Gem Aromatics

Why is Gem Aromatics Ltd falling/rising?

As of 10-Aug, Gem Aromatics Ltd's stock price is declining, currently at Rs 179.50, down 2.95% today and 13.10% over the past month, with bearish trading activity and reduced investor participation indicating weakening momentum.

As of 10-Aug, Gem Aromatics Ltd's stock price is falling, currently at Rs 179.50, which reflects a decrease of Rs 5.45 or 2.95%. The stock has underperformed its sector by 3.04% today and has experienced a significant decline of 8.18% over the past week, while the benchmark Sensex has only decreased by 0.12% during the same period. Additionally, the stock has dropped 13.10% over the past month, contrasting with a 1.25% increase in the Sensex.<BR><BR>Today's trading activity indicates a bearish trend, as the stock touched an intraday low of Rs 178.5, marking a decline of 3.49%. The weighted average price suggests that more volume was traded closer to this low price, indicating a lack of buying interest. Furthermore, there has been a notable drop in investor participation, with delivery volume falling by 50.68% compared to the 5-day average. Although the stock remains above its 100-day and 200-day moving averages, it is below the shorter-term 5-day, 20-day, and 50-day moving averages, which typically indicates a weakening momentum. Overall, these factors contribute to the current downward movement in Gem Aromatics Ltd's stock price.

Which are the latest news on Gem Aromatics?

Should I buy, sell or hold Gem Aromatics Ltd?

What does Gem Aromatics do?

Gem Aromatics Ltd is a micro-cap company in the specialty chemicals industry, reporting net sales of 110 Cr and a net profit of 1 Cr for the quarter ending March 2026. Key metrics include a P/E ratio of 611.00 and a market cap of INR 872 Cr.

Overview: <BR>Gem Aromatics Ltd operates in the specialty chemicals industry and is categorized as a micro-cap company.<BR><BR>History: <BR>The incorporation year and any status changes are not provided. The latest quarter for which sales and profit are reported is March 2026.<BR><BR>Financial Snapshot: <BR>Most recent Net Sales: 110 Cr (Quarterly Results - Mar 2026) <BR>Most recent Net Profit: 1 Cr (Quarterly Results - Mar 2026) <BR>Market-cap value: INR 872 Cr (Micro Cap)<BR><BR>Key Metrics: <BR>P/E: 611.00 <BR>Industry P/E: 42 <BR>Dividend Yield: 0.00% <BR>Debt-Equity: 0.18 <BR>Return on Equity: 5.80% <BR>Price to Book: 1.85 <BR><BR>Contact Details: <BR>Registrar Address: Not available. <BR>Phone: N/A <BR>Email: N/A <BR>Website: N/A

How big is Gem Aromatics?

As of 10th June, Gem Aromatics Ltd has a market capitalization of 872.00 Cr, with recent net sales of 366.47 Cr and a net profit of 1.42 Cr. Shareholder's funds are 283.98 Cr, and total assets amount to 532.66 Cr.

As of 10th June, Gem Aromatics Ltd has a market capitalization of 872.00 Cr, categorizing it as a Micro Cap company.<BR><BR>In the latest four quarters, Gem Aromatics reported Net Sales of 366.47 Cr and a Net Profit of 1.42 Cr.<BR><BR>The latest annual period for the balance sheet is March 2025, with Shareholder's Funds amounting to 283.98 Cr and Total Assets of 532.66 Cr.

Who are the peers of the Gem Aromatics?

Gem Aromatics' peers include Excel Industries, Oriental Aromatics, Sunshield Chem., Jyoti Resins, Indo Amines, Sudarshan Pharma, Valiant Organics, Fairchem Organic, Chemcon Special, and Sacheerome. Key insights show Jyoti Resins has excellent management and growth, while Gem Aromatics has average management risk and growth, with no available 1-year return data for comparison.

Peers: The peers of Gem Aromatics are Excel Industries, Oriental Aromat., Sunshield Chem., Jyoti Resins, Indo Amines, Sudarshan Pharma, Valiant Organics, Fairchem Organic, Chemcon Special., and Sacheerome.<BR><BR>Quality Snapshot: Excellent management risk is observed at Jyoti Resins, while Average management risk is found at Excel Industries, Oriental Aromat., Sunshield Chem., Indo Amines, Gem Aromatics, Sudarshan Pharma, Valiant Organics, Fairchem Organic, and Sacheerome, and the rest. Growth is Excellent at Jyoti Resins and Sudarshan Pharma, while Below Average growth is noted at Excel Industries, Oriental Aromat., Sunshield Chem., Indo Amines, Gem Aromatics, Valiant Organics, Fairchem Organic, and Chemcon Special., and the rest. Capital Structure is Excellent at Excel Industries and Jyoti Resins, Good at Gem Aromatics and Fairchem Organic, and Below Average at Oriental Aromat., Indo Amines, Sudarshan Pharma, and the rest.<BR><BR>Return Snapshot: The peer with the highest 1-year return is Sunshield Chem. at 55.62%, while the lowest is Valiant Organics at -44.11%. Gem Aromatics does not have a 1-year return available for comparison. Additionally, the peers with negative six-month returns include Valiant Organics and Fairchem Organic.

Are Gem Aromatics Ltd latest results good or bad?

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.

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.<BR><BR>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.<BR><BR>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.<BR><BR>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.

When is the next results date for Gem Aromatics Ltd?

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

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

How has been the historical performance of Gem Aromatics?

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.

Answer:<BR>The historical performance of Gem Aromatics shows a steady growth trajectory in key financial metrics from March 2024 to March 2025.<BR><BR>Breakdown:<BR>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.

Is Gem Aromatics overvalued or undervalued?

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.

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.<BR><BR>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.