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Last Updated on: 19 June, 2024|Author: Getaka | Social: X Twitter Profile

Fundamental Analysis of Oriental Aromatics Ltd

About the Company - Oriental Aromatics Ltd

Oriental Aromatics Ltd. is a Public Limited Listed company incorporated on 29/03/1961 and has its registered office in the State of Gujarat, India. Company’s Corporate Identification Number(CIN) is L17299MH1972PLC285731 and registration number is 285731. Currently Company is involved in the business activities of Manufacture of synthetic aromatic products. Company’s Total Operating Revenue is Rs. 868.79 Cr. and Equity Capital is Rs. 16.83 Cr. for the Year ended 31/03/2022.
INDUSTRYADDRESSCONTACT
Chemicals - Organic - Others133 Jehangir Building, 2nd Floor, Mumbai Maharashtra 400001investors@orientalaromatics.com
http://www.orientalaromatics.com
Management
NamePosition Held
Mr. Dharmil A BodaniChairman & Managing Director
Mr. Ranjit A PuranikIndependent Director
Mr. Harshvardhan A PiramalIndependent Director
Ms. Amruda V NairIndependent Director
Mr. Prakash V MehtaIndependent Director
Mr. Shyamal A BodaniExecutive Director
Mr. Satish K RayExecutive Director - Operations

Basic Stock Data of Oriental Aromatics Ltd

Last Updated: June 19, 2024, 2:30 pm

Market Cap 1,313 Cr.
Current Price 390
High / Low503/293
Stock P/E144
Book Value 188
Dividend Yield0.13 %
ROCE4.06 %
ROE1.45 %
Face Value 5.00
PEG Ratio-2.02

Competitors of Oriental Aromatics Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
Ambani Organics Ltd 72.0 Cr. 102163/99.0 73.80.00 %2.12 %5.39 % 10.0
Archit Organosys Ltd 88.5 Cr. 43.166.3/35.1111 31.31.15 %3.92 %1.27 % 10.0
BASF India Ltd 21,440 Cr. 4,9535,000/2,42138.1 7450.30 %25.0 %19.0 % 10.0
Crestchem Ltd 40.5 Cr. 135145/58.418.8 15.80.00 %79.7 %57.3 % 10.0
Jocil Ltd 174 Cr. 196263/163101 2371.27 %1.40 %0.83 % 10.0
Industry Average4,672.87 Cr1,238.8645.62215.660.41%17.72%13.51%8.70

Oriental Aromatics Ltd Quarterly Results

MonthDec 2020Mar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023
Sales190.68221.38229.67230.47205.78202.87233.55220.76199.42195.34195.69226.82197.41
Expenses137.29188.13195.24210.66189.66180.72217.13206.19185.39186.16194.77215.81183.30
Operating Profit53.3933.2534.4319.8116.1222.1516.4214.5714.039.180.9211.0114.11
OPM %28.00%15.02%14.99%8.60%7.83%10.92%7.03%6.60%7.04%4.70%0.47%4.85%7.15%
Other Income0.671.121.061.990.042.262.032.350.610.740.582.812.16
Interest0.221.060.650.980.662.692.403.324.163.154.605.466.87
Depreciation4.233.993.994.084.324.624.674.814.984.974.814.944.96
Profit before tax49.6129.3230.8516.7411.1817.1011.388.795.501.80-7.913.424.44
Tax %26.71%23.57%26.42%27.36%28.80%38.71%26.10%27.99%30.91%33.89%23.64%29.24%41.22%
Net Profit36.3622.4122.7012.167.9610.488.416.343.801.19-6.052.422.61
EPS in Rs10.806.666.753.612.373.112.501.881.130.35-1.800.720.78

Last Updated: June 11, 2024, 3:10 am

Oriental Aromatics Ltd Quarterly Chart

Oriental Aromatics Ltd Profit & Loss

Last Updated: May 27, 2024, 5:52 am

MonthMar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023TTM
Sales458506755760709873854815
Expenses400441639633553780799780
Operating Profit5765116127156935435
OPM %13%13%15%17%22%11%6%4%
Other Income6-0-271466
Interest571312241320
Depreciation1415181917171920
Profit before tax44438310313776272
Tax %37%42%31%16%26%30%28%
Net Profit2825578610253200
EPS in Rs13.547.4316.9825.6130.2915.845.870.05
Dividend Payout %3%7%6%10%8%9%9%

