Buy Solara Active Pharma Sciences, target price Rs 488: ICICI Securities

ICICI Securities has buy call on Solara Active Pharma Sciences with a target price of Rs 488. The current market price of Solara Active Pharma Sciences is Rs 379.9. Time period given by analyst is one year when Solara Active Pharma Sciences Ltd. price can reach defined target.

Solara Active Pharma Sciences Ltd., incorporated in the year 2017, is a Small Cap company (having a market cap of Rs 1364.98 Crore) operating in Pharmaceuticals sector.

Solara Active Pharma Sciences Ltd. key Products/Revenue Segments include Active Pharma Ingredients, Other Operating Revenue and Sale of services for the year ending 31-Mar-2022.


Financials
For the quarter ended 30-06-2022, the company reported a Consolidated Total Income of Rs 337.05 Crore, down -8.13 % from last quarter Total Income of Rs 366.89 Crore and down -18.09 % from last year same quarter Total Income of Rs 411.48 Crore. Company reported net profit after tax of Rs -16.45 Crore in latest quarter.


Investment Rationale
While the brokerage believes near-term performance would remain under pressure due to business volatility, cost inflation and decline in demand, sharp correction in stock (~60% in last 6 months) have already priced in most concerns and provide comfort on valuations. Upgrade to BUY from Add with a revised target price of Rs488/share (earlier: Rs721/share).

Promoter/FII Holdings
Promoters held 40.4 per cent stake in the company as of 30-Jun-2022, while FIIs owned 17.93 per cent, DIIs 3.09 per cent.