NSEI:SOLARA

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Solara Active Pharma Sciences

Executive Summary

Solara Active Pharma Sciences Limited manufactures and sells active pharmaceutical ingredients (API). More Details


Snowflake Analysis

Proven track record with mediocre balance sheet.

Share Price & News

How has Solara Active Pharma Sciences's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: SOLARA's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

1.4%

SOLARA

-3.2%

IN Pharmaceuticals

-0.6%

IN Market


1 Year Return

187.0%

SOLARA

52.6%

IN Pharmaceuticals

2.2%

IN Market

Return vs Industry: SOLARA exceeded the Indian Pharmaceuticals industry which returned 52.6% over the past year.

Return vs Market: SOLARA exceeded the Indian Market which returned 2.2% over the past year.


Shareholder returns

SOLARAIndustryMarket
7 Day1.4%-3.2%-0.6%
30 Day12.6%-4.3%0.2%
90 Day82.1%13.4%6.7%
1 Year187.8%187.0%54.5%52.6%3.9%2.2%
3 Yearn/a26.9%23.4%2.6%-2.4%
5 Yearn/a-0.6%-4.1%41.3%30.8%

Price Volatility Vs. Market

How volatile is Solara Active Pharma Sciences's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Solara Active Pharma Sciences undervalued compared to its fair value and its price relative to the market?

23.82x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: SOLARA (₹1187.7) is trading above our estimate of fair value (₹437.2)

Significantly Below Fair Value: SOLARA is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: SOLARA is poor value based on its PE Ratio (23.8x) compared to the IN Pharmaceuticals industry average (23x).

PE vs Market: SOLARA is poor value based on its PE Ratio (23.8x) compared to the Indian market (16.3x).


Price to Earnings Growth Ratio

PEG Ratio: SOLARA is poor value based on its PEG Ratio (4x)


Price to Book Ratio

PB vs Industry: SOLARA is overvalued based on its PB Ratio (2.9x) compared to the IN Pharmaceuticals industry average (2.2x).


Next Steps

Future Growth

How is Solara Active Pharma Sciences forecast to perform in the next 1 to 3 years based on estimates from 3 analysts?

5.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: SOLARA's forecast earnings growth (5.9% per year) is below the savings rate (7.2%).

Earnings vs Market: SOLARA's earnings (5.9% per year) are forecast to grow slower than the Indian market (25.5% per year).

High Growth Earnings: SOLARA's earnings are forecast to grow, but not significantly.

Revenue vs Market: SOLARA's revenue (18.5% per year) is forecast to grow faster than the Indian market (11.6% per year).

High Growth Revenue: SOLARA's revenue (18.5% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: SOLARA's Return on Equity is forecast to be low in 3 years time (11.9%).


Next Steps

Past Performance

How has Solara Active Pharma Sciences performed over the past 5 years?

58.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: SOLARA has high quality earnings.

Growing Profit Margin: SOLARA's current net profit margins (9.7%) are higher than last year (6%).


Past Earnings Growth Analysis

Earnings Trend: SOLARA's earnings have grown significantly by 58% per year over the past 5 years.

Accelerating Growth: SOLARA's earnings growth over the past year (53.9%) is below its 5-year average (58% per year).

Earnings vs Industry: SOLARA earnings growth over the past year (53.9%) exceeded the Pharmaceuticals industry 14.7%.


Return on Equity

High ROE: SOLARA's Return on Equity (12%) is considered low.


Next Steps

Financial Health

How is Solara Active Pharma Sciences's financial position?


Financial Position Analysis

Short Term Liabilities: SOLARA's short term assets (₹6.7B) do not cover its short term liabilities (₹7.3B).

Long Term Liabilities: SOLARA's short term assets (₹6.7B) exceed its long term liabilities (₹3.3B).


Debt to Equity History and Analysis

Debt Level: SOLARA's debt to equity ratio (64.8%) is considered high.

Reducing Debt: Insufficient data to determine if SOLARA's debt to equity ratio has reduced over the past 5 years.

Debt Coverage: SOLARA's debt is well covered by operating cash flow (34.6%).

Interest Coverage: SOLARA's interest payments on its debt are well covered by EBIT (3x coverage).


Balance Sheet


Next Steps

Dividend

What is Solara Active Pharma Sciences's current dividend yield, its reliability and sustainability?

0.17%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: SOLARA's dividend (0.17%) isn’t notable compared to the bottom 25% of dividend payers in the Indian market (0.57%).

