Solara Active Pharma Sciences Intrinsic Value

SOLARA • Healthcare
Current Stock Price
₹476.10
Primary Intrinsic Value
₹548.50
Market Cap
₹1904 Cr
+30.5% Upside
Median Value
₹621.20
Value Range
₹350 - ₹628
Assessment
Trading Below Calculated Value
Safety Margin
23.4%

SOLARA Valuation Methods Summary

Method Type Intrinsic Value Range Upside/Downside Details
Book Value Method asset ₹548.50 ₹493.65 - ₹603.35 +15.2% Book Value/Share: ₹274.25, P/B: 2.0x
Revenue Multiple Method revenue ₹628.00 ₹565.20 - ₹690.80 +31.9% Revenue/Share: ₹314.00, P/S: 2.0x
EBITDA Multiple Method earnings ₹350.00 ₹315.00 - ₹385.00 -26.5% EBITDA: ₹140.00Cr, EV/EBITDA: 10x
Simple DCF (5Y) dcf ₹621.20 ₹496.96 - ₹745.44 +30.5% CF Growth: 10.9%, Discount: 15%
Method Types: Earnings Asset DCF Growth Dividend Conservative

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 ₹476.10, this represents a +30.5% variance from our estimated fair value.

The valuation range spans from ₹350.00 to ₹628.00, indicating ₹350.00 - ₹628.00.

Is SOLARA undervalued or overvalued?

Based on our multi-method analysis, Solara Active Pharma Sciences (SOLARA) appears to be trading below calculated value by approximately 30.5%.

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
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