Oriental Aromatics Ltd. (OAL) AI Stock Analysis

• Market Cap: ₹11.51B
• Dividend Yield: 0.15%
• Average Volume (3M): 1.05K
• Price to Earnings (P/E): 47.7
• Beta (1Y): 0.93
• Revenue Growth: 9.52%
• EPS Growth: -8.72%
• Country: IN
• Employees: 735
• Sector: Basic Materials
• Sector Strength: 64
• Industry: Chemicals - Specialty
• EPS (TTM): 0.15
• Shares Outstanding: 33,653,576
• 10 Day Avg. Volume: 773
• 30 Day Avg. Volume: 1,055
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: ₹385.00
• Price Target Upside: 12.54% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 53 Neutral
• Price Target: ₹385.00 ▲(12.54% Upside)

The stock score reflects mixed financial performance with some concerns about liquidity due to negative cash flow. The technical analysis suggests neutral momentum, while valuation metrics indicate potential overvaluation. Improved cost management and profitability are positives, but the need for cash flow stabilization is crucial.

Oriental Aromatics Ltd. Business Overview & Revenue Model

Company Description

Oriental Aromatics Ltd. (OAL) is a leading Indian company specializing in the production and distribution of a wide range of aroma chemicals, essential oils, and fragrances. The company operates in the fragrance and flavor industry, providing high-quality products to various sectors, including personal care, household products, and food and beverages. With a strong emphasis on research and development, OAL is committed to innovation and sustainability in its product offerings.

How the Company Makes Money

Oriental 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

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 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	8.92B	9.28B	8.36B	8.49B	8.66B	7.60B
Gross Profit	1.86B	1.33B	1.52B	1.62B	1.89B	2.12B
EBITDA	980.90M	966.65M	534.64M	578.49M	969.36M	1.34B
Net Income	430.22M	343.28M	91.04M	197.43M	533.02M	861.89M
Balance Sheet
Total Assets	0.00	11.45B	9.95B	9.86B	8.65B	6.08B
Cash, Cash Equivalents and Short-Term Investments	190.36M	122.28M	111.76M	181.12M	77.28M	193.94M
Total Debt	0.00	3.53B	2.06B	2.31B	1.40B	521.40M
Total Liabilities	-6.56B	4.82B	3.63B	3.62B	2.60B	1.44B
Stockholders Equity	6.56B	6.63B	6.32B	6.25B	6.05B	4.64B
Cash Flow
Free Cash Flow	0.00	-1.45B	424.36M	-689.99M	-603.09M	1.71B
Operating Cash Flow	0.00	-578.94M	1.42B	-223.00M	-8.14M	1.81B
Investing Cash Flow	0.00	-865.04M	-989.66M	-464.66M	-594.42M	-96.35M
Financing Cash Flow	0.00	1.44B	-482.00M	781.48M	514.81M	-1.59B

Oriental Aromatics Ltd. Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 342.10
• 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 Neutral. The current price of 342.1 is above the 20-day moving average (MA) of 336.93, below the 50-day MA of 364.14, and below the 200-day MA of 372.18, indicating a neutral trend. The MACD of -9.65 indicates Negative momentum. The RSI at 44.30 is Neutral, neither overbought nor oversold. The STOCH value of 33.09 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for IN:OAL.

Oriental Aromatics Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
EXCELINDUS	72 Outperform	₹15.02B	17.06		1.15%	16.64%	108.87%
SRHHYPOLTD	68 Neutral	₹10.49B	11.51		0.49%	-16.07%	24.53%
SHREEPUSHK	65 Neutral	₹10.16B	15.20		0.44%	16.35%	55.54%
Sector *	61 Neutral	$10.27B	6.37	0.76%	2.91%	3.10%	-36.03%
FAIRCHEMOR	54 Neutral	₹10.19B	109.59		0.95%	-19.46%	-80.73%
OAL	53 Neutral	₹11.51B	47.68		0.15%	9.52%	-8.72%
VALIANTORG	45 Neutral	₹9.53B	184.36		―	9.59%	―

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.