High Dividend: SOLARA's dividend (0.17%) is low compared to the top 25% of dividend payers in the Indian market (2.29%).


Stability and Growth of Payments

Stable Dividend: SOLARA is not paying a notable dividend for the Indian market, therefore no need to check if payments are stable.

Growing Dividend: SOLARA is not paying a notable dividend for the Indian market, therefore no need to check if payments are increasing.


Current Payout to Shareholders

Dividend Coverage: SOLARA is not paying a notable dividend for the Indian market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of SOLARA's dividend in 3 years as they are not forecast to pay a notable one for the Indian market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

0.08yrs

Average management tenure


CEO

Bharath Sesha

0.67

Tenure

₹27,716,800

Compensation

Mr. Bharath R. Sesha serves as Chief Executive officer at Solara Active Pharma Sciences Limited since February 06, 2020 and serves as its Managing Director and Director since August 03, 2020. He joins Sola ...


CEO Compensation Analysis

Compensation vs Market: Bharath's total compensation ($USD377.86K) is about average for companies of similar size in the Indian market ($USD355.74K).

Compensation vs Earnings: Insufficient data to compare Bharath's compensation with company performance.


Leadership Team

NamePositionTenureCompensationOwnership
Bharath Sesha
MD, CEO & Director0.67yr₹27.72mno data
B. Reddy
Chief Operating Officer0.083yr₹17.30m0.044%
₹ 18.8m
S. Murali Krishna
Company Secretary1.5yrs₹4.20m0.00038%
₹ 161.7k
Subramaniam Hariharan
Executive Director of Finance & Executive Director3.67yrs₹16.70m0.033%
₹ 13.8m
Subhash Anand
Chief Financial Officer0.083yrno datano data
Rajesh Salwan
Chief Operating Officer0.083yrno datano data
Roy Joseph
Chief Human Resource Officer0.42yrno datano data
V. Moorthy
Chief Quality Officerno datano data0.024%
₹ 10.1m
Swaminathan Srinivasan
Senior Vice President of Research & Developmentno datano data0.022%
₹ 9.5m

0.08yrs

Average Tenure

53yo

Average Age

Experienced Management: SOLARA's management team is not considered experienced ( 0.1 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Bharath Sesha
MD, CEO & Director0.67yr₹27.72mno data
Subramaniam Hariharan
Executive Director of Finance & Executive Director3.67yrs₹16.70m0.033%
₹ 13.8m
Deepak Vaidya
Non-Executive Chairman of the Boardno data₹800.00k0.084%
₹ 35.6m
Nirmal Bhogilal
Independent Director2.5yrs₹800.00k0.35%
₹ 147.3m
Ankur Thadani
Non-Executive Director1.42yrsno datano data
Kausalya Santhanam
Independent Director2.5yrs₹800.00kno data
R. Ramakrishnan
Independent Director2.5yrs₹800.00k0.056%
₹ 23.8m
Ronald de Vries
Independent Director2yrs₹800.00kno data

2.5yrs

Average Tenure

58yo

Average Age

Experienced Board: SOLARA's board of directors are not considered experienced ( 2.5 years average tenure), which suggests a new board.


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: SOLARA insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 39%.


Top Shareholders

Company Information

Solara Active Pharma Sciences Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Solara Active Pharma Sciences Limited
  • Ticker: SOLARA
  • Exchange: NSEI
  • Founded: 2017
  • Industry: Pharmaceuticals
  • Sector: Pharmaceuticals & Biotech
  • Market Cap: ₹42.547b
  • Shares outstanding: 35.82m
  • Website: https://www.solara.co.in

Location

  • Solara Active Pharma Sciences Limited
  • Batra Centre
  • 3rd & 4th Floor
  • Chennai
  • Tamil Nadu
  • 600 032
  • India

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
SOLARANSEI (National Stock Exchange of India)YesEquity SharesININRJun 2018
541540BSE (Mumbai Stock Exchange)YesEquity SharesININRJun 2018

Biography

Solara Active Pharma Sciences Limited manufactures and sells active pharmaceutical ingredients (API). The company offers APIs for anesthetics, anthelmintic, anti-arrhythmic agent, anti-asthmatic, anti-hype ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/10/20 12:34
End of Day Share Price2020/10/19 00:00
Earnings2020/06/30
Annual Earnings2020/03/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.