3y sales CAGR −3.5%3y PAT CAGR −12.3%Mar-26 sales −44.5% yoyROCE 9.1% < cost of capitalP/E 37.5 vs peer median 30.4FY28 guide ≈ 2.9× FY26 revenueD/E 0.19 post-IPOFY26 CFO +₹95 CrPromoter 55.1% → 57.4%
Market Cap
₹1,001 Cr
CMP (31-Jul)
₹192
ROCE
9.1%
ROE
7.0%
P/E (ttm)
37.5
Sales FY26
₹371 Cr
PAT FY26
₹27 Cr
D/E (FY26)
0.19
Inventory Days
232
Promoter (Jun-26)
57.4%
1 · Business — what it sells, to whom
screener.in company profile & key points
Incorporated October 1997, listed 2025. Gem Aromatics manufactures speciality ingredients — essential
oils, aroma chemicals and value-added derivatives: a portfolio of ~70 products across four categories,
with its foundation in mint- and clove-based products and growing capability in eucalyptus and phenol
derivatives. End applications: oral care, cosmetics, nutraceuticals, pharmaceuticals, wellness/pain
management and personal care.
Position / moat assessment
Niche depth, not a moat: mint/clove derivative chemistry is specialised but sits inside a commodity-linked agri input chain (mentha oil, clove oil) with pass-through pricing pressure.
Customer stickiness — unproven publicly: ingredient qualification in oral care/pharma can be sticky, but no customer-concentration or contract disclosure is available from the sources this run — rendered as a dash, not assumed.
Scale: ₹371 Cr revenue, ₹1,001 Cr market cap — a micro-cap in a chain with much larger buyers.
What the numbers say about the model
Raw-material-heavy P&L: FY26 OPM 11%, down from 17% in FY24–FY25.
Inventory 232 days — the business carries most of a year of stock (agri-crop input buying), so the balance sheet is hostage to input-price cycles.
Listed 2025: only ~4 quarters of public shareholding history and no pre-IPO management track record to audit.
2 · P&L Quality — 6-year trend
screener.in annual P&L · FY21–FY26
FY
Sales ₹Cr
YoY
OP ₹Cr
OPM
Other Inc ₹Cr
PAT ₹Cr
OI / PBT
FY21
320
—
31
10%
4
23
13%
FY22
302
−5.6%
48
16%
3
31
7%
FY23
413
+36.8%
59
14%
1
40
2%
FY24
447
+8.2%
76
17%
3
49
4%
FY25
497
+11.2%
86
17%
5
57
6%
FY26
371
−25.4%
39
11%
12
27
33%
The listing-year P&L is the worst in the series: sales −25.4%, OPM 17%→11%, PAT halved 57→27.
3-year CAGR FY23→FY26: sales −3.5% (₹413→₹371 Cr), PAT −12.3% (₹40→₹27 Cr) — computed from the table above.
SETL test flag: other income ₹12 Cr is 33% of FY26 PBT (₹36 Cr) — a third of the profit line is treasury yield
on parked IPO cash, not operations. Ex-other-income, operating PBT roughly ₹24 Cr.
D/E 0.19 (90 / 475) vs 0.52 in FY25 — computed from the table.
₹101 Cr now sits in investments (up from ₹1 Cr) — the treasury book behind the other-income line in section 2.
Working capital — the heavy end
Inventory 232 days · debtors 55 · payables 18 ⇒ cash-conversion cycle 269 days (screener FY26 ratios).
Working-capital days 142. Nine months of capital is tied up per revenue cycle — growth here is cash-hungry by construction.
CWIP ₹0 at FY26 — no visible capex bet on the balance sheet; the FY28 revenue guidance has no bricks under it yet in these numbers.
4 · Cash Flow — CFO vs PAT
screener.in annual cash flow · FY21–FY26
FY
CFO ₹Cr
PAT ₹Cr
CFO/PAT
Investing ₹Cr
Financing ₹Cr
FCF ₹Cr
FY21
−3
23
−13%
−5
+8
−9
FY22
−16
31
−52%
−4
+19
−21
FY23
12
40
30%
−13
+7
−2
FY24
42
49
86%
−25
−12
+36
FY25
−12
57
−21%
−54
+52
−20
FY26
+95
27
352%
−190
+99
+90
SPECTRUM test: cumulative FY21–FY26 CFO is ₹118 Cr against cumulative PAT of ₹227 Cr —
barely half the reported profit ever became operating cash, and pre-IPO growth years (FY22, FY25) were funded by
borrowing (+₹19 Cr, +₹52 Cr financing inflows against negative CFO). FY26's +₹95 Cr CFO is genuine but flattered by
the inventory/receivable unwind that accompanied a −25% sales year; the −₹190 Cr investing line is IPO cash moving
into the treasury book, not capacity.
