Gem Aromatics Limited is an established manufacturer of specialty ingredients, including, essential oils, aroma chemicals and Value Added Derivatives in India with a track record of over two decades. They offer a diversified portfolio of products, ranging from the Mother Ingredients to its various Value-Added Derivatives. The products find application across a broad spectrum of industries, such as, oral care, cosmetics, nutraceuticals, pharmaceuticals, wellness and pain management and personal care. They are one of the prominent essential oils and Value-Added Derivatives manufacturers in India, based on value and volume manufactured, specializing in products that are derived from mint and clove oil. During FY 2025 in India, they were one of the largest procurers of Piperita oil, and one of the largest processors of DMO, Clove oil, Eugenol and Eucalyptus Oil in terms of volume manufactured. As on FY 2025, their share of DMO and Eugenol in India was 12% and 65%, respectively, in terms of volume manufactured. Company offers 70 products across the four product categories, namely, (i) mint and mint derivatives; (ii) clove and clove derivatives; (iii) phenol; and (iv) other synthetic and natural ingredients. They commenced the operation in Fiscal 1999 in the mint and mint derivative category with products like spearmint and piperita. they commenced production and sale under the clove and clove derivative category in 2009. They are in the process of introducing products under the new category, being, citral. Company has established long standing relationships with several domestic and global corporate customers such as, Colgate-Palmolive (India) Limited, Dabur India Limited, Patanjali Ayurved Limited, SH Kelkar and Company Limited, Rossari Biotech Limited, Symrise Private Limited, d?TERRA, Ventos So Brasil Eireli and Anhui Hautian Spices Co. Ltd. as well as several domestic and global merchant traders. In Fiscal 2025, they supplied the products to 225 customers domestically and 44 customers cumulatively across 18 foreign countries globally, covering geographies including the Americas, Asia, Africa and Australia. In the domestic market, they sell the products directly to the customers on a business-to-business basis and the export sales are undertaken through a combination of methods such as (i) direct sales by the Company to the customers; (ii) sales through the Material Subsidiary, i.e., Gem Aromatics LLC, based in the USA; or (iii) sales through third party agencies. Company operates three manufacturing facilities located in Budaun, Uttar Pradesh ('Budaun Facility'), Silvassa, Dadra and Nagar Haveli and Daman and Diu ('Silvassa Facility') and Dahej, Gujarat (Dahej Facility) with production capacity per annum 3,800 MTPA, 1,500 MTPA and 46 MTPA respectively. As per financial performance, Gem Aromatics Limited has posted total income / net profits of Rs 425.09 Cr / 44.67 Cr (FY23), Rs 454.23 Cr / Rs 50.10 Cr (FY24) and Rs 505.64 Cr / 53.38 Cr (FY25). So as per previous financials data, company has shown steady growth. Company has an average EPS of Rs 10.85 and average RoNW of 20.79% for last three fiscals. Issue is priced at a P/BV of 5.36 as per NAV of Rs 60.61/- as on 31.03.25. If we attribute latest earnings of FY23, FY24 and FY25 on equity post issue, then asking price is at a P/E of around 38.00, 33.88 and 31.80 respectively. As per RHP, comparison between listed peers is shown in above table. On BRLM's front, Motilal Oswal Investment Advisors Limited is associated with this IPO, and have handled 21 IPOs in last three fiscal years. ( As on 18.08.25 ) As per financials, Gem Aromatics Limited has shown steady growth, RoNW is 18.8% and P/E is 38.00, 33.88 and 31.80 respectively as per FY23, FY24 and FY25 earnings. So issue looks fully priced. Company is a manufacturer of specialty ingredients, including, essential oils, aroma chemicals and Value Added Derivatives in India, which is highly competitive business segment. So, we give NEUTRAL rating for this IPO. Readers must consult a qualified financial advisor prior to making any actual investment decisions.
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