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 situation of Gem Aromatics Ltd, it would be advisable to consider a strong sell position. The company has demonstrated weak long-term fundamental strength, with a modest 12.51% CAGR growth in operating profits over the last five years. Recent performance has been concerning, as it has reported negative results for three consecutive quarters, with significant declines in profit before tax and profit after tax compared to previous quarters.Additionally, the net sales over the last six months have decreased by 36.70%, indicating challenges in revenue generation. Although the return on equity is at 18.80%, which is decent, it suggests low profitability relative to shareholders' funds.On a more positive note, there has been a rise in promoter confidence, with an increase in their stake by 1.95%. This could indicate a belief in the company's potential for recovery or growth in the future. However, the overall financial indicators suggest that selling might be the more prudent choice at this time.

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

INR

145.70

-4.4 (-2.93%)

BSENSE

Jun 03, 03:30 PM

BSE+NSE Vol: 34.76 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

Technical Trend Update: Gem Aromatics witnessed a change in Technical Grade on 01 Jun 2026. Click here to discover latest technical change!

Mojo Score Change: Gem Aromatics has changed its score on 25 May 2026. Click here to unlock latest mojo score!

Price Point

High/Low

1Day

52 Week

Valuation

Technical

Day's Volume

CASH

34.76 k (-39.76%) 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?

27-May-2026

Why is Gem Aromatics Ltd falling/rising?

03-Jun-2026

As of 02-Jun, Gem Aromatics Ltd's stock price is currently at 150.10, showing a short-term rise after a trend reversal, but it has a year-to-date decline of 10.47% and weak long-term fundamentals. Despite recent gains and increased promoter confidence, the stock is trading below moving averages and has seen a significant drop in investor participation.

View full answer

Which are the latest news on Gem Aromatics?

03-Jun-2026

Gem Aromatics Ltd Technical Momentum Shifts Amid Weak Market Returns
Gem Aromatics Ltd is Rated Strong Sell

Compare Gem Aromatics with Similar Stocks

Fairchem Organic Sacheerome Valiant Organics

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Dashboard

Weak Long Term Fundamental Strength with a 12.51% CAGR growth in Operating Profits over the last 5 years

The company has been able to generate a Return on Equity (avg) of 18.80% signifying low profitability per unit of shareholders funds

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 776 Cr (Micro Cap)

P/E

541.00

Industry P/E

Dividend Yield

0.00%

Debt Equity

0.18

Return on Equity

5.80%

Price to Book

1.70

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

-26.89%

6 Months

-6.0%

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 Technical Momentum Shifts Amid Weak Market Returns

Gem Aromatics Ltd, a micro-cap player in the specialty chemicals sector, has experienced a notable shift in its technical momentum, moving from a mildly bearish stance to a sideways trend. Despite a recent downgrade to a Strong Sell rating by MarketsMOJO, the stock’s technical indicators reveal a complex picture of mixed signals that investors should carefully analyse before making decisions.

Read full news article

Gem Aromatics Ltd is Rated Strong Sell

Gem Aromatics Ltd is rated Strong Sell by MarketsMOJO, with this rating last updated on 25 May 2026. However, the analysis and financial metrics discussed below reflect the company’s current position as of 01 June 2026, providing investors with the latest insights into the stock’s fundamentals, valuation, financial trends, and technical outlook.

Read full news article

Gem Aromatics Ltd Falls 4.76%: Quality Concerns and Valuation Shifts Shape the Week

Key Events This Week

25 May: Valuation upgraded to Very Attractive despite price dip

26 May: Quality metrics deteriorate, Mojo Grade downgraded to Strong Sell

29 May: Week closes at Rs.149.00, down 4.76% for the week

Read full news article

Announcements

Announcement under Regulation 30 (LODR)-Earnings Call Transcript

26-May-2026 | Source : BSE

Transcript of Conference call for Investors and Analysts

Announcement under Regulation 30 (LODR)-Newspaper Publication

22-May-2026 | Source : BSE

Newspaper Publication.

Announcement under Regulation 30 (LODR)-Analyst / Investor Meet - Outcome

22-May-2026 | Source : BSE

Audio Recording of Conference Call for Investor and Analysts

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

541

Industry P/E

Price to Book Value

1.67

EV to EBIT

25.74

EV to EBITDA

21.62

EV to Capital Employed

1.57

EV to Sales

2.29

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

Bearish

KST

Dow Theory

Mildly Bearish

Mildly Bullish

OBV

Mildly Bearish

No Trend

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