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

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

SMS Pharma.

Shukra Pharma.

Amrutanjan Healt

IOL Chemicals

Windlas Biotech

Indoco Remedies

Novartis India

Morepen Labs.

Solara Active

Panacea Biotec

Beta Drugs Ltd

Why is Solara Active Pharma Sciences Ltd ?

Weak Long Term Fundamental Strength with a -13.96% 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 3.95 times
The company has been able to generate a Return on Equity (avg) of 2.54% signifying low profitability per unit of shareholders funds
PAT(Q) At Rs -10.10 cr has Fallen at -264.8% (vs previous 4Q average)
DPS(Y) Lowest at Rs 0.00
DEBT-EQUITY RATIO(HY) Highest at 4.40 times

35.32% of Promoter Shares are Pledged

In falling markets, high promoter pledged shares puts additional downward pressure on the stock prices

Below par performance in long term as well as near term

Along with generating -32.23% returns in the last 1 year, the stock has also underperformed BSE500 in the last 3 years, 1 year and 3 months

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

-31.96%

-0.64

50.21%

Sensex

4.67%

0.45

11.83%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

-2.75%

EBIT Growth (5y)

-13.96%

EBIT to Interest (avg)

0.29

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

35.32%

Institutional Holding

16.27%

ROCE (avg)

1.23%

ROE (avg)

2.54%

Valuation

Valuation Scorecard

Valuation grade scale :

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

Valuation Key Factors

Factor

Value

P/E Ratio

311

Industry P/E

Price to Book Value

1.59

EV to EBIT

26.90

EV to EBITDA

13.52

EV to Capital Employed

1.39

EV to Sales

2.18

PEG Ratio

3.05

Dividend Yield

ROCE (Latest)

5.16%

ROE (Latest)

0.51%

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Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Moving Averages

Mildly Bullish (Daily)

KST

Bearish

Mildly Bearish

Dow Theory

Mildly Bearish

No Trend

OBV

Bullish

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

2What is working for the Company

OPERATING CF(Y)

Highest at Rs 212.80 Cr

-15What is not working for the Company

PAT(Q)

At Rs -10.10 cr has Fallen at -264.8% (vs previous 4Q average

DPS(Y)

Lowest at Rs 0.00

DEBT-EQUITY RATIO(HY)

Highest at 4.40 times

DEBTORS TURNOVER RATIO(HY)

Lowest at 0.35 times

PBDIT(Q)

Lowest at Rs 34.73 cr.

OPERATING PROFIT TO NET SALES (Q)

Lowest at 11.08%

PBT LESS OI(Q)

Lowest at Rs -10.59 cr.

EPS(Q)

Lowest at Rs -2.27

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Here's what is working for Solara Active

Operating Cash Flow - Annually

Highest at Rs 212.80 Cr

in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (Rs Cr)

Here's what is not working for Solara Active

Profit Before Tax less Other Income (PBT) - Quarterly

At Rs -10.59 cr has Fallen at -368.4% (vs previous 4Q average)

over average PBT of the previous four quarters of Rs 3.95 Cr

MOJO Watch

Near term PBT trend is very negative

PBT less Other Income (Rs Cr)

Profit After Tax (PAT) - Quarterly

At Rs -10.10 cr has Fallen at -264.8% (vs previous 4Q average)

over average PAT of the previous four quarters of Rs 6.13 Cr

MOJO Watch

Near term PAT trend is very negative

PAT (Rs Cr)

Operating Profit (PBDIT) - Quarterly

Lowest at Rs 34.73 cr.

in the last five quarters

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (Rs Cr)

Operating Profit Margin - Quarterly

Lowest at 11.08%

in the last five quarters

MOJO Watch

Company's efficiency has deteriorated

Operating Profit to Sales

Profit Before Tax less Other Income (PBT) - Quarterly

Lowest at Rs -10.59 cr.

in the last five quarters

MOJO Watch

Near term PBT trend is negative

PBT less Other Income (Rs Cr)

Earnings per Share (EPS) - Quarterly

Lowest at Rs -2.27

in the last five quarters

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (Rs)

Debt-Equity Ratio - Half Yearly

Highest at 4.40 times

in the last five half yearly periods

MOJO Watch

The company is borrowing more to fund its operations; it's liquidity situation may be stressed

Debt-Equity Ratio

Debtors Turnover Ratio- Half Yearly

Lowest at 0.35 times

in the last five half yearly periods

MOJO Watch

Company's pace of settling its Debtors has slowed

Debtors Turnover Ratio

Dividend per Share (DPS) - Annually

Lowest at Rs 0.00

in the last five years

MOJO Watch

Company is distributing lower dividend than previous years

DPS (Rs)