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Advanced Enzymes stock may rise 40% in one-year time frame

BusinessAdvanced Enzymes stock may rise 40% in one-year time frame

Advanced Enzymes Technologies Ltd is the largest Indian enzyme company engaged in the research and development, manufacturing and marketing of proprietary products developed from indigenous enzymes and probiotics. Enzyme helps consumers access side-effect free healthcare, farmers enhance nutrition for animals, and the industry to replace traditional thermal-chemical-mechanical processes into enzyme passed processes. Many chemical transformation processes used in various industries have inherent drawbacks from a commercial and environmental point of view. These drawbacks can be eliminated by using enzymes.

Enzymes are biocatalysts that accelerate a reaction producing desired results in biological reactions and have gathered a special attention owing to its wide applications. They are employed in research and technology, food and animal feed, textiles and detergents, pharmaceuticals and biotechnology, manufacturing industries, paper and pulp processing, leather processing and agriculture. Their application in the manufacturing processes results in significant cost reductions due to limited energy consumption. The enzymes market is segmented on the basis of type, source, reaction type, application, and region. On the basis of type, the market is fragmented into protease, carbohydrase, lipase, polymerase and nuclease. Carbohydrase accounts for the largest global market share and is attributed to the fact that carbohydrase is the most prominent type of enzyme used in pharmaceutical and food industries. On the other hand, polymerase and nuclease enzymes possess highest growth potential in the future. Health benefits offered by proteases include boosting the immune system, preventing inflammatory bowel diseases and curing skin burns and stomach ulcers. The product demand in the animal feed segment is driven by fodder efficiency, upkeep of gut health and low costs whereas growing diseases have compelled farmers to use high quality animal forage. Lipases act as a major product in production of biodiesel due to its increased capability to process fatty acids and glycerides, while the pulp and paper market is driven by its usage in numerous applications such as cleaning of paper, drainage improvement and coating of starch.  India enzymes market is dominated by Novozymes, DuPont India and Advanced Enzyme Technologies Limited. The stock of Advanced Enzymes Technologies is currently poised virtually at its 52-week high and trading at Rs 216 on the bourses. The company’s June end quarterly financial results were quite decent in these Covid times and the future is extremely bright for its products. Analysts are betting that investors should include the Advanced Enzymes Technologies stock in their portfolio for a 40% price appreciation in the next one-year time horizon.

Rajiv Kapoor is a share broker, certified mutual fund expert and MDRT insurance agent.

 

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