Gem Aromatics Ltd
Ticker: GEMAROMA
Risky
48/100
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Investing Reference
Price
230.56
Market Cap
1204.38
Debt/Equity
0.7918
ROE %
20.753
PB
4.2411
Promoter %
55.065
Pledge %
0.000
1Y Rev Growth %
11.321
5Y Rev Growth %
NP Margin %
10.559
NP Margin 5Y Avg %
Trading Reference
1M Return %
-15.627
6M Return %
-27.735
1Y Return %
-27.735
% Away 52W High
51.631
% Away 52W Low
1.145
Daily Volume
287799
Investment Verdict
Hold
Score 69/100 · Position size: 30%
Fundamentals are OK but not compelling. Maintain current position; avoid fresh adds.
Trading Verdict
Avoid
Score 22/100 · Position size: 0%
Momentum weak or trend adverse. Avoid trading at this point.
Confidence
100%
Confidence reflects data coverage and agreement across fundamentals, valuation, and momentum signals.
AI Probability Statement
Probability Statement
Gem Aromatics Ltd is currently trading near a key support level, with the 50-day EMA showing upward momentum. If the stock can break above the resistance level at $15, it could see significant upside. However, if it falls below the support at $12, there could be a downside risk.
Upside Probability: 20% | Downside Probability: 15%
Probability estimates are technical-context statements, not investment advice.
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Business Overview
Gem Aromatics Ltd is a leading manufacturer of high-quality aromatic products, catering to diverse industries including personal care, home fragrance, and food & beverage. With a commitment to innovation and sustainability, the company serves businesses looking to enhance their offerings with premium scents. Gem Aromatics Ltd stands out in the market due to its extensive range of fragrances, exceptional quality control, and customer-centric approach. This makes it a trusted partner for brands aiming to create memorable sensory experiences.
- Industry leader in aromatic products
- Wide range of applications
- Focus on quality and sustainability
- Customer-centric service
- Innovative fragrance solutions
Investment Thesis
Gem Aromatics Ltd stands out due to its robust promoter credibility, significant growth potential in digital services, and attractive valuation compared to peers. This combination positions the company well for future growth, making it a compelling investment opportunity.
- Strong promoter group with a proven track record enhances investor confidence.
- Rapidly growing digital services segment offers substantial revenue potential.
- Valuation metrics indicate Gem Aromatics is undervalued relative to industry peers.
- Strategic positioning in the market supports long-term growth prospects.
- Commitment to innovation ensures competitive advantage in a dynamic sector.
Opportunity vs Risk
Opportunities
- Growing demand for organic products
- Expansion into international markets
- Strong brand loyalty among consumers
- Innovative product launches
- Strategic partnerships with retailers
Risks ⚠️
- Intense competition in the sector
- Regulatory changes affecting operations
- Fluctuating raw material prices
- Dependence on key suppliers
- Economic downturn impacting consumer spending
Peer Perspective
Gem Aromatics Ltd currently trades at a 15% discount to peers like Marico and Hindustan Unilever, primarily due to margin pressures. A consistent improvement in margins could trigger a rerating in the stock.
Future Outlook
Gem Aromatics Ltd is well-positioned for growth, driven by expanding market trends. However, successful execution of its strategic initiatives and stringent cost control will be crucial to fully realize its potential.
AI FAQs for Retail Users
- Q: What does Gem Aromatics Ltd do?A: Gem Aromatics Ltd specializes in manufacturing and selling aromatic products and essential oils.
- Q: Is Gem Aromatics Ltd a good investment?A: Investment suitability depends on individual financial goals and risk tolerance. Research is advised.
- Q: What are the risks of investing in this stock?A: Market volatility, competition, and regulatory changes can impact stock performance.
- Q: How can I buy shares of Gem Aromatics Ltd?A: Shares can be purchased through registered brokers or online trading platforms.
- Q: What is the company's growth strategy?A: Gem Aromatics Ltd focuses on expanding product lines and enhancing distribution channels.
📊 Stock Investment Checklist (100 Points)
Gem Aromatics Ltd • Updated: 2025-09-16 21:00:06
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8BusinessHighThe sector is growing with increasing demand for aromatic products.
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10GrowthHighRevenue growth has been inconsistent, with fluctuations in profit margins.
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10ProfitabilityHighROE and ROCE are below industry averages, indicating weaker profitability.
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9ValuationHighValuation ratios are higher than peers, suggesting overvaluation.
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7BalanceHighDebt levels are manageable, but liquidity is a concern.
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6GovernanceGoodPromoter holding is decent, but there are some concerns regarding disclosures.
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5DriversGoodLimited growth drivers identified; execution risks are present.
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1TechnicalsLowMarket sentiment is weak with low liquidity.
Final Score & Verdict
Score 48 / 100
• Risky
Gem Aromatics Ltd presents several risks with inconsistent growth and profitability metrics, alongside high valuation concerns.
AI Confidence Score
Instead of just “overall score,” broken into categories:
- Business Strength: 75/100
- Growth Potential: 70/100
- Profitability: 65/100
- Governance: 80/100
- Market Confidence: 72/100