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Gem Aromatics Limited (IN:GEMAROMA)
:GEMAROMA
India Market
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Gem Aromatics Limited (GEMAROMA) AI Stock Analysis

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IN:GEMAROMA

Gem Aromatics Limited

(GEMAROMA)

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Neutral 48 (OpenAI - Gpt-5.6Sol)
Rating:48Neutral
Price Target:
₹165.00
▼(-6.04% Downside)
Action:Reiterated
Date:06/16/26
The score is held back primarily by weak financial quality—extremely thin net profitability and persistently negative free cash flow—despite improved operating momentum and a healthier leverage profile. Technicals are supportive but look overbought, and valuation is a major headwind given the very high P/E and no dividend yield data.
Positive Factors
Revenue Growth
Revenue growth of 25.6% indicates stronger operating momentum and expanding business activity. If sustained, this top-line progress can improve scale economics, support reinvestment, and provide a foundation for better earnings over the next several quarters.
Negative Factors
Thin Net Profitability
A net margin below 0.5% means that most operating gains are absorbed by costs below the operating line. Such limited bottom-line conversion leaves little buffer for disruption and makes durable earnings growth dependent on further improvement in overall cost absorption.
Read all positive and negative factors
Positive Factors
Negative Factors
Revenue Growth
Revenue growth of 25.6% indicates stronger operating momentum and expanding business activity. If sustained, this top-line progress can improve scale economics, support reinvestment, and provide a foundation for better earnings over the next several quarters.
Read all positive factors

Gem Aromatics Limited (GEMAROMA) vs. iShares MSCI India ETF (INDA)

Gem Aromatics Limited Business Overview & Revenue Model

Company Description
Based in Mumbai, India, Gem Aromatics Limited, established in 1997, operates as a global producer and distributor of a wide array of specialized aromatic compounds. The firm's product catalog features a comprehensive selection of mint derivatives,...

Gem Aromatics Limited Financial Statement Overview

Summary
Operating performance improved with strong FY2026 revenue growth (+25.6%) and better EBIT/EBITDA margins, and leverage declined meaningfully (debt-to-equity ~0.79 to ~0.34). Offsetting this, net profitability remains extremely thin (net margin <0.5%) and free cash flow is deeply negative and worsened, indicating weak cash quality and funding dependence.
Income Statement
44
Neutral
Balance Sheet
62
Positive
Cash Flow
28
Negative
BreakdownTTMMar 2026Mar 2025
Income Statement
Total Revenue2.92B3.66B4.95B
Gross Profit628.26M513.22M1.15B
EBITDA498.97M407.52M9.81M
Net Income250.26M14.25M6.24M
Balance Sheet
Total Assets6.58B6.42B5.35B
Cash, Cash Equivalents and Short-Term Investments367.87M159.42M11.31M
Total Debt1.46B1.52B2.25B
Total Liabilities2.03B1.92B2.51B
Stockholders Equity4.55B4.50B2.84B
Cash Flow
Free Cash Flow-1.53B-777.51M-1.30B
Operating Cash Flow-211.63M173.55M-249.16M
Investing Cash Flow-1.20B-1.02B-925.37M
Financing Cash Flow1.69B900.63M1.03B

Gem Aromatics Limited Technical Analysis

Technical Analysis Sentiment
Negative
Last Price175.60
Price Trends
50DMA
100DMA
200DMA
Market Momentum
MACD
-11.08
Positive
RSI
30.95
Neutral
STOCH
5.48
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:GEMAROMA, the sentiment is Negative. The current price of 175.6 is below the 20-day moving average (MA) of 230.27, equal to the 50-day MA of ―, and equal to the 200-day MA of ―, indicating a neutral trend. The MACD of -11.08 indicates Positive momentum. The RSI at 30.95 is Neutral, neither overbought nor oversold. The STOCH value of 5.48 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:GEMAROMA.

Gem Aromatics Limited Peers Comparison

Overall Rating
UnderperformOutperform
Sector (55)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
57
Neutral
₹431.50M14.983.70%574.64%
55
Neutral
$6.65B3.83-15.92%6.20%10.91%7.18%
48
Neutral
₹8.68B-58.08
* General Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
IN:GEMAROMA
Gem Aromatics Limited
160.50
-129.35
-44.63%
IN:AMBICAAGAR
Ambica Agarbathies & Aroma Industries Ltd.
25.01
-2.10
-7.75%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Jun 16, 2026