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Last Updated on: 28 February, 2024|Author: Getaka | Social: X Twitter Profile

Fundamental Analysis of Solara Active Pharma Sciences Ltd

About the Company - Solara Active Pharma Sciences Ltd

Solara Active Pharma Sciences Ltd. is a Public Limited Listed company incorporated on 23/02/2017 and has its registered office in the State of Maharashtra, India. Company’s Corporate Identification Number(CIN) is L24230MH2017PLC291636 and registration number is 291636. Currently Company is involved in the business activities of Manufacture of medicinal substances used in the manufacture of pharmaceuticals: antibiotics, endocrine products, basic vitamins; opium derivatives; sulpha drugs; serums and plasmas; salicylic acid, its salts and esters; glycosides and vegetable alkaloids; chemically pure suger etc.. Company’s Total Operating Revenue is Rs. 1268.34 Cr. and Equity Capital is Rs. 36.00 Cr. for the Year ended 31/03/2022.
INDUSTRYADDRESSCONTACT
Pharmaceuticals201, Devavrata, Sector 17, Vashi, New Mumbai Maharashtra 400703investors@solara.co.in
http://www.solara.co.in
Management
NamePosition Held
Mr. Poorvank PurohitManaging Director & CEO
Mr. Kartheek Chintalapati RajuNon Executive Director
Mr. Ankur Nand ThadaniNon Executive Director
Mr. Arun KumarNon Executive Director
Mr. R RamakrishnanIndependent Director
Dr. Kausalya SanthanamIndependent Director

Solara Active Pharma Sciences Ltd. Share Price Update

Share PriceValue
Today₹467.10
Previous Day₹459.55

Basic Stock Data of Solara Active Pharma Sciences Ltd

Market Cap 1,675 Cr.
Current Price 465
High / Low507/286
Stock P/E
Book Value 407
Dividend Yield0.00 %
ROCE1.80 %
ROE1.44 %
Face Value 10.0

Data Source: screener.in

Competitors of Solara Active Pharma Sciences Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
Pharmaids Pharmaceuticals Ltd 126 Cr. 58.979.2/19.7 9.600.00 %64.4 %49.1 % 10.0
Orchid Pharma Ltd 6,122 Cr. 1,2071,360/36271.8 2180.00 %4.97 %0.95 % 10.0
Shilpa Medicare Ltd 3,813 Cr. 439455/222 2050.00 %0.81 %1.71 % 1.00
Vivimed Labs Ltd 41.0 Cr. 4.957.76/4.85 21.30.00 %51.5 %163 % 2.00
Glaxosmithkline Pharmaceuticals Ltd 36,517 Cr. 2,1562,650/1,22756.9 90.91.47 %36.4 %26.8 % 10.0
Industry Average9,323.80 Cr773.1725.74108.960.29%31.62%48.31%6.60

Solara Active Pharma Sciences Ltd Quarterly Results

MonthSep 2020Dec 2020Mar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023
Sales398427444406402100361330338395381352425
Expenses300321345314330197347318311350332333388
Operating Profit98105999172-9714132845491938
OPM %25%25%22%23%18%-97%4%4%8%11%13%5%9%
Other Income6810533574752-4
Interest19202519171821222224222524
Depreciation28272728282828282928262626
Profit before tax5766575030-140-31-31-1915-29-17
Tax %0%0%0%0%0%0%106%47%48%22%25%35%0%
Net Profit5766575030-1402-16-1004-19-17
EPS in Rs15.8218.3215.7713.958.27-38.910.52-4.56-2.770.131.05-5.43-4.77

Solara Active Pharma Sciences Ltd Quarterly Chart

Solara Active Pharma Sciences Ltd Profit & Loss

MonthMar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023TTM
Sales5211,3871,3221,6171,2681,4441,553
Expenses4641,1741,0621,2311,1881,3091,402
Operating Profit5721326038681134151
OPM %11%15%20%24%6%9%10%
Other Income2122729162210
Interest25827884759095
Depreciation348394109112111107
Profit before tax060115222-91-45-41
Tax %-70%1%0%0%36%50%
Net Profit059115221-58-22-32
EPS in Rs23.0942.6861.62-16.15-6.16-9.02
Dividend Payout %0%22%5%11%0%0%

