Oriental Aromatics Ltd. (OAL) AI Stock Analysis

• Market Cap: ₹10.06B
• Dividend Yield: 0.17%
• Average Volume (3M): 819.00
• Price to Earnings (P/E): 102.6
• Beta (1Y): 1.01
• Revenue Growth: 12.25%
• EPS Growth: -74.52%
• Country: IN
• Employees: 735
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Chemicals - Specialty
• EPS (TTM): 0.22
• Shares Outstanding: 33,653,576
• 10 Day Avg. Volume: 1,141
• 30 Day Avg. Volume: 819
• PEG Ratio: 0.10
• Price to Book (P/B): 1.45
• Price to Sales (P/S): 1.04
• P/FCF Ratio: -6.64
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 46 Neutral
• Price Target: ₹279.00 ▼(-6.66% Downside)

Oriental Aromatics Ltd. faces significant challenges with bearish technical indicators and a high P/E ratio suggesting overvaluation. Financial performance is mixed, with strong balance sheet metrics but concerning cash flow issues. These factors contribute to a cautious outlook for the stock.

Positive Factors

Strong Balance Sheet

A low debt-to-equity ratio indicates prudent leverage management, providing financial stability and flexibility for future investments.

Improved Net Profitability

Improved net profitability suggests better cost management, which can enhance long-term earnings potential despite revenue challenges.

Return on Equity Improvement

An improving return on equity reflects enhanced profitability relative to shareholder investments, indicating efficient use of equity capital.

Negative Factors

Declining Revenue

Declining revenue growth indicates potential market challenges and could impact the company's ability to sustain long-term growth.

Cash Flow Challenges

Negative free cash flow highlights liquidity risks and the need for improved cash management, potentially affecting operational stability.

Decreased Gross Margins

Decreased gross margins suggest increased cost pressures, which could impact profitability and competitiveness in the long term.

Oriental Aromatics Ltd. Business Overview & Revenue Model

Company Description

Oriental Aromatics Ltd. (OAL) is a prominent manufacturer and supplier of fragrances and flavors, catering to various industries including food and beverages, personal care, and household products. With a commitment to quality and innovation, OAL specializes in creating a diverse range of aroma chemicals, natural extracts, and customized fragrance solutions that enhance product appeal and consumer experience. The company operates globally, leveraging advanced technology and a skilled workforce to meet the diverse needs of its clients while adhering to international quality standards.

How the Company Makes Money

Oriental Aromatics Ltd. generates revenue primarily through the sale of its fragrance and flavor products to a wide range of industries. Key revenue streams include direct sales of aroma chemicals and custom fragrance formulations, which are tailored to meet specific client needs. OAL also benefits from long-term partnerships with major brands in the food, beverage, and cosmetics sectors, ensuring a steady demand for its products. Additionally, the company invests in research and development to innovate and expand its product offerings, which helps attract new clients and retain existing ones. The combination of a diverse product portfolio, strategic partnerships, and a focus on innovation contributes significantly to OAL's earnings.

Oriental Aromatics Ltd. Financial Statement Overview

Summary

Oriental Aromatics Ltd. shows mixed financial performance with declining revenue and gross margins, but improved net profitability. The balance sheet remains strong with manageable debt levels and an improving return on equity. However, cash flow issues highlight liquidity risks, necessitating attention to cash management strategies.

Income Statement

Oriental Aromatics Ltd. has experienced fluctuating revenue growth with a decline of 11.8% in 2025 compared to 2024. Gross profit margins have decreased from 18.2% in 2024 to 14.4% in 2025, indicating increased cost pressures. Net profit margin improved from 1.1% to 3.7% in 2025, suggesting better cost management despite lower revenues. EBIT and EBITDA margins have also shown volatility, highlighting potential instability in operational efficiency.

Balance Sheet

The company maintains a relatively low debt-to-equity ratio of 0.53 in 2025, indicating prudent leverage management. Return on equity improved to 5.2% in 2025 from 1.4% in 2024, reflecting enhanced profitability relative to shareholder investments. The equity ratio stands at 57.9%, suggesting a balanced capital structure with moderate reliance on equity financing.

Cash Flow

The cash flow situation is concerning, with a significant decline in free cash flow from a positive position in 2024 (₹424.36 million) to a negative position in 2025 (₹-1,449.33 million). Operating cash flow to net income has turned negative, reflecting cash flow challenges despite profitability improvements. These factors indicate potential liquidity risks and the need for improved cash management.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	9.38B	9.23B	8.36B	8.49B	8.66B	7.09B
Gross Profit	2.06B	1.30B	1.52B	1.62B	1.89B	2.36B
EBITDA	912.00M	966.65M	534.64M	543.09M	969.36M	1.56B
Net Income	238.52M	343.28M	91.04M	197.43M	533.02M	1.02B
Balance Sheet
Total Assets	0.00	11.45B	9.95B	9.86B	8.65B	7.45B
Cash, Cash Equivalents and Short-Term Investments	111.85M	111.85M	111.76M	181.12M	77.28M	182.48M
Total Debt	0.00	3.53B	2.06B	2.31B	1.40B	787.02M
Total Liabilities	-6.63B	4.82B	3.63B	3.62B	2.60B	1.88B
Stockholders Equity	6.63B	6.63B	6.32B	6.25B	6.05B	5.57B
Cash Flow
Free Cash Flow	0.00	-1.45B	424.36M	-689.99M	-603.09M	-176.85M
Operating Cash Flow	0.00	-578.94M	1.42B	-223.00M	-8.14M	173.41M
Investing Cash Flow	0.00	-865.04M	-989.66M	-464.66M	-594.42M	-349.46M
Financing Cash Flow	0.00	1.44B	-482.00M	781.48M	514.81M	156.93M

Oriental Aromatics Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 298.90
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:OAL, the sentiment is Negative. The current price of 298.9 is below the 20-day moving average (MA) of 300.62, below the 50-day MA of 326.52, and below the 200-day MA of 342.98, indicating a bearish trend. The MACD of -9.54 indicates Negative momentum. The RSI at 44.49 is Neutral, neither overbought nor oversold. The STOCH value of 61.55 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:OAL.

Oriental Aromatics Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SHREEPUSHK	68 Neutral	₹12.21B	17.05	―	0.53%	28.67%	50.12%
SRHHYPOLTD	63 Neutral	₹9.14B	10.25	―	0.56%	-7.93%	11.44%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
EXCELINDUS	61 Neutral	₹11.79B	16.02	―	1.47%	8.06%	-3.28%
FAIRCHEMOR	47 Neutral	₹8.91B	147.03	―	1.09%	-22.10%	-85.56%
VALIANTORG	46 Neutral	₹7.39B	31.05	―	―	16.43%	―
OAL	46 Neutral	₹10.06B	102.56	―	0.17%	12.25%	-74.52%

Oriental Aromatics Ltd. Corporate Events

Oriental Aromatics Announces 53rd AGM Details and Shareholder Communication

Oriental Aromatics Limited has announced the details of its 53rd Annual General Meeting (AGM), scheduled for August 21, 2025, to be held via video conference. The company has communicated with shareholders who have not registered their email addresses, providing them with access to the Annual Report for the financial year 2024-25 and the AGM notice. This initiative ensures all shareholders are informed and can participate in the AGM, reflecting the company’s commitment to transparency and shareholder engagement.