Gem Aromatics

Which are the latest news on Gem Aromatics?

Why is Gem Aromatics Ltd falling/rising?

As of 05-Sep, Gem Aromatics Ltd's stock price is declining, currently at 160.85, reflecting a 12-day downward trend with an overall loss of -8.68%. The company has underperformed the market significantly, with a one-year return of -40.59%, and has reported negative financial results, contributing to investor concerns.

As of 05-Sep, Gem Aromatics Ltd's stock price is falling, currently at 160.85, which reflects a change of -0.15 (-0.09%). The stock has been on a downward trend, having lost value for the last 12 consecutive days, resulting in a total decline of -8.68% during this period. This consistent decrease is compounded by the fact that the stock is trading below its 5-day, 20-day, 50-day, 100-day, and 200-day moving averages, indicating a bearish trend.<BR><BR>In terms of performance relative to the market, Gem Aromatics has significantly underperformed, with a one-year return of -40.59%, while the broader market (BSE500) has generated a positive return of 1.51%. The company's financial health is also concerning, as it has reported negative results for the last four consecutive quarters, including a substantial drop in profit before tax and net sales. Specifically, the profit before tax has fallen by -735.0% compared to the previous four-quarter average, and net sales have decreased by -25.48%.<BR><BR>Furthermore, the company's weak long-term fundamentals, characterized by a low return on equity of 18.80% and a negative EBIT of Rs. -0.83 cr, contribute to the perception of risk among investors. The lack of investment from domestic mutual funds, which hold 0% of the company, further suggests a lack of confidence in the stock's prospects. Overall, these factors collectively explain the ongoing decline in Gem Aromatics Ltd's stock price.

What does Gem Aromatics do?

Gem Aromatics Ltd is a micro-cap company in the specialty chemicals industry, reporting net sales of 99 Cr and a net loss of 8 Cr for June 2026, with a market cap of INR 872 Cr. Key financial metrics include a debt-equity ratio of 0.30 and a return on equity of 0.32%.

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 quarterly results reported are for June 2026, showing net sales and profit figures.<BR><BR>Financial Snapshot:<BR>Most recent Net Sales: 99 Cr (Quarterly Results - Jun 2026) <BR>Most recent Net Profit: -8 Cr (Quarterly Results - Jun 2026) <BR>Market-cap value: INR 872 Cr (Micro Cap)<BR><BR>Key Metrics:<BR>P/E: N/A <BR>Industry P/E: 43 <BR>Dividend Yield: 0.00% <BR>Debt-Equity: 0.30 <BR>Return on Equity: 0.32% <BR>Price-to-Book: 1.95<BR><BR>Contact Details:<BR>Registrar Address: Not available. <BR>Phone: Not available. <BR>Email: Not available. <BR>Website: Not available.

Who are the peers of the Gem Aromatics?

Gem Aromatics' peers include Jyoti Resins, Sunshield Chem., Sudarshan Pharma, and others. It has below-average management risk and growth, with the lowest 1-year return at -39.13%, significantly trailing its peers.

Peers: The peers of Gem Aromatics are Jyoti Resins, Sunshield Chem., Sudarshan Pharma, Amal, Indo Amines, Fairchem Organic, Valiant Organics, Chembond Chemic., and Chemcon Special.<BR><BR>Quality Snapshot: Excellent management risk is observed at Chembond Chemic. and Chemcon Special, while Average management risk is found at Jyoti Resins, Sunshield Chem., Sudarshan Pharma, Amal, Fairchem Organic, and the rest. Below Average management risk is present at Gem Aromatics, Indo Amines, Valiant Organics, and the rest. Growth is Excellent at Sudarshan Pharma, Good at Jyoti Resins, Amal, and the rest, while Below Average growth is noted at Gem Aromatics, Sunshield Chem., Indo Amines, Fairchem Organic, Valiant Organics, and the rest. Capital Structure is Excellent at Chembond Chemic. and Chemcon Special, Good at Fairchem Organic, Average at Sunshield Chem., Amal, Valiant Organics, and the rest, and Below Average at Gem Aromatics, Indo Amines, and the rest.<BR><BR>Return Snapshot: The peer with the highest 1-year return is Sunshield Chem. at 20.21%, while the peer with the lowest is Gem Aromatics at -39.13%. Gem Aromatics' 1-year return is significantly lower than that of all peers. Additionally, Indo Amines and Gem Aromatics are the only peers with a negative six-month return.

How big is Gem Aromatics?

As of 31st August, Gem Aromatics Ltd has a market capitalization of 872.00 Cr, with net sales of 377.69 Cr and a loss of 14.43 Cr over the latest four quarters. Shareholder's funds are 449.93 Cr, and total assets are valued at 633.40 Cr as of March 2026.

As of 31st August, Gem Aromatics Ltd has a market capitalization of 872.00 Cr and is classified as a Micro Cap company.<BR><BR>In the latest four quarters, Gem Aromatics reported net sales of 377.69 Cr. However, the company experienced a loss of 14.43 Cr during this period.<BR><BR>The latest reporting period for the balance sheet is March 2026. Shareholder's funds stand at 449.93 Cr, while total assets are valued at 633.40 Cr.

Should I buy, sell or hold Gem Aromatics Ltd?

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.