Solara Active Pharma Sciences Intrinsic Value

SOLARA • Healthcare
Current Stock Price
₹560.40
Primary Intrinsic Value
₹548.50
Market Cap
₹2242 Cr
+10.8% Upside
Median Value
₹621.20
Value Range
₹322 - ₹628
Assessment
Trading Below Median Value
Safety Margin
9.8%

SOLARA Valuation Methods Summary

Method Type Intrinsic Value Range Upside/Downside Details
Book Value Method asset ₹548.50 ₹493.65 - ₹603.35 -2.1% Book Value/Share: ₹274.25, P/B: 2.0x
Revenue Multiple Method revenue ₹628.00 ₹565.20 - ₹690.80 +12.1% Revenue/Share: ₹314.00, P/S: 2.0x
EBITDA Multiple Method earnings ₹321.54 ₹289.39 - ₹353.69 -42.6% EBITDA: ₹140.00Cr, EV/EBITDA: 10x
Simple DCF (5Y) dcf ₹621.20 ₹496.96 - ₹745.44 +10.8% CF Growth: 10.9%, Discount: 15%
Method Types: Earnings Asset DCF Growth Dividend Conservative

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Valuation Comparison Chart

SOLARA Intrinsic Value Analysis

What is the intrinsic value of SOLARA?

Based on our comprehensive analysis using 4 different valuation methods, the estimated intrinsic value of Solara Active Pharma Sciences (SOLARA) is ₹621.20 (median value). With the current market price of ₹560.40, this represents a +10.8% variance from our estimated fair value.

The valuation range spans from ₹321.54 to ₹628.00, indicating ₹321.54 - ₹628.00.

Is SOLARA undervalued or overvalued?

Based on our multi-method analysis, Solara Active Pharma Sciences (SOLARA) appears to be trading below median value by approximately 10.8%.

Financial Health Analysis

Financial Metric Current Value Industry Benchmark Assessment Impact on Valuation
Current Ratio 3.82 Industry Standard: 2.0+ Above 2.0 Measures short-term liquidity capacity
Debt to Equity Ratio 2.03 Industry Standard: <0.5 Above 1.0 Indicates financial leverage level
Return on Equity -3.6% Industry Standard: 15%+ Below 10% Measures shareholder return efficiency
Operating Margin 11.0% Industry Standard: 20%+ Above 10% Indicates operational efficiency level
Asset Turnover Ratio 0.56x Industry Standard: 1.0x+ Above 0.5x Measures asset utilization efficiency

Cash Flow Quality Analysis

Period Operating Cash Flow Free Cash Flow Cash Flow Quality Sustainability Score
March 2025 ₹213 Cr ₹195 Cr Positive Free Cash Flow 8/10
March 2024 ₹109 Cr ₹107 Cr Positive Free Cash Flow 8/10
March 2023 ₹156 Cr ₹116 Cr Positive Free Cash Flow 8/10
March 2022 ₹-242 Cr ₹-364 Cr Negative Cash Flow 3/10
March 2021 ₹156 Cr ₹103 Cr Positive Free Cash Flow 8/10