Gem Aromatics

Q: Is Gem Aromatics overvalued or undervalued?

As of 14 October 2025, the valuation grade for Gem Aromatics has moved from fair to attractive, indicating a more favorable assessment of its market position. The company is currently deemed undervalued, supported by a PE ratio of 22.85, an EV to EBITDA of 15.39, and a ROCE of 19.07%. In comparison to its peers, Gem Aromatics stands out with a significantly lower valuation than Solar Industries, which has a PE of 99.77, and Gujarat Fluoroch, at 64.04.Despite the recent stock performance showing a decline of 19.48% over the past month, which contrasts with a modest 0.15% gain in the Sensex, the underlying financial metrics suggest that Gem Aromatics offers a compelling investment opportunity. With a PEG ratio of 0.00, the company's growth potential appears to be undervalued relative to its earnings, further reinforcing the conclusion that it is an attractive investment in the specialty chemicals sector.

Q: How has been the historical performance of Gem Aromatics?

Answer:The historical performance of Gem Aromatics shows a steady growth trajectory in key financial metrics from March 2024 to March 2025.Breakdown:In the fiscal year ending March 2025, Gem Aromatics reported net sales of 503.95 Cr, an increase from 452.45 Cr in the previous year. The total operating income also rose to 503.95 Cr from 452.45 Cr, driven by a rise in raw material costs to 364.14 Cr from 344.42 Cr and a notable increase in stock levels, which shifted from a decrease of 3.27 Cr to an increase of 11.80 Cr. Operating profit (PBDIT) grew to 90.14 Cr from 80.12 Cr, while profit before tax increased to 74.72 Cr from 67.59 Cr. The profit after tax saw a modest rise to 53.38 Cr from 50.10 Cr, resulting in an earnings per share (EPS) of 11.39, up from 10.69. On the balance sheet, total assets increased significantly to 532.66 Cr from 367.41 Cr, with total liabilities also rising to 532.66 Cr from 367.41 Cr. Cash flow from operating activities turned negative at -24.00 Cr compared to a positive 40.00 Cr in the previous year, while cash flow from financing activities improved to 102.00 Cr from 15.00 Cr. Overall, the financial performance indicates growth in sales and profits, although cash flow from operations has declined.

Q: When is the next results date for Gem Aromatics Ltd?

The next results date for Gem Aromatics Ltd is scheduled for 21 May 2026.

Q: Are Gem Aromatics Ltd latest results good or bad?

Gem Aromatics Ltd's latest results for Q4 FY26 indicate significant challenges for the company. The net profit has plummeted to ₹1.01 crore, reflecting a staggering 96.34% decline year-on-year. This sharp drop in profitability is concerning, especially when considering that net sales also fell by 45.40% compared to the same quarter last year, down from ₹202.22 crore to ₹110.41 crore.While there was a sequential improvement in net sales, with a 39.94% increase from the previous quarter, the year-on-year comparison reveals deeper issues, including severe margin compression. The operating margin has decreased to 14.23%, down from 22.69% a year ago, indicating rising costs and operational inefficiencies.The company's financial health is further complicated by a high tax burden of 74.94% in the latest quarter, which has significantly impacted post-tax profitability. Additionally, the operational cash flow has turned negative, raising concerns about the company's ability to sustain its operations without additional financing.Overall, the results suggest that Gem Aromatics is facing substantial operational and financial challenges, making the latest performance appear quite poor. Investors should be cautious and closely monitor the company's ability to stabilize its operations and improve profitability in the coming quarters.

Q: Should I buy, sell or hold Gem Aromatics Ltd?

Based on the current performance and financial indicators of Gem Aromatics Ltd, it would be prudent to consider selling your shares. The company has reported negative results for three consecutive quarters, with significant declines in both profit before tax and profit after tax. Additionally, net sales have dropped considerably over the last six months.While the company does show a strong ability to service its debt, indicated by a healthy EBIT to interest ratio, and has an attractive valuation with a low enterprise value to capital employed, these factors may not outweigh the concerning trends in profitability and sales.On a more positive note, the increase in promoter stake by 1.95% suggests that the management has confidence in the company's future. However, given the substantial drop in profits and sales, the overall outlook appears negative at this time. Therefore, selling may be the most advisable action.

Market Cap: Micro Cap
Industry: Specialty Chemicals
ISIN: INE06XZ01023
NSEID: GEMAROMA
BSEID: 544491
View on NSE | View on BSE

INR

156.41

-0.69 (-0.44%)

BSENSE

May 25

BSE+NSE Vol: 6.33 k

Access older stock analysis version

Results Declared: Gem Aromatics has declared results on 21 May 2026! Click here to unlock the latest financial performance

Price Point

High/Low

1Day

52 Week

Valuation

Technical

Day's Volume

CASH

6.33 k (-45.22%) Volume

Shareholding (Mar 2026)

FII

1.06%

Held by 8 FIIs

DII

4.81%

Held by 0 DIIs

Promoter

57.01%

Is Gem Aromatics overvalued or undervalued?

