profit Growth (YoY)

-7.3%

Falling

Profits are shrinking

Dividend Yield

0.50%

Modest

Small cash return — most of the return has to come from the price

Free Cash Flow

₹104 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

CMP

₹268.3

P/E (Forward)

14.6x

Improving

Below the trailing multiple — the street expects earnings to grow into the price

Operating Margin

21.6%

Good

Healthy core-business profitability

Net Margin

22.1%

Good

Strong bottom-line conversion

Current Ratio

9.78

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.70

Defensive

Steadier than the market

52W Range Position

10%

Near low

Near its 52-week low

Technical Snapshot

SMA 20 / SMA 50

278.0 / 291.1

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

20.7

Oversold zone

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹540 Cr	₹623 Cr	₹637 Cr	₹745 Cr	+11.3%
EBITDA	₹187 Cr	₹235 Cr	₹223 Cr	₹259 Cr	+11.4%
EBITDA Margin	34.6%	37.7%	35.0%	34.7%	—
PAT (Net Profit)	₹106 Cr	₹133 Cr	₹131 Cr	₹169 Cr	+16.9%
EPS	₹9.45	₹11.92	₹11.71	₹15.06	+16.8%
ROE	8.6%	10.1%	9.2%	10.3%	—
ROCE	10.6%	13.3%	12.5%	13.6%	—
Total Debt	₹33 Cr	₹47 Cr	₹39 Cr	₹32 Cr	-1.5%
Free Cash Flow	₹102 Cr	₹94 Cr	₹108 Cr	₹104 Cr	+0.7%

🟢 Revenue has grown at 11.3% a year over 3 years.

🟢 EBITDA has grown at 11.4% a year over 3 years.

🟡 EBITDA Margin has held roughly flat at 34.7% over 3 years.

🟢 PAT (Net Profit) has grown at 16.9% a year over 3 years.

🟢 EPS has grown at 16.8% a year over 3 years.

🟢 ROE has risen from 8.6% to 10.3% over 3 years (+1.8 pts).

🟢 ROCE has risen from 10.6% to 13.6% over 3 years (+3.0 pts).

🟡 Total Debt has been broadly flat over 3 years (-1.5% a year).

🟡 Free Cash Flow has been broadly flat over 3 years (0.7% a year).

Balance Sheet & Cash Flow — FY2026

Total Assets

₹1,839 Cr

Total Liabilities

₹156 Cr

Total Debt

₹32 Cr

Cash & Equivalents

₹109 Cr

Operating Cash Flow

₹157 Cr

Capex

-₹52 Cr

Shareholding (proxy)

Institutional Holding

18.7%

Insider Holding

55.5%

Corporate Actions

Dividend Rate

₹1.35

Ex-Dividend Date

24 Jul 2026

Analyst Consensus

Target Price (Mean)

₹370

+37.9% vs CMP

Target Range

₹370 – ₹370

Peer Comparison

Company	P/E	ROE
ASIAN PAINTS LIMITED	46.9x	22.3%
PIDILITE INDUSTRIES LTD	57.8x	24.4%
SRF LTD	33.8x	15.4%
UPL LIMITED	21.5x	6.1%

Recent News

1 positive1 mixed4 general

Advanced Enzyme Tech buys 26,426 shares Oct 16, cumulative 20.3 lakh

scanx.trade, 16 Oct

ADVANCED ENZYME TECHNOLOGIES Stock/Share price , NSE/BSE Forecast News and Live Quotes

Equitymaster, 15 Oct

If EPS Growth Is Important To You, Advanced Enzyme Technologies (NSE:ADVENZYMES) Presents An Opportunity

Simply Wall Street, 30 Jun

Advanced Enzyme Approves Buyback At ₹500 Per Share Amid Q1 Profit Of ₹37.1 Crore

Sahi, 08 AugCapital return

🟢Potentially positiveCash or shares returned to holders. A buyback is only good value if the shares were cheap when bought.

Advanced Enzyme Technologies Share Price Falling: Key Reasons, Analysis and 2026 Recovery Outlook

Univest, 05 MayPrice move

🟡Mixed / dependsA price move rather than a change in the business. If the figures on this page have not moved, the fall is either an opportunity or news they have yet to catch up with.

Advanced Enzyme Technologies Ltd Actuals & Estimates (NSE:ADVENZYMES)

TradingView, 26 Jun

Watch Items

Trading very close to its 52-week low — worth checking whether this reflects a temporary setback or a structural problem.
Cross-check against the company's latest quarterly filing / investor presentation before acting.
RSI is in oversold territory — could mean either a bargain or a stock still falling for good reason. Check the 'why' before assuming reversal.

DalalBaazaar Thesis

🟢Business QualityStrong14.5/20

🟢Financial HealthStrong13.9/20

🟢GrowthStrong13.3/20

🟢ProfitabilityStrong10.9/15

🟢ValuationAttractive10.7/15

🟡RiskModerate5.3/10

Attractive on both counts

A good business currently available at an undemanding price — the combination this framework exists to look for. The work left is qualitative: whether the advantage the numbers imply is one you can identify and expect to last. 1 high-severity red flag sits above this conclusion and should be read first.

This thesis breaks if

✓Revenue growth stays above 8% a year11.3% CAGR
✓EBITDA margin holds above 33%34.7%
✓Free cash flow remains positive₹104 Cr
✓Debt / EBITDA stays below 2x0.1x
✓ROCE stays above 11%13.6%