Solara Active Pharma Sciences Ltd Profit & Loss Yearly Chart

Solara Active Pharma Sciences Ltd Growth

Compounded Sales Growth
10 Years:%
5 Years:23%
3 Years:3%
TTM:-1%
Compounded Profit Growth
10 Years:%
5 Years:%
3 Years:%
TTM:-949%
Stock Price CAGR
10 Years:%
5 Years:5%
3 Years:-30%
1 Year:32%
Return on Equity
10 Years:%
5 Years:5%
3 Years:3%
Last Year:-1%

Solara Active Pharma Sciences Ltd Balance Sheet

MonthMar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Sep 2023
Equity Capital25262736363636
Reserves7399301,0591,5531,4891,4641,427
Borrowings6335387226211,0371,013985
Other Liabilities425466346404383386427
Total Liabilities1,8211,9602,1532,6142,9452,8992,875
Fixed Assets1,0861,2181,3971,3821,3561,3641,313
CWIP71404088239238250
Investments1000022
Other Assets6637017161,1441,3501,2951,310
Total Assets1,8211,9602,1532,6142,9452,8992,875

Solara Active Pharma Sciences Ltd Reserves and Borrowings Chart

Solara Active Pharma Sciences Ltd Cash Flow

MonthMar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Cash from Operating Activity 49166242155-242156
Cash from Investing Activity -85-113-359-106-243-81
Cash from Financing Activity 68-239792334-113
Net Cash Flow3130-20142-151-38

Solara Active Pharma Sciences Ltd Financial Efficiency Indicators

MonthMar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Debtor Days1847663109141136
Inventory Days252111170149321258
Days Payable420127132156154142
Cash Conversion Cycle1660101102308252
Working Capital Days1073467118251213
ROCE %10%12%15%-0%2%

Solara Active Pharma Sciences Ltd Financial Efficiency Indicators Chart

Solara Active Pharma Sciences Ltd Share Holding Pattern

MonthMar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023
Promoters44.11%41.07%41.07%39.51%39.71%40.40%40.41%40.41%40.98%39.31%37.19%30.49%
FIIs13.65%16.60%17.28%18.15%19.42%17.93%18.47%19.26%19.30%18.71%17.86%16.62%
DIIs3.98%6.41%6.05%5.40%3.64%3.10%2.97%3.01%2.75%1.75%1.79%1.75%
Public38.26%35.92%35.60%36.94%37.22%38.57%38.16%37.32%36.95%40.22%43.16%51.14%
No. of Shareholders58,90767,19765,44973,00077,22882,71083,31979,14976,32575,41774,47372,918

Solara Active Pharma Sciences Ltd Shareholding Pattern Chart

No. of Solara Active Pharma Sciences Ltd Shareholders

Solara Active Pharma Sciences Ltd Mutual Fund Holdings

Fund NameNo of SharesAUM (%)Amount Invested (Cr)
Aditya Birla Sun Life Flexi Cap Fund4200000.0815.17
Aditya Birla Sun Life Midcap Fund1300000.094.7
Aditya Birla Sun Life Manufacturing Equity Fund650000.292.35
Motilal Oswal S&P BSE Healthcare ETF1830.070.01

