Gem Aromatics Limited (GEMAROMA) AI Stock Analysis

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Gem Aromatics Limited

(NSE:GEMAROMA)

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Rating:42Neutral

Price Target:INR 132.00▼(-3.65% Downside)

Action:reiterated

Date:09/16/26

The score is primarily weighed down by weak financial quality—especially persistently negative free cash flow and very thin net profitability—despite improved leverage and solid revenue growth. Technical indicators also remain bearish with the stock trading below key moving averages and negative MACD. Valuation is constrained by a negative P/E and no disclosed dividend yield.

Positive Factors

Revenue GrowthFY2026 revenue growth of 25.6% indicates meaningful expansion in the reported business base. If sustained, this scale can support operating leverage and provide a stronger platform for future earnings, although the current evidence does not establish how durable the growth will be.

Negative Factors

Negative Free Cash FlowDeeply negative free cash flow in both FY2025 and FY2026, worsening in FY2026, is a persistent funding weakness. Cash deficits can constrain investment flexibility and increase reliance on external funding or balance-sheet capacity to finance working capital and growth.

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

Market Cap: INR 7.16B
Dividend Yield: ―
Average Volume (3M): 5,761
Price to Earnings (P/E): -49.5
Beta (1Y): 1.69
Revenue Growth: ―
EPS Growth: ―
Country: India
Employees: 251
Sector: General
Sector Strength: 55
Industry: Chemicals

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, su...

Gem Aromatics Limited Financial Statement Overview

Summary

Despite strong FY2026 revenue growth and improved operating profitability, overall quality is held back by extremely thin net margins and persistently negative free cash flow. Balance-sheet leverage improved meaningfully, but weak cash generation remains the main financial risk.

Income Statement

44Neutral

Balance Sheet

62Positive

Cash Flow

28Negative

Financial statement breakdown
Breakdown	TTM	Mar 2026	Mar 2025	Mar 2024	Mar 2023	Mar 2022
Income Statement
Total Revenue	3.66B	3.66B	4.95B	4.46B	4.19B	3.11B
Gross Profit	563.12M	513.22M	905.00M	1.01B	968.67M	691.69M
EBITDA	406.26M	407.52M	82.37M	799.35M	659.19M	513.61M
Net Income	14.23M	14.25M	533.84M	501.04M	446.72M	311.86M
Balance Sheet
Total Assets	6.42B	6.42B	5.35B	3.69B	2.96B	2.40B
Cash, Cash Equivalents and Short-Term Investments	159.42M	159.42M	11.31M	280.84M	105.73M	64.98M
Total Debt	1.52B	1.52B	2.27B	1.12B	902.01M	781.23M
Total Liabilities	1.92B	1.92B	2.52B	1.38B	1.16B	1.02B
Stockholders Equity	4.50B	4.50B	2.84B	2.31B	1.80B	1.38B
Cash Flow
Free Cash Flow	-457.24M	-777.51M	-1.30B	9.89M	9.25M	-193.89M
Operating Cash Flow	212.11M	173.55M	-249.16M	401.31M	153.05M	-52.03M
Investing Cash Flow	-667.74M	-1.02B	-925.37M	-510.50M	-143.58M	-140.14M
Financing Cash Flow	777.53M	900.63M	1.03B	153.60M	64.37M	180.94M

Gem Aromatics Limited Technical Analysis

Technical Analysis SentimentNegative

Last Price137.00

Price Trends

50DMA155.68Negative

100DMA169.76Negative

200DMA169.28Negative

Market Momentum

MACD-5.38Positive

RSI35.06Neutral

STOCH39.50Neutral

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 137.00 is below the 20-day moving average (MA) of 145.14, below the 50-day MA of 155.68, and below the 200-day MA of 169.28, indicating a bearish trend. The MACD of -5.38 indicates Positive momentum. The RSI at 35.06 is Neutral, neither overbought nor oversold. The STOCH value of 39.50 is Neutral, 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

IN:GEMAROMA against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
IN:INDOAMIN	76Outperform	INR 8.68B	10.73	―	0.42%	13.23%	22.22%
IN:VALIANTORG	64Neutral	INR 11.77B	21.82	―	―	1.41%	946.41%
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
IN:DMCC	53Neutral	INR 6.34B	15.85	―	0.98%	72.14%	34.49%
IN:GEMAROMA	42Neutral	INR 7.16B	-49.47	―	―	―	―
IN:SEYAIND	39Underperform	INR 300.78M	-10.44	―	―	―	56.50%
IN:ISHANCH	37Underperform	INR 1.22B	50.02	―	―	84.25%	―

* General Sector Average

Performance Comparison

IN:GEMAROMA and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
IN:GEMAROMA	Gem Aromatics Limited	137.00	-85.75	-38.50%
IN:DMCC	DMCC Speciality Chemicals Limited	254.25	-45.46	-15.17%
IN:INDOAMIN	Indo Amines Limited	119.55	-12.92	-9.75%
IN:SEYAIND	Seya Industries Ltd.	11.32	-10.73	-48.66%
IN:VALIANTORG	Valiant Organics Limited	419.85	114.85	37.66%
IN:ISHANCH	Ishan Dyes and Chemicals Limited	44.68	-28.65	-39.07%

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: Sep 16, 2026

Gem Aromatics Limited AI Stock Analysis

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