India Equity Analyst - Fundamental & Thematic, Beat the Street

Sudarshan Bhandari

India Equity Analyst - Fundamental & Thematic

Beat the Street

Beat The Street was founded by Nimish Maheshwari and Sudarshan Bhandari, both of whom are Chartered Accountants by Profession, known for their expert analysis in the fields of Business, Sectoral analysis, and Corporate governance.

With a strong social media presence of 45,000+ Subscribers across various platforms, they are considered trusted voices in the industry. Their insights and analysis have been featured in some of India’s most prominent publications, including the Economic Times, Dalal Street Investment Journal, The Morning Context, and The Ken.

Their analysis on Bankrupt & Insolvent companies has been instrumental in saving investors from significant losses. They have a keen eye for identifying red flags and has identified exclusive redflags earlier in Vedanta, Nykaa, Dhani Services, Adani and many more.

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Equity Bottom-Up

<ul>
<li>Gem Aromatics, a specialty ingredients manufacturer, opened its INR 450 crore IPO (Aug 19–21) at a INR 309–INR 325 price band. </li>
<li>The company supplies sticky, specification-heavy ingredients (mint derivatives, aroma chemicals) to marquee FMCG and F&amp;F players—segments benefiting from “China+1” and premiumisation in India.</li>
<li>Quality of customers and process capabilities are positives, but concentration, raw-material cycles and a pending land litigation temper enthusiasm, execution on citral scale-up is key.</li>
</ul>


Gem Aromatics, a specialty ingredients manufacturer, opened its INR 450 crore IPO (Aug 19–21) at a INR 309–INR 325 price band. 
The company supplies sticky, specification-heavy ingredients (mint derivatives, aroma chemicals) to marquee FMCG and F&amp;F players—segments benefiting from “China+1” and premiumisation in India.
Quality of customers and process capabilities are positives, but concentration, raw-material cycles and a pending land litigation temper enthusiasm, execution on citral scale-up is key.


Gem Aromatics IPO Analysis: A Niche Aroma Player

<ul>
<li>SHK reported 12% revenue growth in H1 FY26, but the reported EBITDA margin was compressed due to significant, deliberate investments in new growth initiatives and higher insurance costs.</li>
<li>The margin compression is temporary, a function of strategic, discretionary capex and opex, which are critical for achieving the management's ambitious 18–20% EBITDA margin target by FY27–FY28.</li>
<li>The market is discounting the value of this forward-looking investment phase; sustained execution on new capacity, coupled with global regulatory shifts favoring organized players, provides a strong catalyst path.</li>
</ul>


SHK reported 12% revenue growth in H1 FY26, but the reported EBITDA margin was compressed due to significant, deliberate investments in new growth initiatives and higher insurance costs.
The margin compression is temporary, a function of strategic, discretionary capex and opex, which are critical for achieving the management's ambitious 18–20% EBITDA margin target by FY27–FY28.
The market is discounting the value of this forward-looking investment phase; sustained execution on new capacity, coupled with global regulatory shifts favoring organized players, provides a strong catalyst path.


The Beat Ideas: S.H. Kelkar - A Capex Cycle Poised to Unlock Operating Leverage

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Gem Aromatics (123GEM IN)

Gem Aromatics IPO Analysis: A Niche Aroma Player

Gem Aromatics opens INR 450 crore IPO, supplying specialty ingredients to FMCG and F&F players, facing challenges with concentration and raw...

Sudarshan Bhandari

The Beat Ideas: S.H. Kelkar - A Capex Cycle Poised to Unlock Operating Leverage

SHK's H1 FY26 EBITDA margin was compressed due to investments in growth initiatives and higher insurance costs. Margin compression is temporary,...

Sudarshan Bhandari

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

Gem Aromatics IPO Analysis: A Niche Aroma Player

​Gem Aromatics opens INR 450 crore IPO, supplying specialty ingredients to FMCG and F&F players, facing challenges with concentration and raw...

Sudarshan Bhandari

The Beat Ideas: S.H. Kelkar - A Capex Cycle Poised to Unlock Operating Leverage

​SHK's H1 FY26 EBITDA margin was compressed due to investments in growth initiatives and higher insurance costs. Margin compression is temporary,...

Sudarshan Bhandari

Gem Aromatics opens INR 450 crore IPO, supplying specialty ingredients to FMCG and F&F players, facing challenges with concentration and raw...

SHK's H1 FY26 EBITDA margin was compressed due to investments in growth initiatives and higher insurance costs. Margin compression is temporary,...