15-Oct-2025

As of October 14, 2025, Gem Aromatics is considered an attractive investment due to its undervaluation indicated by a PE ratio of 22.85, an EV to EBITDA of 15.39, and a ROCE of 19.07%, despite a recent stock decline of 19.48% over the past month.

View full answer

How has been the historical performance of Gem Aromatics?

15-Nov-2025

Gem Aromatics experienced steady growth from March 2024 to March 2025, with net sales increasing to 503.95 Cr and profit after tax rising to 53.38 Cr. However, cash flow from operating activities turned negative at -24.00 Cr, despite improvements in financing activities.

View full answer

When is the next results date for Gem Aromatics Ltd?

19-May-2026

The next results date for Gem Aromatics Ltd is 21 May 2026.

View full answer

Are Gem Aromatics Ltd latest results good or bad?

22-May-2026

Gem Aromatics Ltd's latest Q4 FY26 results are concerning, with a 96.34% decline in net profit to ₹1.01 crore and a 45.40% drop in net sales year-on-year, indicating significant operational and financial challenges. Investors should be cautious due to negative cash flow and high tax burdens impacting profitability.

View full answer

Should I buy, sell or hold Gem Aromatics Ltd?

22-May-2026

Which are the latest news on Gem Aromatics?

24-May-2026

Gem Aromatics Gains 1.23%: 2 Key Factors Driving the Week’s Volatility
Are Gem Aromatics Ltd latest results good or bad?

Why is Gem Aromatics Ltd falling/rising?

25-May-2026

As of 24-May, Gem Aromatics Ltd's stock price is at 156.45, down 3.16%, due to underperformance, declining investor confidence, and negative financial results over the past quarters. Despite some increase in promoter stake, the overall outlook remains negative with a significant drop in sales and long-term growth prospects.

View full answer

Compare Gem Aromatics with Similar Stocks

Indo Amines Sudarshan Pharma Jyoti Resins

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Dashboard

Poor long term growth as Net Sales has grown by an annual rate of 11.40% and Operating profit at 12.51% over the last 5 years

The company has declared Negative results for the last 3 consecutive quarters

Mojo Parameters

Loading Valuation Snapshot...

Stock DNA

Industry

Specialty Chemicals

Market cap

INR 817 Cr (Micro Cap)

P/E

572.00

Industry P/E

Dividend Yield

0.00%

Debt Equity

0.18

Return on Equity

12.35%

Price to Book

1.76

Revenue and Profits:

Net Sales:

110 Cr

(Quarterly Results - Mar 2026)

Net Profit:

1 Cr

Total Returns

Total Returns (Price + Dividend)

Dividend Yield (0%)

TimePeriod

Price Return

Dividend Return

Total Return

3 Months

-20.29%

6 Months

-8.51%

1 Year

0.0%

2 Years

0.0%

3 Years

0.0%

4 Years

0.0%

5 Years

0.0%

Gem Aromatics for the last several years.

Risk Adjusted Returns v/s

Returns Beta

Beta has not been calculated since enough price history is not available

News & Corporate Actions

News

Gem Aromatics Ltd Valuation Shifts to Very Attractive Amid Market Volatility

Gem Aromatics Ltd has witnessed a significant recalibration in its valuation metrics, moving from an attractive to a very attractive price level, despite ongoing sector headwinds and a micro-cap status. This shift, underscored by a steep decline in its price-to-earnings ratio and improved price-to-book value, invites a closer examination of the company’s price attractiveness relative to its historical averages and peer group within the specialty chemicals industry.

Read full news article

Gem Aromatics Gains 1.23%: 2 Key Factors Driving the Week’s Volatility

Key Events This Week

18 May: Stock hits lower circuit amid heavy selling pressure

22 May: Q4 FY26 results reveal sharp profit decline despite revenue recovery

22 May: Week closes at Rs.156.45 (+1.23%) outperforming Sensex (+0.50%)

Read full news article

Are Gem Aromatics Ltd latest results good or bad?

Gem Aromatics Ltd's latest financial results for Q4 FY26 indicate significant operational challenges. The company reported a net profit of ₹1.01 crores, which represents a dramatic year-on-year decline of 96.34%. This sharp drop raises concerns about the sustainability of its profitability. Additionally, net sales for the quarter totaled ₹110.41 crores, reflecting a 45.40% decrease compared to the same period last year, although there was a sequential improvement of 39.94% from the previous quarter. The operating margin also faced considerable compression, falling to 14.23%, down from 22.69% in Q4 FY25, indicating issues with cost management and operational efficiency. The profit after tax margin decreased significantly to 0.91%, down from 13.65% a year prior, further highlighting the company's struggles in converting revenue into profit. Despite these challenges, there was a sequential recovery in net sa...

