Solara Active Pharma Sciences Ltd. (SOLARA) AI Stock Analysis

• Market Cap: ₹28.86B
• Dividend Yield: N/A
• Average Volume (3M): 37.94K
• Price to Earnings (P/E): 113.3
• Beta (1Y): 1.29
• Revenue Growth: -7.29%
• EPS Growth: N/A
• Country: IN
• Employees: 2,156
• Sector: Healthcare
• Sector Strength: 45
• Industry: Drug Manufacturers - Specialty & Generic
• EPS (TTM): 2.37
• Shares Outstanding: 48,153,023
• 10 Day Avg. Volume: 26,889
• 30 Day Avg. Volume: 37,944
• PEG Ratio: -36.57
• Price to Book (P/B): 1.81
• Price to Sales (P/S): 1.54
• P/FCF Ratio: 11.43
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 53 Neutral
• Price Target: ₹626.00 ▲(5.36% Upside)

Solara Active Pharma Sciences Ltd. receives a moderate score due to its mixed financial performance, with improving cash flows but low profitability. The technical analysis indicates a bearish trend, and the high P/E ratio suggests overvaluation. These factors combined result in a cautious outlook for the stock.

Solara Active Pharma Sciences Ltd. Business Overview & Revenue Model

Company Description

Solara Active Pharma Sciences Ltd. (SOLARA) is a leading pharmaceutical company based in India, specializing in the development, manufacturing, and marketing of a wide range of Active Pharmaceutical Ingredients (APIs) and intermediates. The company operates primarily in the pharmaceutical sector, focusing on therapeutic areas such as anti-infectives, cardiovascular, and central nervous system disorders. SOLARA is known for its commitment to quality and sustainability, providing high-quality products that meet international standards.

How the Company Makes Money

Solara generates revenue through multiple streams including the sale of Active Pharmaceutical Ingredients (APIs) to pharmaceutical companies, contract manufacturing services, and exports to various international markets. The company's revenue model is driven by long-term contracts with clients, ensuring a steady flow of income. Additionally, SOLARA engages in partnerships and collaborations with other pharmaceutical firms, which enhance its product offerings and market reach. The company's focus on research and development helps it to innovate and expand its product portfolio, contributing to increased sales and market share.

Solara Active Pharma Sciences Ltd. Financial Statement Overview

Summary

Solara Active Pharma Sciences Ltd. shows signs of recovery with improving operational margins and cash flow performance. However, profitability remains a concern with significant fluctuations in net income and low return on equity. The company is leveraging equity efficiently, but sustained efforts are needed to stabilize revenue growth and enhance net profit margins.

Income Statement

Solara Active Pharma Sciences Ltd. has demonstrated a volatile income trajectory reflected by fluctuating revenue and net income over the analyzed periods. The gross profit margin for the latest year is 51.2%, showing strong profitability in core operations, but the net profit margin is a mere 0.04%, indicating that high operational costs or other expenses significantly impact the bottom line. Revenue growth is relatively flat over the past year, with a minor increase of 0.76%. EBIT margin improved to 34.7% from negative figures in previous years, signifying operational recovery. Overall, the income statement reflects a mixed performance with potential stabilization in profitability.

Balance Sheet

The balance sheet of Solara Active Pharma Sciences Ltd. reveals a moderate financial position with a debt-to-equity ratio of 0.73, indicating a balanced approach to leveraging. The return on equity (ROE) is extremely low at 0.05%, suggesting inefficient utilization of equity to generate profits. The equity ratio stands at 49%, denoting a solid foundation of equity in the asset base. The company's reduction in debt and increase in equity over recent years are positive signs, but profitability remains a concern.

Cash Flow

The cash flow statement shows a strong improvement in free cash flow, which grew by 155% from the previous year, indicating enhanced cash generation capabilities. The operating cash flow to net income ratio is high, suggesting robust cash generation relative to net income, while the free cash flow to net income ratio also reflects healthy cash flows. These factors contribute to a positive cash flow outlook, signaling effective cash management despite past challenges.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	12.39B	12.84B	12.89B	14.27B	12.68B	15.97B
Gross Profit	5.90B	6.57B	-1.30B	1.25B	5.60B	3.81B
EBITDA	2.30B	2.06B	-2.82B	1.52B	793.30M	4.14B
Net Income	245.20M	5.40M	-5.67B	-221.70M	-581.50M	2.21B
Balance Sheet
Total Assets	0.00	22.32B	23.51B	28.99B	29.53B	26.14B
Cash, Cash Equivalents and Short-Term Investments	41.10M	41.10M	84.40M	87.30M	463.80M	1.98B
Total Debt	0.00	7.96B	10.12B	10.13B	10.37B	6.21B
Total Liabilities	-10.97B	11.35B	14.14B	13.97B	14.18B	10.21B
Stockholders Equity	10.97B	10.94B	9.34B	15.00B	15.25B	15.89B
Cash Flow
Free Cash Flow	0.00	1.73B	678.10M	449.40M	-4.51B	-190.20M
Operating Cash Flow	0.00	2.13B	1.09B	1.56B	-2.42B	1.55B
Investing Cash Flow	0.00	-368.30M	-35.10M	-811.40M	-2.43B	-1.06B
Financing Cash Flow	0.00	-1.80B	-1.06B	-1.13B	3.34B	924.90M

Solara Active Pharma Sciences Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 594.15
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:SOLARA, the sentiment is Negative. The current price of 594.15 is below the 20-day moving average (MA) of 602.95, below the 50-day MA of 629.45, and above the 200-day MA of 572.10, indicating a neutral trend. The MACD of -13.02 indicates Negative momentum. The RSI at 40.57 is Neutral, neither overbought nor oversold. The STOCH value of 56.92 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:SOLARA.

Solara Active Pharma Sciences Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SMSPHARMA	65 Neutral	₹25.95B	34.75	―	0.14%	10.29%	25.18%
KRSNAA	63 Neutral	₹25.65B	31.39	―	0.34%	13.78%	32.21%
MOREPENLAB	62 Neutral	₹26.94B	28.83	―	0.41%	2.12%	-25.99%
SOLARA	53 Neutral	₹28.86B	113.29	―	―	-7.29%	―
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
PANACEABIO	45 Neutral	₹26.56B	231.39	―	―	11.80%	―

Solara Active Pharma Sciences Ltd. Corporate Events

Solara Active Pharma Issues First Reminder for Call Money Payment

Solara Active Pharma Sciences Ltd. has issued a First Reminder Notice for the payment of First Call Money to shareholders who have not yet paid for their partly paid-up equity shares. This move is part of the company’s rights issue, aiming to ensure compliance and facilitate trading for those who complete payment by July 21, 2025. The notice has been dispatched electronically and in physical form, with all relevant instructions available on the company’s website.