Solara Active Pharma Sciences Ltd ROCE Trend

Solara Active Pharma Sciences Ltd EPS Trend

Solara Active Pharma Sciences Ltd Key Financial Ratios

MonthMar 23Mar 22Mar 21Mar 20Mar 19
FaceValue10.0010.0010.0010.0010.00
Basic EPS (Rs.)-6.16-16.1869.0044.2921.77
Diluted EPS (Rs.)-6.16-16.1864.5342.8221.73
Cash EPS (Rs.)24.7015.0191.8777.7255.29
Book Value[Excl.RevalReserv]/Share (Rs.)417.35424.22443.42370.29332.21
Book Value[Incl.RevalReserv]/Share (Rs.)417.35424.22443.42370.29332.21
Revenue From Operations / Share (Rs.)401.06352.32450.13492.27538.01
PBDIT / Share (Rs.)43.4527.77115.43106.8890.48
PBIT / Share (Rs.)12.57-3.4285.1871.8158.24
PBT / Share (Rs.)-12.45-25.3161.6642.8026.26
Net Profit / Share (Rs.)-6.18-16.1961.6242.6523.06
NP After MI And SOA / Share (Rs.)-6.16-16.1561.6442.6923.09
PBDIT Margin (%)10.837.8825.6421.7116.81
PBIT Margin (%)3.13-0.9718.9214.5810.82
PBT Margin (%)-3.10-7.1813.698.694.88
Net Profit Margin (%)-1.54-4.5913.688.664.28
NP After MI And SOA Margin (%)-1.53-4.5813.698.674.29
Return on Networth / Equity (%)-1.47-3.8113.9311.576.98
Return on Capital Employeed (%)2.51-0.6516.7613.5411.50
Return On Assets (%)-0.76-1.968.475.323.03
Long Term Debt / Equity (X)0.150.180.090.230.26
Total Debt / Equity (X)0.660.670.320.590.51
Asset Turnover Ratio (%)0.490.450.670.640.00
Current Ratio (X)1.081.161.340.920.99
Quick Ratio (X)0.570.610.960.530.66
Inventory Turnover Ratio (X)1.371.972.382.490.00
Dividend Payout Ratio (NP) (%)0.00-18.538.9013.630.00
Dividend Payout Ratio (CP) (%)0.0019.905.977.480.00
Earning Retention Ratio (%)0.00118.5391.1086.370.00
Cash Earning Retention Ratio (%)0.0080.1094.0392.520.00
Interest Coverage Ratio (X)1.741.334.913.682.83
Interest Coverage Ratio (Post Tax) (X)0.750.273.622.471.81
Enterprise Value (Cr.)2176.743374.175329.561723.871447.40
EV / Net Operating Revenue (X)1.512.663.301.301.04
EV / EBITDA (X)13.9233.7412.856.016.21
MarketCap / Net Operating Revenue (X)0.811.893.100.900.77
Retention Ratios (%)0.00118.5391.0986.360.00
Price / BV (X)0.781.573.151.201.27
Price / Net Operating Revenue (X)0.811.893.100.900.77
EarningsYield-0.01-0.020.040.090.05

Solara Active Pharma Sciences Ltd Profitability Ratios (%)

Solara Active Pharma Sciences Ltd Liquidity Ratios

Solara Active Pharma Sciences Ltd Liquidity Ratios (%)

Solara Active Pharma Sciences Ltd Interest Coverage Ratios (X)

Solara Active Pharma Sciences Ltd Valuation Ratios

Fair Value / Intrinsic Value of Solara Active Pharma Sciences Ltd

Fair Value: ₹89.67

The stock is overvalued by 80.72% compared to the current price ₹465

*Investments are subject to market risks

Strength and Weakness of Solara Active Pharma Sciences Ltd

StrengthWeakness
  1. The company has higher reserves (1,237.29 cr) compared to borrowings (792.71 cr), indicating strong financial stability.
  2. The company has shown consistent growth in sales (75.29 cr) and profit (31.43 cr) over the years.
  1. The stock is trading at a high valuation with an average P/B ratio of 44.88 and average Dividend Yield of 9.30%.
  2. The stock has a low average ROCE of 6.50%, which may not be favorable.
  3. The stock has a high average Working Capital Days of 131.67, which may not be favorable.
  4. The stock has a high average Cash Conversion Cycle of 139.83, which may not be favorable.

Should I Buy Solara Active Pharma Sciences Ltd Share Now?

  • Considering various financial indicators, investors might exercise caution regarding investment in Solara Active Pharma Sciences Ltd:
    1. Net Profit Margin: -1.54%
      • 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: 2.51% (Industry Average ROCE: 17.66%)
      • 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. Interest Coverage Ratio (Post Tax): 0.75
      • 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.
    4. Quick Ratio: 0.57
      • 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.
    5. ✓ Stock P/E of N/A (Industry average Stock P/E: 88.9)
      • 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.
    6. ✓ Total Debt / Equity: 0.66
      • 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 suggests exercising caution. It's advisable to conduct further research or consult with financial experts before considering any investment.

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 Solara Active Pharma Sciences 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