Shares of enzymes manufacturer Advanced Enzyme Technologies Ltd. jumped the most since February this year after Nalanda India Equity Fund increased its stake in the company. The fund acquired a 2.6 percent stake or 29 lakh shares in the company through a large trade on Monday, showed data from the exchanges.
The sellers in this transaction were the company's promoters, who sold 25.7 lakh shares or 2.5 percent of the total equity. As of the quarter ended June, promoters held a 52.7 percent stake in the company.
Nalanda India Equity Fund has been consistently increasing its stake in the company as evident from the data. As of the June quarter, the fund held a 6.2 percent stake in the company worth nearly Rs 200 crore. It had increased its stake in the March quarter this year to 6.1 percent from 4.7 percent last year.
Advanced Enzyme is a market leader in the manufacturing of enzymes and probiotics. The largest Indian Enzyme company is engaged in the research, development, manufacturing, and marketing of over 400 proprietary products. At the end of FY22, the Human Nutrition business was the biggest revenue contributor at 68 percent, followed by Bio Processing and Specialized Manufacturing.
India and America are the two core markets of the company, who together contribute 84 percent of the overall revenue.
For the April-June period of the current financial year, the company's revenue declined 12 percent year-on-year, led by a de-growth in its core business. ICICI Direct expects the business environment to improve from the second half of FY23. It downgraded the stock to "reduce" from "hold" as it awaits normalcy to return in its core business of Human Nutrition and a better margin profile.
Shares of Advanced Enzyme Technologies are trading 13.3 percent higher at Rs 302.50 as of 10 AM.
First Published: Sept 20, 2022 11:00 AM IST
