Solara Active Pharma Sciences Ltd (SOLARA) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

Fredun Pharma

NGL Fine Chem

Kwality Pharma

Beta Drugs Ltd

Solara Active

Hikal

Hester Bios

Indoco Remedies

Panacea Biotec

Dishman Carbogen

Sai Parenteral's

Why is Solara Active Pharma Sciences Ltd ?

Weak Long Term Fundamental Strength with a -20.70% CAGR growth in Operating Profits over the last 5 years

Low ability to service debt as the company has a high Debt to EBITDA ratio of 3.68 times
The company has been able to generate a Return on Equity (avg) of 0.01% signifying low profitability per unit of shareholders funds

37.11% of Promoter Shares are Pledged

In falling markets, high promoter pledged shares puts additional downward pressure on the stock prices
The proportion of pledged holdings has increased by 0.54% over the last quarter

Underperformed the market in the last 1 year

Even though the market (BSE500) has generated returns of 4.11% in the last 1 year, the stock has hugely underperformed and has generate negative returns of -16.06% returns

Real-Time Research Report

Verdict Report

How much should you sell?

All quantity irrespective of whether you are making profits or losses

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Pharmaceuticals & Biotechnology)

When to re-enter? - We will constantly monitor the company and review our call based on new data

Is Solara Active for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

Solara Active

-16.06%

-0.39

41.16%

Sensex

-2.63%

-0.19

13.57%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

-3.08%

EBIT Growth (5y)

-20.70%

EBIT to Interest (avg)

-0.11

Debt to EBITDA (avg)

Negative Net Debt

Net Debt to Equity (avg)

0.51

Sales to Capital Employed (avg)

0.62

Tax Ratio

Dividend Payout Ratio

Pledged Shares

37.11%

Institutional Holding

15.26%

ROCE (avg)

0.31%

ROE (avg)

0.01%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

562

Industry P/E

Price to Book Value

1.92

EV to EBIT

34.13

EV to EBITDA

15.83

EV to Capital Employed

1.61

EV to Sales

2.12

PEG Ratio

Dividend Yield

ROCE (Latest)

4.62%

ROE (Latest)

-0.12%

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Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bearish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Mildly Bullish (Daily)

KST

Mildly Bearish

Bearish

Dow Theory

Mildly Bearish

No Trend

OBV

Mildly Bearish

No Trend

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

23What is working for the Company

PBT LESS OI(Q)

At Rs 13.62 cr has Grown at 809.4% (vs previous 4Q average

NET SALES(Latest six months)

At Rs 768.89 cr has Grown at 29.84%

OPERATING PROFIT TO INTEREST(Q)

Highest at 2.86 times

PBDIT(Q)

Highest at Rs 61.97 cr.

PAT(Q)

Highest at Rs 16.31 cr.

EPS(Q)

Highest at Rs 3.39

-2What is not working for the Company

DEBTORS TURNOVER RATIO(HY)

Lowest at 3.12 times

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Here's what is working for Solara Active

Profit Before Tax less Other Income (PBT) - Quarterly

At Rs 13.62 cr has Grown at 809.4% (vs previous 4Q average)

over average PBT of the previous four quarters of Rs -1.92 Cr

MOJO Watch

Near term PBT trend is very positive

PBT less Other Income (Rs Cr)

Profit After Tax (PAT) - Quarterly

At Rs 16.31 cr has Grown at 4392.1% (vs previous 4Q average)

over average PAT of the previous four quarters of Rs -0.38 Cr

MOJO Watch

Near term PAT trend is very positive

PAT (Rs Cr)

Operating Profit to Interest - Quarterly

Highest at 2.86 times

in the last five quarters

MOJO Watch

The company's ability to manage interest payments is improving

Operating Profit to Interest

Net Sales - Latest six months

At Rs 768.89 cr has Grown at 29.84%

Year on Year (YoY)

MOJO Watch

Near term sales trend is positive

Net Sales (Rs Cr)

Operating Profit (PBDIT) - Quarterly

Highest at Rs 61.97 cr.

in the last five quarters

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (Rs Cr)

Profit Before Tax less Other Income (PBT) - Quarterly

Highest at Rs 13.62 cr.

in the last five quarters

MOJO Watch

Near term PBT trend is positive

PBT less Other Income (Rs Cr)

Profit After Tax (PAT) - Quarterly

Highest at Rs 16.31 cr.

in the last five quarters

MOJO Watch

Near term PAT trend is positive

PAT (Rs Cr)

Earnings per Share (EPS) - Quarterly

Highest at Rs 3.39

in the last five quarters

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (Rs)

Here's what is not working for Solara Active

Debtors Turnover Ratio- Half Yearly

Lowest at 3.12 times

in the last five half yearly periods

MOJO Watch

Company's pace of settling its Debtors has slowed

Debtors Turnover Ratio