Solara Active Pharma spurts after broker initiates coverage

Solara Active Pharma Sciences surged 11.53% to Rs 1171.25 after a foreign brokerage initiated coverage on the stock with an outperform rating and a target price of Rs 1680 per share.

The brokerage reported said that Solara is among top three pure-play API manufacturers in India. It added that long-term focus and growing presence in Contract Research & Manufacturing Services (CRAMS) suggest strong outlook even beyond FY23.

The foreign research house believe that the company's growth is more sustainable than some of its Indian API peers. It expects the stock to re-rate further courtesy improving margin profile and strong regulatory track record.

Solara Active Pharma Sciences offers a basket of diversified, high-value commercial APIs and contract manufacturing services in over 75 countries. It has a manufacturing base comprising five globally compliant API facilities, with approvals including the USFDA, EU GMP and PMDA in Japan.

The company's net profit jumped 59.4% to Rs 42.28 crore on a 5.5% rise in net sales to Rs 348.42 crore in Q1 June 2020 over Q1 June 2019.

On a year-to-date (YTD) basis, the stock has zoomed 170.29% while the benchmark S&P BSE Sensex has lost 3.60% during the same period.

Powered by Capital Market - Live News