Solara Active (SOLARA)
TurnaroundFairStock Score: 10/100 — RISKY
Score breakdown: P/E: 0/3 · ROCE: 0/2 · Growth: 0/2 · Dividend: 0/1
Key Financials
| Current Price | ₹512.3 |
| Market Cap | ₹2,471.76 Cr |
| P/E Ratio | 0 |
| ROCE | 6.01% |
| ROE | -2% |
| Dividend Yield | 0% |
| Profit Growth | 43.1% |
| Debt/Equity | 0.55 |
| Sales Growth | 19.6% |
| Promoter Holding | 42% |
| 52-Week Range | ₹422 — ₹759.95 |
| Sector | Pharmaceuticals & Biotechnology |
| Book Value | ₹287.12 |
Strengths
- Sales growth of 16.21% shows some business momentum.
- Debt/Equity of 0.51 is moderate and not dangerously leveraged.
- ROCE of 6.01% is positive despite negative ROE, indicating some underlying operating return.
- Promoter holding of 42% gives some alignment with minority shareholders.
- Book value of ₹227.39 per share provides a tangible asset base.
Concerns
- P/E is effectively zero because the company is loss-making; no earnings to justify valuation.
- Profit growth of -232.01% and latest quarterly net loss of ₹17 Cr show severe earnings deterioration.
- ROE of -2.00% and Piotroski F-Score of 4/9 indicate poor financial health.
- P/B of 2.19 is expensive relative to a negative return on equity and no dividend.
AI Analysis
I look for businesses I can understand, with durable moats and earnings to value. Solara Active fails my first test: there are no earnings to value. At ₹498.65, the market cap is ₹2,056 Cr, but book value is only ₹227.39 per share, so I am paying 2.19 times book for a business earning a negative return on equity of -2%. Graham would demand a margin of safety; here the P/B does not compensate for a loss-making year. The latest quarter tells the same story: ₹349 Cr in sales but a ₹17 Cr net loss, roughly a -5% margin. Sales grew 16.21%, yet profit growth collapsed by -232.01%, meaning the growth is being bought with poor economics. The Piotroski F-Score of 4/9 reinforces my concern about weak financial health. Debt-to-equity of 0.51 is not alarming, and ROCE of 6.01% is positive, but those returns are far below what I want from an investment. The stock trades closer to its 52-week low of ₹422 than its high of ₹712, and the market is clearly skeptical. There is no dividend, so a patient owner gets no cash while waiting for a turnaround. Promoter holding of 42% is a positive, but it does not change the math. I would need evidence of a genuine turnaround: narrowing losses, improving margins, a rising ROCE, and several quarters of credible profitability. Until then, this is not an investment; it is speculation. I will pass and wait for better odds elsewhere.
Data from BSE/NSE filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer