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Oriental Aromatics Ltd. (IN:OAL)
:OAL
India Market
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Oriental Aromatics Ltd. (OAL) AI Stock Analysis

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IN:OAL

Oriental Aromatics Ltd.

(OAL)

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Neutral 46 (OpenAI - 4o)
Rating:46Neutral
Price Target:
₹333.00
▼(-0.89% Downside)
Oriental Aromatics Ltd. faces challenges with declining revenue and gross margins, and significant cash flow issues, which are major concerns. The technical indicators suggest a bearish trend, and the high P/E ratio points to potential overvaluation. These factors contribute to a cautious outlook on the stock.

Oriental Aromatics Ltd. (OAL) vs. iShares MSCI India ETF (INDA)

Oriental Aromatics Ltd. Business Overview & Revenue Model

Company DescriptionOriental Aromatics Limited manufactures and sells terpene chemicals, camphor, and other specialty aroma Ingredients in India. It offers specialty aroma chemicals for use in flavours, fragrances, and essential oils; synthetic camphor for medicinal and religious application; and terpineol, pine oils, astromusk, isobornyl acetate, and terpene resins. The company also provides fragrances for soaps, shampoos, hair oils, detergents, incense sticks, cosmetics and toiletries, household cleaners, air fresheners, etc.; and flavors for instant food, beverages, dairy, confectionery, oral hygiene, sweets, meat, snacks, healthcare, and bakery industries. In addition, it exports its products to Mexico, the United States, Argentina, Brazil, Colombia, France, Geneva, Germany, the Netherlands, Portugal, Spain, Switzerland, Turkey, the United Kingdom, Ukraine, Egypt, Nigeria, Bangladesh, China, Hong Kong, Indonesia, Japan, Malaysia, Myanmar, Oman, Pakistan, Singapore, Sri Lanka, Thailand, the United Arab Emirates, Vietnam, and Yemen. The company was formerly known as Camphor & Allied Products Limited and changed its name to Oriental Aromatics Limited in February 2018. Oriental Aromatics Limited was founded in 1955 and is headquartered in Mumbai, India.
How the Company Makes MoneyOriental Aromatics Ltd. makes money through the manufacture and sale of aroma chemicals, essential oils, and fragrances. The company generates revenue by supplying these products to different industries such as personal care, household care, and the food and beverage sector. Key revenue streams include direct sales to manufacturers who incorporate OAL's products into consumer goods, as well as partnerships and collaborations that expand its market reach. The company's strategic focus on R&D and its ability to innovate new products also play a crucial role in maintaining and growing its revenue base.

Oriental Aromatics Ltd. Financial Statement Overview

Summary
Oriental Aromatics Ltd. shows mixed financial performance with declining revenue and gross margins, but improved net profitability. While the balance sheet is strong with manageable debt levels and improving return on equity, the significant decline in cash flow poses liquidity risks that need urgent attention.
Income Statement
55
Neutral
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
60
Neutral
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
40
Negative
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.
BreakdownTTMDec 2025Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue8.92B9.28B8.36B8.49B8.66B7.60B
Gross Profit1.86B1.33B1.52B1.62B1.89B2.12B
EBITDA980.90M966.65M534.64M578.49M969.36M1.34B
Net Income430.22M343.28M91.04M197.43M533.02M861.89M
Balance Sheet
Total Assets0.0011.45B9.95B9.86B8.65B6.08B
Cash, Cash Equivalents and Short-Term Investments190.36M122.28M111.76M181.12M77.28M193.94M
Total Debt0.003.53B2.06B2.31B1.40B521.40M
Total Liabilities-6.56B4.82B3.63B3.62B2.60B1.44B
Stockholders Equity6.56B6.63B6.32B6.25B6.05B4.64B
Cash Flow
Free Cash Flow0.00-1.45B424.36M-689.99M-603.09M1.71B
Operating Cash Flow0.00-578.94M1.42B-223.00M-8.14M1.81B
Investing Cash Flow0.00-865.04M-989.66M-464.66M-594.42M-96.35M
Financing Cash Flow0.001.44B-482.00M781.48M514.81M-1.59B

Oriental Aromatics Ltd. Technical Analysis

Technical Analysis Sentiment
Negative
Last Price336.00
Price Trends
50DMA
352.62
Negative
100DMA
366.51
Negative
200DMA
358.10
Negative
Market Momentum
MACD
-0.89
Negative
RSI
46.78
Neutral
STOCH
31.39
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 336 is below the 20-day moving average (MA) of 338.96, below the 50-day MA of 352.62, and below the 200-day MA of 358.10, indicating a neutral trend. The MACD of -0.89 indicates Negative momentum. The RSI at 46.78 is Neutral, neither overbought nor oversold. The STOCH value of 31.39 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

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
72
Outperform
14.39B16.355.37%1.20%16.64%108.87%
67
Neutral
14.13B21.1610.88%0.46%16.35%55.49%
63
Neutral
9.92B10.879.51%0.52%-16.07%24.54%
54
Neutral
10.13B109.007.28%0.96%-19.46%-80.73%
46
Neutral
₹11.31B47.410.15%9.52%-8.72%
46
Neutral
9.33B180.62-0.52%9.59%
61
Neutral
$10.43B7.12-0.05%2.87%2.86%-36.73%
* Basic Materials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
IN:OAL
Oriental Aromatics Ltd.
336.00
-159.29
-32.16%
IN:EXCELINDUS
Excel Industries Limited
1,144.95
-358.95
-23.87%
IN:FAIRCHEMOR
Fairchem Organics Ltd
778.15
-425.37
-35.34%
IN:SHREEPUSHK
Shree Pushkar Chemicals & Fertilisers Ltd.
437.05
196.87
81.97%
IN:SRHHYPOLTD
Sree Rayalaseema Hi-Strength Hypo Limited
578.10
-134.12
-18.83%
IN:VALIANTORG
Valiant Organics Limited
333.10
-70.15
-17.40%

Oriental Aromatics Ltd. Corporate Events

Oriental Aromatics Announces 53rd AGM Details and Shareholder Communication
Jul 30, 2025

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.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Sep 25, 2025