Fundamentals

ADVANCED ENZYME TECHNOLOGIES

Ticker : 540025 
BUY: Rs. 181.20 
Target: Rs. 204

Advanced Enzyme Technologies is the largest Indian enzyme company and is engaged in research, development, manufacturing and marketing of over 400 proprietary products developed from more than 68 indigenous enzymes and probiotics. During Q3FY19, the consolidated revenue came in at Rs 101.74 crore, down 6 per cent YoY from Rs 108.18 crore. The PAT for the company came in lower by 4.37 per cent YoY to Rs 25.35 crore from Rs 26.51 crore last year. The long term prospects of the company appear positive on the back of diversification into newer industries, JV and new patents. The company’s strategy to increase utilisation from industry and geographical diversification augurs well for the future growth and margins. Considering all these factors, we recommend it as a BUY.



COFFEE DAY

Ticker : 539436 
BUY: Rs.304.50 
Target: Rs. 342

The company primarily operates café chain outlets under the Café Coffee Day (CCD), The Lounge and The Square brand names. The company also sells coffee beans and powder for household consumption restaurants and eateries via Coffee Day Fresh and Ground outlets and also operation of kiosks under the brand name Coffee Day Xpress as well as vending machines under the brand name Coffee Day Beverages. During Q3FY19, the standalone revenues stood at Rs 11.72 crore, down 45.88 per cent as against Rs 21.66 crore YoY. The company reported a quarterly net loss of Rs. 19.23 crore for Q3FY19 as against Rs. 13.16 crore in Q3FY18. The per capita consumption of coffee in India remains low at less than 100 grammes versus 4 kg in the United States and 9 kg in Finland. Considering the long runway for growth, we recommend a BUY.