5 · Returns on Capital
screener.in ratios · derived series computed as PAT ÷ year-end net worth
Metric
Value
Reading
ROCE (screener, FY26)
9.1%
below any reasonable Indian cost of capital (~12–14%)
ROE (screener, FY26)
7.0%
the equity base doubled at IPO while PAT halved
PAT / year-end net worth — FY23
22.5%
40 / 178 — computed
PAT / year-end net worth — FY24
21.6%
49 / 227 — computed
PAT / year-end net worth — FY25
20.1%
57 / 284 — computed
PAT / year-end net worth — FY26
5.7%
27 / 475 — computed; direction is sharply down
Pre-IPO the business earned ~20% on its (small, levered) equity. Post-IPO it earns single digits on a
₹475 Cr net worth. Every year the company earns 9% on capital that costs 12%+, it destroys value — the FY28
margin guidance (16–18% EBITDA) is also, implicitly, a returns-repair promise that is currently unevidenced.
6 · Shareholding
screener.in quarterly pattern — only 4 quarters exist (listed 2025); pledge data not reported by the source — dash
Quarter
Promoters
FIIs
DIIs
Public
# Shareholders
Sep 2025
55.06%
2.02%
6.56%
36.36%
76,626
Dec 2025
55.06%
0.79%
4.59%
39.56%
69,768
Mar 2026
57.01%
1.06%
4.81%
37.11%
62,512
Jun 2026
57.44%
0.75%
4.81%
37.00%
60,190
E2E test — passes, with an asterisk. Promoters have added 55.06% → 57.44% since listing —
buying into a falling price, the opposite of the classic red flag, and the single most supportive datum in this dossier.
Against it: FIIs 2.02%→0.75% and DIIs 6.56%→4.81% — the institutional book from the IPO has largely walked — and the
shareholder count has shrunk 76.6k→60.2k. Promoter pledge: — (not reported by source). Four data points is too short a
series to call a trend with confidence.
P/E 37.5× against a peer median of 30.4× — a ~23% premium for a company whose sales and profits are shrinking while the median peer grows 16%.
P/B 2.1× (₹192 / book value ₹91.1) for a 7% ROE — the book earns less than a fixed deposit.
Zero dividend despite repeated profits (screener con).
What ₹192 has to believe
At 37.5× ttm, the price only works if the FY28 guidance (section G) lands — i.e. revenue nearly tripling in two years and margins returning past their historical best.
Own history: — (listed 2025; no meaningful own-multiple history exists to anchor against).
52-week range ₹133–₹350: the market has already priced this story at both 68× and 26× within twelve months.
8 · Quarterly Cadence — last 8 quarters
screener.in quarterly results · YoY computed against the same quarter prior year · latest on record: Mar-2026 — no Jun-26 quarter reported yet
Quarter
Sales ₹Cr
YoY
OP ₹Cr
OPM
Other Inc ₹Cr
PAT ₹Cr
Jun 2024
93
—
14
15%
1
9
Sep 2024
113
—
12
11%
1
8
Dec 2024
89
—
9
10%
2
5
Mar 2025
202
—
45
22%
2
29
Jun 2025
76
−18.3%
11
14%
3
7
Sep 2025
98
−13.3%
6
6%
4
4
Dec 2025
84
−5.6%
8
9%
2
4
Mar 2026
112
−44.5%
15
13%
4
12
Four consecutive down quarters — every quarter of FY26 fell yoy. DEEPINDS-style anomaly: Mar-2025
booked ₹202 Cr — 41% of FY25's full-year sales in one (pre-IPO) quarter at a 22% OPM the company never saw before or
since. Whether that was a genuine order bunching or a listing-year dress-up cannot be resolved from screener data, but
it means the −44.5% Mar-26 print is measured against a suspect base — and it also means FY25's ₹497 Cr peak may
overstate the real run-rate. Sep-25's 6% OPM shows how thin the floor gets. No Jun-26 quarter is on record yet;
the Jun-26 result is the next hard data point.
"Reaffirmed FY28 guidance of INR1,050 crores to INR1,100 crores revenue and 16%–18% EBITDA margins,
but declined to provide FY27 guidance due to geopolitical uncertainties" — guidance status: maintained · period FY28
The arithmetic, stated plainly
FY26 revenue: ₹371 Cr. FY28 guidance midpoint: ₹1,075 Cr. That is 2.9× in two years — roughly a 70% revenue CAGR — from a company that just printed −25% and has never grown faster than +37% in a single year (FY23).
Even against the suspect FY25 peak of ₹497 Cr, the target is 2.2×.
Margin guidance 16–18% EBITDA vs 11% OPM delivered in FY26 — above the FY24–25 best of 17%.
No revenue/volume/PAT growth bridge was extractable from the guidance corpus, so no EPS-growth bridge is quoted — the identity needs a growth number management did not give for any nearer year.
