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

• Market Cap: ₹29.08B
• Dividend Yield: N/A
• Average Volume (3M): 15.19K
• Price to Earnings (P/E): 126.4
• Beta (1Y): 1.24
• Revenue Growth: -7.29%
• EPS Growth: N/A
• Country: IN
• Employees: 2,156
• Sector: Healthcare
• Sector Strength: 41
• Industry: Drug Manufacturers - Specialty & Generic
• EPS (TTM): 2.37
• Shares Outstanding: 48,153,023
• 10 Day Avg. Volume: 10,049
• 30 Day Avg. Volume: 15,194
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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: ₹615.00
• Price Target Upside: 1.43% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 53 Neutral
• Price Target: ₹615.00 ▲(1.43% Upside)

The overall stock score of 53 reflects a mixed financial performance with improving cash flows but concerns over profitability and valuation. Technical indicators suggest a lack of strong momentum, and the high P/E ratio indicates potential overvaluation. The absence of earnings call data and corporate events limits further insights.

Solara Active Pharma Sciences Ltd. Business Overview & Revenue Model

Company Description

Solara Active Pharma Sciences Ltd. (SOLARA) is a leading Indian pharmaceutical company specializing in the development and manufacture of active pharmaceutical ingredients (APIs). The company focuses on niche therapeutic segments, providing high-quality APIs that serve as the building blocks for various pharmaceutical products worldwide. Solara is recognized for its robust research and development capabilities and has a strong presence in both domestic and international markets, catering to diverse therapeutic areas.

How the Company Makes Money

Solara Active Pharma Sciences Ltd. generates revenue primarily through the manufacture and sale of active pharmaceutical ingredients (APIs). The company's revenue streams include direct sales of APIs to generic and branded pharmaceutical companies, as well as strategic partnerships and supply agreements with global pharmaceutical firms. Solara's focus on niche and complex APIs allows it to command premium pricing, contributing significantly to its earnings. Additionally, the company's investment in R&D and its expertise in process chemistry enable it to develop cost-efficient production methods, enhancing its profitability. Solara also benefits from long-term contracts and relationships with key clients, ensuring a stable revenue base.

Solara Active Pharma Sciences Ltd. Financial Statement Overview

Summary

Solara Active Pharma Sciences Ltd. shows signs of recovery, with improving operational margins and strong cash flow performance. However, profitability remains a concern due to fluctuations in net income and low return on equity. The company is leveraging equity efficiently, but needs to stabilize revenue growth and enhance net profit margins for long-term financial health.

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	12.84B	12.84B	12.89B	14.27B	12.68B	15.97B
Gross Profit	4.99B	6.57B	4.26B	6.55B	1.00B	8.06B
EBITDA	2.15B	2.06B	-2.82B	1.52B	793.30M	4.14B
Net Income	5.40M	5.40M	-5.67B	-221.70M	-581.50M	2.21B
Balance Sheet
Total Assets	22.32B	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	7.96B	7.96B	10.12B	10.13B	10.37B	6.21B
Total Liabilities	11.35B	11.35B	14.14B	13.97B	14.25B	10.21B
Stockholders Equity	10.94B	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: Neutral
• Last Price: 606.35
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Positive
• 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 Neutral. The current price of 606.35 is below the 20-day moving average (MA) of 640.99, above the 50-day MA of 600.53, and above the 200-day MA of 604.06, indicating a neutral trend. The MACD of -7.42 indicates Positive momentum. The RSI at 45.30 is Neutral, neither overbought nor oversold. The STOCH value of 23.92 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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
MOREPENLAB	65 Neutral	₹25.58B	27.74		―	2.12%	-25.99%
KRSNAA	65 Neutral	₹26.05B	32.35		0.31%	13.78%	32.19%
SMSPHARMA	61 Neutral	₹20.42B	26.99		0.18%	10.29%	26.79%
SOLARA	53 Neutral	₹29.08B	126.42		―	-7.29%	―
Sector *	51 Neutral	$7.43B	-0.36	-45.45%	2.27%	22.98%	-2.34%
PANACEABIO	47 Neutral	₹26.38B	―		―	-0.01%	-616.18%

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.