Solara Active Pharma Sciences - Pure Play API

I also feel market has over-reacted to the demerger news…Actually just to re-check the thesis, now that demerger is given, did some rough valuation maths as below…

FY25 est rev: 1300+ cr (120 cr crams, 1200 cr base business).

FY29 est rev - crams: 500 cr
FY29 est rev - base business (12-14% cagr): 2000 cr @ 20% ebitda

Assuming by FY29

  • Debt will be repaid and
  • For crams, PE will come for 20% stake…

Rough FY29 mcap could be:

  • Crams: 4000 cr (8x-10x P/S), 3200 cr for existing shareholders since 20% will be owned by PE
  • Base business: 4000 cr (10x Ebitda)

Current mcap : 2300 cr
Estimate mcap for existing shareholders (FY29): 7200 cr (3x returns)

6 Likes

Keeping the current uncertainty about the business situation and external market conditions how should one do position sizing?

If you intend to do a 3% top up on existing allocation. How should one approach?

2 Likes

Some options:

  1. Price anchoring - pick a price in your mind that gives you comfort and buy when the market price dips below this price.
  2. SIP (time anchoring) - just buy a few shares every week/month until you have invested as much as you like.

None of this is a suggestion to invest, please speak to your financial advisor.

Disclosure: invested

1 Like

I am just sharing this update.

I hope you find it useful

Not invested as of now.

dr.vikas

Promoter adding from open mkt above 1L quantity which is aprxx 4 cr…well above…looking interesting

1 Like