Accord Healthcare is looking into the possibility of bringing back the gastrointestinal drug ranitidine, which has been suspended since November 2020. Solara active pharma is the only approved supplier…look out for the news on ranitidine soon…
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The pharma company’s resolution to appoint Rajender Juvvadi Rao as executive director and vice chairperson for three years from August 25, 2021, and fix his remuneration was voted against with 50.88% of the total institutional investors’ votes. However, the resolution was approved.
The Link is re-directing to a different webpage, can you please re-check. Thanks
I too read about this today…is it bad in terms of good corporate governance…
Came across this comprehensive report
Reaffirms thevaluationandfutureoutlook
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Just want to quickly point out that all of Simply Wall St’s articles are automatically generated.
While some of the charts offer a nice visual perspective, like shareholding and the debt/equity, relying on them to reaffirm your thesis/outlook will be incredibly misleading.
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Thanks for the information about automated report…my conviction or comment was on their future valuation based on the analyst reports (S&P Global)…ie one more positive view on future outlook.
As I know there is a impact on Pharma industry due to raw material becoming costly. Is this the only reason for Solara to come down? Is there any other news which I missed.
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Hi, please help us understand about the ICD Issues
Thanks in Advance
Solara Active Pharma -
API + CRAMS + BACKWARD INTEGRATION = TREMENDOUS OPPORTUNITY
Watch Video For Detailed Analysis
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Solara Q2FY22 Results & Investor Presentation
Concall
- Ibuprofen is the major contributor to the revenue (this is the new learning for me that they have such huge dependency on this commodity kind of API )
- Impact is due to less demand from Ibuprofen and partly due to RM price increase, they have not taken any price cut on the supply side (they have long term contracts with customers )
- Huge Inventory due to less demand on Ibu
- Demand is going to be strong for favipiravir and molnupiravir intermediates
- Ibu supply will be normalized from Q4 FY22 onwards
- Do not see any structural changes on the supply side, many of the peers are rationalizing their supply chains
- Vizag Plant is now converted into MPP , they cannot use this plant to supply to US due to FDA audit pending
- Backward integration project for IBU is completed, trials are underway, most likely will contribute from Q4FY22 onwards
- CDMO / CSM is doing very good and added few new customers , margins 6-7% higher than normalized API margins
- Aurore - Valuations are now increased from 1407 → 1646 per share, the entire merger process have to start again most likely will be completed in 6 - 12 months time
- Aurore - Aurore Pharma Private Limited (APPL) - only 67% is merged , rest will be merged later point, provided minority share holders approval
- Focusing more on optionality of Ibu Derivatives , margins are good and customer stickiness in these salts
- Strong growth from LRM (Less Regulated Markets )
- Few of the products are now being manufactured from Vizag plant instead of Pondicherry plant , due to former being recently built and cost effective
Key Triggers to watch out for
Backward integration plant - How much it will contribute as savings to the bottom-line
FDA Audit
Aurore Merger
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Solara doesn’t give product break up revenues, We never know from which molecule the risk is coming .
- Although there is a considerable china risk For Sourcing RM , management has been trying to derisk it for last 2 years but nothing substantial de risking has happened.
it was 30% dependence on china in 2020 & situation is still same as evident by results.
Although the future triggers outweigh these anti thesis pointers, Crams business scaling well & if they are able to de risk RM from china this business is certainly going to do wonders
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I think the revenues are down not because of RM pricing pressure but because of volume uptake , 615MT IBU orders are deferred by customers.
The IBU share in the total mix is “Known Unknown” and let us assume it as 30% ?
One more distraction I often see is one of the promoter (classified as ) always does this pledging, today also they did the pledge. They are not majority shareholders but this is unnecessary distraction.
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Can anybody guide to why the Solara Promoters are pledging Shares
This is link i saw sometime ago…
Seems share price drop led to provide additional share pledge to keep enough margin…
End use of pledge money not known.
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from one of the research report it is derived that the IBU dependency is 30% , all are adding capacities , IOCLP, SMS , everyone is saying they are the lowest cost producer.
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Aurore Life Sciences Private Limited has been a successful applicant in relation to Pharma 2.0 PLI scheme. Under Group C category (Cash intensive upto 50 crores over a period of 5 years, in relation to production linked investment made).
https://www.motilaloswal.com/campaign/ResearchReport/29Nov/Solara.html?s=08
Motilal Oswal report based on current market conditions and future outlook. Target price 1550.
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Hi everyone,
Can someone please help me to understand few recent announcement in BSE:
-
27-Dec-21
Name of the promoter or PAC on whose shares encumbrance has been created/ released/ invoked: PRONOMZ VENTURES LLP,
Details of the creation of encumbrance: Release of Peldge and Pledge on EQUITY SHARES - SOLARA ACTIVE PHARMA SCIENCES LIMITED -
22-Dec-21
Name of the promoter or PAC on whose shares encumbrance has been created/ released/ invoked: PRONOMZ VENTURES LLP
Details of the creation of encumbrance: Release of Peldge and Pledge on EQUITY SHARES - SOLARA ACTIVE PHARMA SCIENCES LIMITED" -
2-Dec-21
Name of the promoter or PAC on whose shares encumbrance has been created/ released/ invoked: AGNUS CAPITAL LLP
Details of the creation of encumbrance: Peldge on EQUITY SHARES - SOLARA ACTIVE PHARMA SCIENCES LIMITED -
2-Dec-21
Name of the promoter or PAC on whose shares encumbrance has been created/ released/ invoked: CHAYADEEP PROPERTIES PRIVATE LIMITED
Details of the creation of encumbrance Creation of Pledge on EQUITY SHARES - SOLARA ACTIVE PHARMA SCIENCES LIMITED -
2-Dec-21
Name of the promoter or PAC on whose shares encumbrance has been created/ released/ invoked: KARUNA BUSINESS SOLUTIONS LLP
Details of the creation of encumbrance Peldge on EQUITY SHARES - SOLARA ACTIVE PHARMA SCIENCES LIMITED
There are many more. Can someone please explain what does it mean.
Regards
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