Gem Aromatics Intrinsic Value

GEMAROMA • Chemicals
Current Stock Price
₹163.88
Primary Intrinsic Value
₹315.56
Market Cap
₹147.5 Cr
+97.4% Upside
Median Value
₹323.56
Value Range
₹104 - ₹410
Assessment
Trading Below Calculated Value
Safety Margin
49.4%

GEMAROMA Valuation Methods Summary

Method Type Intrinsic Value Range Upside/Downside Details
Book Value Method asset ₹315.56 ₹284.00 - ₹347.12 +92.6% Book Value/Share: ₹315.56, P/B: 1.0x
Revenue Multiple Method revenue ₹323.56 ₹291.20 - ₹355.92 +97.4% Revenue/Share: ₹404.44, P/S: 0.8x
EBITDA Multiple Method earnings ₹104.39 ₹93.95 - ₹114.83 -36.3% EBITDA: ₹16.00Cr, EV/EBITDA: 6x
Simple DCF (5Y) dcf ₹409.70 ₹327.76 - ₹491.64 +150.0% CF Growth: 15.0%, Discount: 15%
Method Types: Earnings Asset DCF Growth Dividend Conservative

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Valuation Comparison Chart

GEMAROMA Intrinsic Value Analysis

What is the intrinsic value of GEMAROMA?

Based on our comprehensive analysis using 4 different valuation methods, the estimated intrinsic value of Gem Aromatics (GEMAROMA) is ₹323.56 (median value). With the current market price of ₹163.88, this represents a +97.4% variance from our estimated fair value.

The valuation range spans from ₹104.39 to ₹409.70, indicating ₹104.39 - ₹409.70.

Is GEMAROMA undervalued or overvalued?

Based on our multi-method analysis, Gem Aromatics (GEMAROMA) appears to be trading below calculated value by approximately 97.4%.

Financial Health Analysis

Financial Metric Current Value Industry Benchmark Assessment Impact on Valuation
Current Ratio 4.83 Industry Standard: 2.0+ Above 2.0 Measures short-term liquidity capacity
Debt to Equity Ratio 1.88 Industry Standard: <0.5 Above 1.0 Indicates financial leverage level
Return on Equity -4.2% Industry Standard: 15%+ Below 10% Measures shareholder return efficiency
Operating Margin 3.0% Industry Standard: 20%+ Below 10% Indicates operational efficiency level
Asset Turnover Ratio 0.68x Industry Standard: 1.0x+ Above 0.5x Measures asset utilization efficiency

Cash Flow Quality Analysis

Period Operating Cash Flow Free Cash Flow Cash Flow Quality Sustainability Score
March 2025 ₹-25 Cr ₹-72 Cr Negative Cash Flow 3/10
March 2024 ₹40 Cr ₹15 Cr Positive Free Cash Flow 7/10
March 2023 ₹15 Cr ₹6 Cr Positive Free Cash Flow 7/10
March 2022 ₹-5 Cr ₹-13 Cr Negative Cash Flow 3/10