Oriental AromaticsBOM:500078 +2.87%70 Gross Margin % is 20.24% as of Mar. 2026, which is 16% below its 10-year median of 24.03. GuruFocus rates BOM:500078 with a GF Score™ of 70/100 and a GF Value™ of ₹433.39 (Modestly Undervalued). The stock has 6 warning signs investors should review. Among 1,555 Chemicals companies, Oriental Aromatics ranks worse than 56.98% on this metric.
Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.
Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %
1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key
Oriental Aromatics had a gross margin of 20.24% for the quarter that ended in Mar. 2026 => Competition eroding margins
Be Aware
If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.
Oriental Aromatics Gross Margin % Related Terms
Oriental Aromatics Gross Margin % Historical Data
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The historical data trend for Oriental Aromatics's Gross Margin % can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
BOM:500078 vs LIN, SHW, ECL: Gross Margin % Comparison
For the Specialty Chemicals subindustry, Oriental Aromatics's Gross Margin %, along with its competitors' market caps and Gross Margin % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Oriental Aromatics Gross Margin % vs Chemicals Industry
For the Chemicals industry and Basic Materials sector, Oriental Aromatics's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Oriental Aromatics's Gross Margin % falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.
Oriental Aromatics (BOM:500078) has a Gross Margin % of 20.24% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Oriental Aromatics and its competitors. This is 16% below median its historical median of 24.03. Over the past decade, Oriental Aromatics' Gross Margin % has ranged from 17.46 to 33.08. According to the industry distribution chart, Oriental Aromatics ranks #886 out of 1555 companies in the Chemicals industry, placing it in the top 57%.
Is Oriental Aromatics' Gross Margin % too high?
Oriental Aromatics' current Gross Margin % of 20.24% is 16% below median its 10-year median of 24.03. Over the past 10 years, this metric has ranged from a low of 17.46 to a high of 33.08. The Chemicals industry median Gross Margin % is 23.44. Oriental Aromatics' value of 20.24% is 13.7% below this industry median. Based on the distribution chart, Oriental Aromatics ranks #886 out of 1555 companies in the Chemicals industry, which is below the industry midpoint. Overall, Oriental Aromatics has a GF Score™ of 70/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Oriental Aromatics' Gross Margin % compare to LIN and SHW?
According to the Chemicals industry distribution chart, Oriental Aromatics ranks #886 out of 1555 companies for Gross Margin %. This places Oriental Aromatics in the lower half of its industry. The industry median Gross Margin % is 23.44. Oriental Aromatics' value of 20.24% is 13.7% below this benchmark. Historically, Oriental Aromatics' own Gross Margin % has ranged from 17.46 to 33.08 over the past decade. While the company's 10-year median is 24.03 vs. the industry median of 23.44, Oriental Aromatics has consistently been below the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Gross Margin % for a Chemicals company?
The median Gross Margin % among Chemicals companies is 23.44, based on 1,555 companies in the industry. Companies in the top quartile (top 25%) have a Gross Margin % significantly above this median, while those in the bottom quartile fall well below. However, Gross Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Oriental Aromatics's current Gross Margin % of 20.24% is 13.7% below the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Gross Margin % mean?
A high Gross Margin % can signal that a stock is expensive relative to its fundamentals. Gross margin is the ratio of total gross profit to net sales. View historical data on Oriental Aromatics and its competitors. For the Chemicals industry, the median Gross Margin % is 23.44 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Oriental Aromatics's current Gross Margin % is 20.24%, which is 16% below median its own 10-year median of 24.03. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Oriental Aromatics stock overvalued right now?
Based on GuruFocus' analysis, Oriental Aromatics (BOM:500078) is currently considered Modestly Undervalued. The stock's GF Value™ is ₹433.39, compared to a current price of ₹317.30 — trading 26.8% below its estimated fair value. The current Gross Margin % is 20.24%, which is 16% below median its 10-year median of 24.03 and 13.7% below the Chemicals industry median of 23.44. Oriental Aromatics' overall GF Score™ is 70/100 with 6 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Gross Margin % calculated?
Gross Margin % is calculated from a company's financial statements. For Oriental Aromatics (BOM:500078), the current Gross Margin % is 20.24% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Oriental Aromatics (BOM:500078) Overvalued in 2026?
Based on GuruFocus' analysis, Oriental Aromatics stock appears to be undervalued.
The current stock price of ₹317.30 is trading 26.8% below its estimated GF Value™ of ₹433.39.
GuruFocus considers Oriental Aromatics to be Modestly Undervalued.
Key valuation signals for BOM:500078:
Gross Margin %: 20.24% (16% below median its 10-year median of 24.03)
GF Value™: ₹433.39 vs. price of ₹317.30 (26.8% below fair value)
Industry Position: 13.7% below the Chemicals median (#886 of 1555)
No single metric tells the full story. See the BOM:500078 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Oriental Aromatics Ltd is Indian based company engaged in the business of manufacturing of fine chemicals along with its principal products and services including Perfumery Chemicals, Camphor, and Isoborneol. The organization also manufactures and sells camphor, terpineols, resins, aromatic and terpene chemicals, fragrance chemicals, and fragrance chemical intermediaries. The firm offers a range of articles which consists of synthetic camphor, terpineols, pine oils, resins, astromusk, perfumery chemicals, and specialty chemicals. The primary segment of the company is the manufacturing of fine chemicals. It operates in two geographical segments: Domestic and Export. The company makes the majority of its revenue within operations in India.
70GF Score
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