Oriental Aromatics Ltd Profit & Loss Yearly Chart

Oriental Aromatics Ltd Growth

Compounded Sales Growth
10 Years:%
5 Years:11%
3 Years:4%
TTM:-5%
Compounded Profit Growth
10 Years:%
5 Years:-5%
3 Years:-39%
TTM:-99%
Stock Price CAGR
10 Years:20%
5 Years:6%
3 Years:-23%
1 Year:-20%
Return on Equity
10 Years:%
5 Years:13%
3 Years:10%
Last Year:3%

Last Updated: April 16, 2024, 1:16 pm

Oriental Aromatics Ltd Balance Sheet

MonthMar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Sep 2023
Equity Capital58171717171717
Reserves311329375447540588608603
Borrowings1051321835178140231218
Other Liabilities691039893110120130102
Total Liabilities490573673608745865986940
Fixed Assets211212245236236265273268
CWIP15401213255372
Investments00000000
Other Assets264321428370496574661600
Total Assets490573673608745865986940

Oriental Aromatics Ltd Reserves and Borrowings Chart

Oriental Aromatics Ltd Cash Flow

MonthMar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Cash from Operating Activity 16-2318117-1-22
Cash from Investing Activity -31-12-10-35-59-46
Cash from Financing Activity 1536-159165178
Net Cash Flow0012-2-99

Oriental Aromatics Ltd Financial Efficiency Indicators

MonthMar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Debtor Days80977773978181
Inventory Days141148149124211183233
Days Payable41683943665255
Cash Conversion Cycle180177187154242213259
Working Capital Days166163166130194190223
ROCE %11%19%21%24%12%5%

Oriental Aromatics Ltd Financial Efficiency Indicators Chart

Oriental Aromatics Ltd Share Holding Pattern

MonthDec 2020Mar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023
Promoters74.17%74.17%74.17%74.17%74.17%74.17%74.17%74.17%74.17%74.17%74.17%74.17%
FIIs0.00%0.00%0.04%0.06%0.08%0.11%0.14%0.14%0.13%0.13%0.13%0.11%
DIIs0.21%0.09%0.00%0.01%0.01%0.64%0.76%0.76%0.76%0.78%0.75%0.61%
Public25.62%25.74%25.79%25.77%25.75%25.09%24.93%24.92%24.92%24.91%24.96%25.11%
No. of Shareholders18,81919,99921,56227,42228,96028,41528,33829,02928,57927,02426,56126,730

Oriental Aromatics Ltd Shareholding Pattern Chart

No. of Oriental Aromatics Ltd Shareholders

Oriental Aromatics Ltd Mutual Fund Holdings

Fund NameNo of SharesAUM (%)Amount Invested (Cr)Previous Number of SharesPrevious DatePercentage Change
PGIM India Small Cap Fund190,1920.466.71190,1922024-06-150%