Read full news article

Announcements

No announcement available

Corporate Actions

BOARD MEETING

No Upcoming Board Meetings

DIVIDEND

No Dividend history available

SPLITS

No Splits history available

BONUS

No Bonus history available

RIGHTS

No Rights history available

Key Factors

Quality key factors

Factor

Value

Sales Growth (5y)

11.40%

EBIT Growth (5y)

12.51%

EBIT to Interest (avg)

7.34

Debt to EBITDA (avg)

1.33

Net Debt to Equity (avg)

0.50

Sales to Capital Employed (avg)

0.86

Tax Ratio

25.50%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

5.88%

ROCE (avg)

14.57%

ROE (avg)

18.80%

Valuation key factors

Factor

Value

P/E Ratio

572

Industry P/E

Price to Book Value

1.76

EV to EBIT

27.07

EV to EBITDA

22.73

EV to Capital Employed

1.65

EV to Sales

2.41

PEG Ratio

Dividend Yield

ROCE (Latest)

6.09%

ROE (Latest)

5.80%

Technicals key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

RSI

No Signal

Bollinger Bands

Mildly Bearish

KST

Dow Theory

Mildly Bearish

No Trend

OBV

No Trend

Bearish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Shareholding

Shareholding Snapshot : Mar 2026

Shareholding Compare (%holding)

Majority shareholders

Promoters

Pledged Promoter Holdings

None

Mutual Funds

Held by 0 Schemes

FIIs

Held by 8 FIIs (1.06%)

Promoter with highest holding

Parekh Family Trust (20.29%)

Highest Public shareholder

Doterra Enterprises S.a.r.l. (18.36%)

Individual Investors Holdings

14.69%

Financial

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Quarterly Results Snapshot (Standalone) - Mar'26 - QoQ

Mar'26

Dec'25

Change(%)

Net Sales

112.24

83.90

33.78%

Operating Profit (PBDIT) excl Other Income

15.05

7.63

97.25%

Interest

1.52

1.71

-11.11%

Exceptional Items

0.00

Standalone Net Profit

11.87

4.21

181.95%

Operating Profit Margin (Excl OI)

13.41%

9.09%

4.32%

Values in Rs Cr.

Compare with Peers

Net Sales

QoQ Growth in quarter ended Mar 2026 is 33.78% vs -14.74% in Dec 2025

Standalone Net Profit

QoQ Growth in quarter ended Mar 2026 is 181.95% vs 2.43% in Dec 2025

All Quarterly Results

Half Yearly Results Snapshot (Standalone) - Sep'25

Sep'25

Sep'24

Change(%)

Net Sales

174.80

201.58

-13.29%

Operating Profit (PBDIT) excl Other Income

16.57

25.40

-34.76%

Interest

6.11

2.05

198.05%

Exceptional Items

0.00

Standalone Net Profit

10.63

16.86

-36.95%

Operating Profit Margin (Excl OI)

9.48%

12.60%

-3.12%

Values in Rs Cr.

Compare with Peers

Net Sales

Not Applicable: The company has declared_date for only one period

Standalone Net Profit

Not Applicable: The company has declared_date for only one period

All Half Yearly Results

Nine Monthly Results Snapshot (Standalone) - Dec'25

Dec'25

Dec'24

Change(%)

Net Sales

258.70

290.70

-11.01%

Operating Profit (PBDIT) excl Other Income

24.20

34.19

-29.22%

Interest

7.82

3.99

95.99%

Exceptional Items

0.00

Standalone Net Profit

14.84

21.76

-31.80%

Operating Profit Margin (Excl OI)

9.35%

11.76%

-2.41%

Values in Rs Cr.

Compare with Peers

Net Sales

Not Applicable: The company has declared_date for only one period

Standalone Net Profit

Not Applicable: The company has declared_date for only one period

All Nine Monthly Results

Annual Results Snapshot (Consolidated) - Mar'26

Mar'26

Mar'25

Change(%)

Net Sales

366.47

503.95

-27.28%

Operating Profit (PBDIT) excl Other Income

40.75

88.45

-53.93%

Interest

12.70

8.09

56.98%

Exceptional Items

0.00

Consolidate Net Profit

1.43

53.38

-97.32%

Operating Profit Margin (Excl OI)

11.12%

17.55%

-6.43%

Values in Rs Cr.

Compare with Peers

Net Sales

YoY Growth in year ended Mar 2026 is -27.28% vs 11.38% in Mar 2025

Consolidated Net Profit

YoY Growth in year ended Mar 2026 is -97.32% vs 6.55% in Mar 2025

All Annual Results

Company CV

About Gem Aromatics Ltd

Gem Aromatics Ltd

Micro Cap

Specialty Chemicals

No Details Available.

Company Coordinates

No Company Details Available