Why is Solara Active falling/rising?

Jul 22 2025 11:03 PM IST
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As of 22-Jul, Solara Active Pharma Sciences Ltd's stock price is 668.00, down 1.18%, with a total decline of 3.59% over the last three days. Despite positive quarterly results and a 16.58% return over the past year, the stock's long-term fundamentals are weak, raising concerns about its ability to service debt.
As of 22-Jul, Solara Active Pharma Sciences Ltd is experiencing a decline in its stock price, currently at 668.00, which reflects a decrease of 8.0 or 1.18%. The stock has underperformed its sector today, with a consecutive fall over the last three days resulting in a total decline of 3.59%. Despite positive results in the last three quarters, including a significant growth in PAT and a high ROCE, the stock's performance over the past week shows a loss of 3.50%, while it has generated a return of 16.58% over the past year. However, the stock's long-term fundamentals are weak, evidenced by a -8.32% CAGR growth in operating profits over the last five years and a high Debt to EBITDA ratio, which raises concerns about its ability to service debt.

Broader market context indicates that the Sensex has shown a slight decline of 0.47% over the past week, suggesting a challenging environment for stocks in general. While Solara has outperformed the benchmark in the longer term, including a notable performance over the past three years, its recent underperformance in the short term contrasts with the broader market's relatively stable performance. The high percentage of pledged promoter shares may also contribute to additional downward pressure on the stock, particularly in a falling market, further complicating its outlook amidst a backdrop of declining investor participation and liquidity.
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