BQ Prime's special research section collates quality and in-depth equity and economy research reports from across India's top brokerages, asset managers and research agencies. These reports offer BQ Prime's subscribers an opportunity to expand their understanding of companies, sectors and the economy.
Motilal Oswal Report
Solara Active Pharma Sciences Ltd. delivered a better-than-expected operational performance in Q2 FY24. While Solara has been able to revive sales growth and subsequent operating margins, it is yet to be back in black.
We reduce our Ebitda estimates by 12%/9% for FY24/FY25, factoring in-
Also Read | Layoffs Are Rising In Tech, But These Skills Are Helping People Unlock Better Pay
gradual improvements in profitability, given stable product mix benefits; and
an increase in research and development spending to expand product offerings.
Accordingly, we expect Solara to report a loss of Rs 321 million in FY24. Better capacity utilisation and operating leverage at Vizag manufacturing site would enable Solara to deliver profit after tax of Rs 173 million in FY25.
Solara continues to make efforts to increase off-take of base products, expand to new markets, and grow contract research and manufacturing services business through low-molecular weight peptides and material sciences.
We value Solara at 11 times 12 months forward enterprise value/Ebitda to arrive at a target price of Rs 400. Maintain 'Buy'.
Click on the attachment to read the full report:
DISCLAIMER
This report is authored by an external party. BQ Prime does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of BQ Prime.
Users have no license to copy, modify, or distribute the content without permission of the Original Owner.
Essential Business Intelligence, Sharp Market Insights, Practical Personal Finance Advice, Daily Fuel, Gold and Silver Prices and Latest Stories — On NDTV Profit.