Oriental Aromatics Ltd ROCE Trend

Oriental Aromatics Ltd EPS Trend

Oriental Aromatics Ltd Key Financial Ratios

MonthMar 24Mar 23Mar 22Mar 21Mar 20
FaceValue5.005.005.005.005.00
Basic EPS (Rs.)2.715.8715.8430.2925.61
Diluted EPS (Rs.)2.715.8715.8430.2925.61
Cash EPS (Rs.)8.5911.6420.8935.4831.26
Book Value[Excl.RevalReserv]/Share (Rs.)187.90185.70179.84165.59137.92
Book Value[Incl.RevalReserv]/Share (Rs.)187.90185.70179.84165.59137.92
Revenue From Operations / Share (Rs.)248.53252.30258.16210.63225.80
PBDIT / Share (Rs.)16.1117.8128.8046.5739.77
PBIT / Share (Rs.)10.2312.0423.7541.3834.12
PBT / Share (Rs.)4.188.1722.5540.7030.58
Net Profit / Share (Rs.)2.715.8715.8430.2925.61
NP After MI And SOA / Share (Rs.)2.715.8715.8430.2925.61
PBDIT Margin (%)6.487.0511.1522.1117.61
PBIT Margin (%)4.114.779.1919.6415.11
PBT Margin (%)1.683.238.7319.3213.54
Net Profit Margin (%)1.082.326.1314.3811.34
NP After MI And SOA Margin (%)1.082.326.1314.3811.34
Return on Networth / Equity (%)1.433.158.8018.2918.56
Return on Capital Employeed (%)4.805.8811.7623.7423.22
Return On Assets (%)0.912.006.1613.6814.16
Long Term Debt / Equity (X)0.080.050.070.000.00
Total Debt / Equity (X)0.320.360.230.130.09
Asset Turnover Ratio (%)0.840.911.081.051.19
Current Ratio (X)1.932.152.993.023.18
Quick Ratio (X)0.930.911.451.581.76
Inventory Turnover Ratio (X)1.651.932.392.132.66
Dividend Payout Ratio (NP) (%)0.000.009.478.2513.66
Dividend Payout Ratio (CP) (%)0.000.007.177.0411.19
Earning Retention Ratio (%)0.000.0090.5391.7586.34
Cash Earning Retention Ratio (%)0.000.0092.8392.9688.81
Interest Coverage Ratio (X)2.664.6023.9667.8311.22
Interest Coverage Ratio (Post Tax) (X)1.452.5214.1845.128.23
Enterprise Value (Cr.)1198.171395.232504.872032.54474.66
EV / Net Operating Revenue (X)1.431.642.882.870.62
EV / EBITDA (X)22.1023.2825.8412.973.55
MarketCap / Net Operating Revenue (X)1.201.392.732.790.59
Retention Ratios (%)0.000.0090.5291.7486.33
Price / BV (X)1.591.893.923.540.97
Price / Net Operating Revenue (X)1.201.392.732.790.59
EarningsYield0.010.010.020.050.19

Oriental Aromatics Ltd Profitability Ratios (%)

Oriental Aromatics Ltd Liquidity Ratios

Oriental Aromatics Ltd Liquidity Ratios (%)

Oriental Aromatics Ltd Interest Coverage Ratios (%)

Oriental Aromatics Ltd Valuation Ratios

Fair Value

Fair Value: 393.05

Calculation basis:

  • Fair value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100)
  • P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
  • Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance
  • Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
  • Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.

This formula allows us to gauge the fair value of the stock by analyzing its fundamental indicators.

Undervalued: 0.78% compared to the current price 390

Intrinsic Value: 112.87

Calculation basis:

  • Fair value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100) * (1 + EPS CAGR for Last 5 Years)
  • P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
  • Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance.
  • Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
  • Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.
  • EPS CAGR (Compound Annual Growth Rate): Represents the geometric mean growth rate of earnings per share over the last 5 years. It provides insight into the historical growth trajectory of the company's earnings.

This formula allows us to gauge the fair value of the stock by analyzing its fundamental indicators along with EPS growth.

Overvalued: 71.06% compared to the current price ₹390

Last 5 Year EPS CAGR: -71.28%

*Investments are subject to market risks

Strength and Weakness of Oriental Aromatics Ltd

StrengthWeakness
  1. The company has higher reserves (475.13 cr) compared to borrowings (142.25 cr), indicating strong financial stability.
  2. The company has shown consistent growth in sales (716.25 cr) and profit (64.38 cr) over the years.
  1. The stock has a low average ROCE of 13.14%, which may not be favorable.
  2. The stock has a high average Working Capital Days of 176.00, which may not be favorable.
  3. The stock has a high average Cash Conversion Cycle of 201.71, which may not be favorable.

Should I Buy Oriental Aromatics Ltd?

