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Check Before You Invest : Solara Active Pharma Sciences Ltd

BSE: 541540 NSE: SOLARA ISIN: INE624Z01016
  |   Sector:  Healthcare   |   Industry:  Pharmaceuticals & Drugs

Snapshot

Q.1 Which industry/sub-sector does Solara Active Pharma Sciences Ltd belong to?
Solara Active Pharma Sciences Ltd belongs to the Healthcare sector, operating specifically within the Pharmaceuticals & Drugs segment.
Q.2 Is Solara Active Pharma Sciences Ltd a good quality company?
Solara Active Pharma Sciences Ltd is a weak quality company, based on a inconsistent 10 year financial track record.
Q.3 Is Solara Active Pharma Sciences Ltd undervalued or overvalued?
Solara Active Pharma Sciences Ltd appears Fair, as its key valuation ratios are in line with their past averages.
Q.4 Is Solara Active Pharma Sciences Ltd a good buy now?
Solara Active Pharma Sciences Ltd is a good buy now, based on strong price trend analysis suggesting prices may rise. However, you need to check its quality and valuation before making a decision

Performance Analysis

Q.1 Revenue growth of Solara Active Pharma Sciences Ltd?
Solara Active Pharma Sciences Ltd revenue growth is -0.4% for FY-2025 , which is above its 5 year CAGR of -0.6% , indicating faster growth.
Q.2 Gross Profit margin of Solara Active Pharma Sciences Ltd?
Solara Active Pharma Sciences Ltd Gross profit margin which is the profit after deduction of direct costs, is 7.8% for FY-2025 , which is above its 5 year median of 4.6% , indicating increasing margins.
Q.3 Operating Profit Margin of Solara Active Pharma Sciences Ltd?
Solara Active Pharma Sciences Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 16.07% for FY-2025 , which is above its 5 year median of 9.3% indicating increasing margins.
Q.4 Net Profit Margin of Solara Active Pharma Sciences Ltd?
Solara Active Pharma Sciences Ltd Net Profit Margin is 0.04% for FY-2025 , is above with its 5 year median of -1.54%, indicating increasing margins.
Current Level Historic Median
Gross Profit Margin 7.8 4.6
Operating Profit Margin 16.07 9.3
Net Profit Margin 0.04 -1.54
Q.5 Return on Asset of Solara Active Pharma Sciences Ltd?
Solara Active Pharma Sciences Ltd Return on Asset is 0.02%, which is above its 5 year historical median of -0.78%, indicating improved asset utilization efficiency.
Q.6 Return on Equity (ROE) of Solara Active Pharma Sciences Ltd?
Solara Active Pharma Sciences Ltd Return on equity is 0.05% for FY-2025 , which is above its historical median of -1.47%, indicating the business is making better use of its shareholders capital.
Q.7 Return on capital employed (ROCE) of Solara Active Pharma Sciences Ltd?
Solara Active Pharma Sciences Ltd Return on capital employed is 6.07% for FY-2025 , which is below its estimated weighted average cost of capital(WACC) 14%, indicating value preservation.
Q.8 Cash conversion cycle of Solara Active Pharma Sciences Ltd?
Solara Active Pharma Sciences Ltd Cash conversion cycle is 97 days, below its historical median of 181 days, indicating improved working capital management. However, you need to compare this with its peers in the industry.
Current Level Historic Median
Asset Turnover 0.56 0.51
ROE 0.05 -1.47
ROCE 6.07 1.79
Cash Conversion Cycle 97 days 181 days
Q.9 Debt to Equity ratio of Solara Active Pharma Sciences Ltd?
Solara Active Pharma Sciences Ltd Debt-to-Equity ratio is 0.71 , which is above with the industry average of 0.15 , indicating higher debt levels in the industry.
Q.10 Debt to cash flow from operations of Solara Active Pharma Sciences Ltd?
Solara Active Pharma Sciences Ltd Debt to cash flow from operations is 3.65 , which is at a unhealthy level.

Ownership & governance

Q.1 Promoter shareholding and pledge status of Solara Active Pharma Sciences Ltd?
Promoters hold 42.00% of the Solara Active Pharma Sciences Ltd, with 31.57% of their stake pledged, indicating high pledge risk.

Peer comparison (industry-wise, mcap)

Q.1 Revenue growth of Solara Active Pharma Sciences Ltd vs industry peers?
Solara Active Pharma Sciences Ltd revenue CAGR is -0.58% , compared to the industry median CAGR of 5.51% , indicating slower growth and losing its market share.
Profit Metrics
Current Level Industry Median
Revenue 1,283.8 138.8
Gross Profit 100.2 16.2
Operating Profit 206 16
Net Profit 1 5.3
Operating Efficiency
Current Level Industry Median
Asset Turnover 0.56 0.79
ROE 0.05 9.17
ROCE 6.07 11.78
Cash Conversion Cycle (days) 97.19 76

Valuation & price assessment

Q.1 Stock return of Solara Active Pharma Sciences Ltd over the last decade?
Over the last 5 year(s), the stock has delivered a CAGR of -18.56% based on the current price.
Q.2 What return has the stock given over the last decade?
9Y 5Y 3Y 1Y
Share Price - -18.6% 13.9% -3.6%
Q.3 Valuation ratios of Solara Active Pharma Sciences Ltd vs historical?
The current P/E is similar that its historical median.
Q.4 How do the current valuation ratios measure up against the historic numbers and the current industry numbers?
Valuation Ratios Current Historic Median Industry Median
Price to Earnings - - 40.28
Price to Book 1.9 1.96 2.77
Price to Sales 1.88 1.85 2.65
EV to EBITDA 16.36 15.15 15.67

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