Chemical stock jumps 5% after its facility begins production of cooling agents and clove products

Synopsis: Gem Aromatics surged 5% as its Dahej unit began producing cooling agents and clove products, boosting capacity and strengthening its aroma ingredients presence.

The shares of a Micro-Cap company, specializing in manufacturing and supplying specialty ingredients like essential oils, aroma chemicals, and value-added derivatives, focusing on mint, clove, and eucalyptus-based products, jumped upto 5 percent as Dahej Facility Begins Production of Cooling Agents and Clove Products.

With a market capitalization of Rs. 725.31 crores on Friday, the shares of Gem Aromatics Ltd rose by upto 5 percent, making a high of Rs. 147.00 per share compared to its previous closing price of Rs. 139.95 per share. 

What Happened

Gem Aromatics Ltd, engaged in manufacturing and supplying specialty ingredients like essential oils, aroma chemicals, and value-added derivatives, has started commercial production of Cooling Agents (WS-23 & WS-03) and Clove Products (Clove Oil and Eugenol) at its new manufacturing facility in Dahej, Gujarat. 

This production is under Krystal Ingredients Private Limited, a fully owned subsidiary of the company. The new plant uses advanced technology and quality systems to produce high-purity products for both domestic and international markets. This expansion enhances the company’s presence in specialized sectors like cooling agents and spice-based aroma ingredients.

Mr Yash Vipul Parekh, Managing Director & CEO, stated: “The start of commercial production is a key milestone for GEM Aromatics, reinforcing our commitment to building future-ready capabilities. Our new facility enhances product purity, consistency, and performance. The launch of cooling agents, along with upcoming offerings like Citral and Phenol derivatives, will diversify our portfolio and reduce reliance on Mint derivatives. With a focus on innovation, sustainability, and next-gen aroma molecules, GEM Aromatics is well-positioned for continued growth.”

Financials & Others

The company’s revenue declined by 20.22 percent from Rs. 112.22 crore in September 2024 to Rs. 89.53 crore in September 2025. Meanwhile, Net profit from Rs. 9.74 crores turned to a loss of  Rs. 2.58 crores during the same period.

The company shows strong profitability with an ROCE of 19.4% and a ROE of 20.7%, indicating efficient use of both capital employed and shareholders’ equity. Its debt-to-equity ratio of 0.32 suggests a comfortably low leverage position. With a PEG ratio of 0.91, the stock appears reasonably priced relative to its expected growth, potentially signalling undervaluation.

GEM Aromatics Ltd is one of the leading manufacturers of speciality ingredients, essential oils, aroma chemicals, and value-added derivatives. Led by a management team with nearly three decades of industry experience. 

With a diverse portfolio of over 70 products spanning Mint & Mint Derivatives, Clove & Clove Derivatives, and other Synthetic and Natural ingredients, GEM Aromatics continues to expand into new categories such as Citral Derivatives, Phenol Derivatives, Cooling Agents, Safranal, and Damascones.

Its products cater to industries including oral care, cosmetics, pharmaceuticals, nutraceuticals, wellness, and personal care, serving over 225 domestic and 44 global customers across 18 countries. The Company partners with several leading brands, including Colgate-Palmolive, Dabur, Patanjali, SH Kelkar, and Symrise.

The company operates three manufacturing facilities located in Uttar Pradesh, Gujarat, and Daman & Diu, with a total installed capacity of 5,346 MTPA. A major expansion at its Dahej plant is currently underway.

Written by Sridhar J

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