  • Considering all of the following key financial indicators, prospective investors are encouraged to conduct thorough research and seek professional guidance before considering any investment in Oriental Aromatics Ltd:
    1. Net Profit Margin: 1.08%
      • Net Profit Margin: This metric indicates the percentage of profit a company makes from its total revenue. A higher net profit margin is generally desirable as it reflects better profitability.
    2. ROCE: 4.80% (Industry Average ROCE: %)
      • ROCE (Return on Capital Employed): ROCE measures a company's profitability and the efficiency with which its capital is employed. A higher ROCE indicates efficient use of capital.
    3. ROE%: 1.43% (Industry Average ROE: %)
      • ROE (Return on Equity): ROE measures a company's profitability relative to shareholders' equity. A higher ROE indicates efficient use of shareholders' funds.
    4. Interest Coverage Ratio (Post Tax): 1.45
      • Interest Coverage Ratio: The interest coverage ratio measures a company's ability to cover its interest payments on outstanding debt. A ratio greater than 2 is generally considered healthy as it indicates the company can meet its interest obligations comfortably.
    5. Quick Ratio: 0.93
      • Quick Ratio: The quick ratio assesses a company's ability to cover its short-term liabilities with its most liquid assets. A ratio higher than 1 suggests the company can meet its short-term obligations without relying heavily on inventory.
    6. ✗ Stock P/E: 144 (Industry average Stock P/E: )
      • Stock P/E (Price-to-Earnings) Ratio: The P/E ratio compares a company's current share price to its earnings per share. A lower P/E ratio relative to industry peers or historical values may indicate that the stock is undervalued.
    7. Total Debt / Equity: 0.32
      • Total Debt / Equity: This ratio measures a company's financial leverage by comparing its total debt to its total equity. A lower ratio indicates lower financial risk and greater financial stability.
    The current analysis is available for review. It's important to conduct thorough research and consider consulting with financial professionals before making any investment decisions.
    Stock Rating:

FAQ

What is the latest fair value of Oriental Aromatics Ltd?

The latest fair value of Oriental Aromatics Ltd is ₹393.05.

What is the Market Cap of Oriental Aromatics Ltd?

The Market Cap of Oriental Aromatics Ltd is 1,313 Cr..

What is the current Stock Price of Oriental Aromatics Ltd as on 19 June 2024?

The current stock price of Oriental Aromatics Ltd as on 19 June 2024 is ₹390.

What is the High / Low of Oriental Aromatics Ltd stocks in FY 2024?

In FY 2024, the High / Low of Oriental Aromatics Ltd stocks is 503/293.

What is the Stock P/E of Oriental Aromatics Ltd?

The Stock P/E of Oriental Aromatics Ltd is 144.

What is the Book Value of Oriental Aromatics Ltd?

The Book Value of Oriental Aromatics Ltd is 188.

What is the Dividend Yield of Oriental Aromatics Ltd?

The Dividend Yield of Oriental Aromatics Ltd is 0.13 %.

What is the ROCE of Oriental Aromatics Ltd?

The ROCE of Oriental Aromatics Ltd is 4.06 %.

What is the ROE of Oriental Aromatics Ltd?

The ROE of Oriental Aromatics Ltd is 1.45 %.

What is the Face Value of Oriental Aromatics Ltd?

The Face Value of Oriental Aromatics Ltd is 5.00.

About the Author

Author Avatar
Getaka

Getaka, CFA, a financial analyst with 15 years of experience in the industry. Getaka holds an MBA degree and the Chartered Financial Analyst designation, demonstrating his profound understanding of financial analysis and investment management. Throughout his career, he has conducted numerous financial analyses and due diligence processes for companies in the industry, and has a strong track record of identifying key trends and opportunities. He leverages his expertise to deliver a thorough financial analysis of a company, encompassing its financial performance, key ratios, future prospects, and risks. Getaka is committed to providing accurate, reliable, and trustworthy information to help readers make informed decisions about their finances and investments.

Disclaimer: This article is for informational purposes only and should not be construed as financial advice. The author is not a SEBI registered financial advisor and does not have any vested interest in Oriental Aromatics Ltd. Investors are advised to conduct their own due diligence and consult with a financial professional before making any investment decisions. The information provided in this article is based on publicly available data and the author's analysis, but it may not be comprehensive or up-to-date. The author and getaka.co.in are not responsible for any errors or omissions in the content. This article is not intended to promote any particular investment strategy or recommendation, and readers should consult with their own financial advisors before making any investment decisions. Data Source: NSE