Daily Relative Strength Index (RSI) In A Bullish Mode of This Pharma Stock; Buy For TP Rs 635-685

As of the BSE closing session on Friday, Solara Active Pharma Sciences Ltd., a small-cap company, has a market capitalization of Rs. 1,985.01 Cr. It is an international, pure-play business that specialises in R&D for active pharmaceutical ingredients (APIs). On 19th April, the stock rallied to a record high level at Rs 563.75 apiece and later ended 16.32% higher at Rs 551.45 apiece. However, the brokerage firm Axis Securities has seen more upside in the stock and has given a buy rating on the stock for a target price of Rs 635-685 in a duration of 3-4 weeks.

Solara Active Pharma Sciences Share Price Target

Buy range: Rs 520-510, target: Rs 635-685, trend reversal: Rs 455, gain: 23%-33%, duration: 3-4 weeks

"The stock exhibited a significant breakout above the "Consolidation zone" around 505, reinforced by a strong bullish candle on the daily chart, suggesting a continuation of the medium-term uptrend. The surge in volume activity during the breakout indicates robust market participation, confirming the strength of the breakout movement. The stock's ability to maintain levels above key moving averages, including the 20, 50, 100, and 200-day simple moving averages (SMA), suggests a sustained uptrend and underscores the strength of the stock. The daily Relative Strength Index (RSI) in a bullish mode, positioned above its reference line, signals an ongoing uptrend. Following the breakout above the multiple resistance zone, the stock is expected to maintain its medium-term uptrend, with target levels identified between 635-685," said Axis Securities in a report.

Solara Active Pharma Sciences Financials

On a standalone basis, the company reported revenue from operations of Rs 248.73 crore in the December 2023 quarter down 36.99% from Rs. 394.75 crore in the December 2022 quarter. After reporting a net loss of Rs. 0.42 crore in Q3FY23, it dropped to Rs. 275.33 crore in Q3FY24, a 65654.76% drop. EBITDA was poor, falling 409.7% from Rs. 52.06 crore in the comparable quarter of FY23 to Rs. 161.23 crore in the reporting quarter. Solara Active Pharma Sciences is yet to declare its Q4 results for FY24.

Disclaimer

The recommendations made above are by market analysts and are not advised by either the author, nor Greynium Information Technologies. The author, nor the brokerage firm nor Greynium would be liable for any losses caused as a result of decisions based on this write-up. Goodreturns.in advises users to consult with certified experts before making any investment decision.