Credibility & scenario
The FY27 refusal is the finding. Management reaffirmed a bold two-years-out number while declining to underwrite the very next year. A target you won't stake the intervening year on is a slogan, not guidance.
Management record: — listed 2025; no guided-vs-delivered history exists to grade consistency, and the model issued no confidence grade for this name (not scored this cycle).
Scenario block: no scenario coverage — the model skipped this name for thin inputs. No bear/base/bull EPS paths or targets are printed, and none are estimated here.
⚡ 9 · CONSOLIDATED VIEW THESIS
Research Reference Only — Not an Investment Recommendation · Primaegis Research Pipeline
💡 THE HONEST PARAGRAPH
This name is on the list because it is the week's top Quick-Move technical candidate; this dossier's
job is to show what the chart cannot. What the chart cannot show: a 2025-listed micro-cap whose listing-year P&L
shrank 25% with every quarter down yoy, earning 9.1% on capital that costs more than that, carrying 232 days of
inventory, with a third of its FY26 profit coming from interest on its own IPO cash — priced at 37.5×, a premium to a
peer median that is actually growing. To own this, you would have to believe the FY28 guidance: revenue nearly
tripling in two years to ₹1,050–1,100 Cr at record margins — from a management that simultaneously refused to guide
FY27 at all, with zero CWIP on the balance sheet to build it from and no delivery record to grade.
What breaks the thesis is already visible: one more down quarter (Jun-26, the next print) makes the FY28 path
arithmetically absurd rather than merely heroic. The genuine positives — D/E 0.19, FY26 CFO +₹95 Cr, and promoters
adding 55.1%→57.4% into a 45% drawdown — are balance-sheet repair and insider conviction, not growth evidence.
✅ PROS (feeds the weekly strip)
Promoters adding into weakness: 55.06% → 57.44% over four quarters (§6)
FY26 CFO +₹95 Cr, FCF +₹90 Cr — best cash year on record (§4)
₹101 Cr treasury book = optionality/runway for the guided expansion (§3)
Niche mint/clove derivative chemistry with oral-care/pharma end-markets (§1)
⚠️ CONS (feeds the weekly strip)
3y sales CAGR −3.5%, PAT CAGR −12.3%; FY26 all four quarters down yoy (§2, §8)
ROCE 9.1% / ROE 7.0% — below cost of capital; returns direction sharply down (§5)
P/E 37.5 vs peer median 30.4 for a shrinking P&L (§7)
FY28 guidance = ~2.9× FY26 revenue in 2 years, while FY27 guidance was refused (§G)
Other income = 33% of FY26 PBT — treasury, not operations (§2)
232 inventory days / 269-day CCC; Mar-25 ₹202 Cr quarter makes the base suspect (§3, §8)
FII/DII book exiting; only 4 quarters of listed history; no scenario coverage (§6, §G)
Fundamentals vs Technicals
DIVERGENT
The chart is the week's best Quick-Move setup; the fundamentals do not underwrite it.
Any participation is a rented technical trade under the system's stops — it must never be averaged, married, or held through a failed level on "value" grounds, because there is no demonstrated value floor at this price.
Primaegis Research Opinion · Internal Analyst View
TECHNICAL-ONLY · AVOID AS INVESTMENT
📊 Conviction: High (on the fundamental negative)
· ⏱ Horizon: n/a as investment; trade horizon per Quick-Move rules only
🔄 Would change if: Jun-26 and Sep-26 quarters return to yoy growth with OPM ≥ 15%,
a concrete capex plan (CWIP/orders) appears behind the FY28 number, or management issues and meets an FY27 guide.
⚠️ This is an internal, unregulated analytical opinion of Primaegis Research for internal pipeline
use only. It does NOT constitute a SEBI-regulated investment recommendation, research report, or
solicitation to buy, sell, or hold any security. Consult a SEBI-registered investment advisor before
making any financial decision.
⚠️ IMPORTANT DISCLAIMER
This document is a research and educational output only, generated by the Primaegis Research
company-dossier pipeline (fallback path). Neither the author nor any contributor to this report is a
SEBI registered investment advisor or research analyst. Nothing in this report constitutes
investment advice, a research recommendation, or a solicitation to buy, sell, or hold any security,
fund, or financial instrument under SEBI (Research Analyst) Regulations, 2014 or any other
applicable law. All financial data is sourced from publicly available disclosures (screener.in,
NSE/BSE filings, company releases) and the local guidance-extraction pipeline; every figure is fetched or
computed, and any value that could not be sourced is rendered as a dash. All technical references are for
research tracking only. Always conduct your own due diligence and consult a SEBI registered investment
advisor before making any financial decision. Generated: 2026-08-01 | Primaegis Research · Not for distribution.