🎯 STOCK TO WATCH
WEEKLY R4 MOMENTUM BREAKOUT SETUP
₹730–740 → ₹1,593 → ₹1,857 → ₹4,041
A specialty API recovery + base-business acceleration + deleveraging + momentum setup appearing on my Weekly R4 Momentum Breakout Scanner.
💊 SOLARA ACTIVE PHARMA SCIENCES LTD
📌 TRADE LEVELS
🟢 Buy Zone: ₹730–740
🟠 Breakout Zone: ₹725
🔴 Stop Loss: ₹484
🎯 Target 1: ₹1,593
🚀 Target 2: ₹1,857
🔥 Target 3: ₹4,041
🔥 WHY SOLARA?
• Strong Q1 FY27 recovery: Consolidated revenue reached ₹384 Cr, up 20% YoY, while PAT rose 55% YoY to ₹16.3 Cr.
• Best profitability in 18 quarters: Management highlighted that Q1 FY27 delivered its highest EBITDA and PAT in 18 quarters.
• Base business accelerating: Base-business revenue grew 24% YoY to ₹307 Cr, making it the key earnings engine.
• Margin improvement: Q1 EBITDA was ₹63.5 Cr, with EBITDA margin around 17%, despite raw-material and supply-chain pressures.
• Deleveraging underway: Net debt declined to about ₹479 Cr, down roughly ₹135 Cr during the quarter, with management targeting sub-₹450 Cr by March 2027.
• Strategic optionality: Management is reviewing the Ibuprofen business, while also evaluating future CRAMS and other growth opportunities.
👀 WHY IT CAUGHT MY ATTENTION
📈 ₹725 is the key technical trigger on my R4 scanner.
📈 Base business growth is running significantly ahead of consolidated growth.
📈 EBITDA and PAT have reached multi-quarter highs.
📈 Debt reduction is improving the balance-sheet picture.
📈 Capacity utilisation across the base business is around 70%, leaving room for further growth.
📈 The potential resolution of the loss-making Ibuprofen business could materially improve consolidated earnings quality.
⚠️ IMPORTANT
This is a high-risk momentum setup, particularly because the business is still undergoing a strategic transition.
The Ibuprofen business remains loss-making, with management indicating quarterly EBITDA losses of roughly ₹10–15 Cr until the strategic review is resolved. The West Asia crisis has also created raw-material and supply-chain pressures.
So the key monitor is whether base-business growth + margin resilience + deleveraging can continue while the Ibuprofen overhang is addressed.
Risk Defined. Reward Visible.
⚠️ This content is for educational purposes only and not investment advice. Please do your own due diligence before making any investment decisions.
© 20K Microcap Investing | R4 Momentum Desk
#SolaraActivePharma #SOLARA #PharmaStocks #APIStocks #CDMO #MomentumStocks #BreakoutStocks #IndianStocks #R4Momentum #StockToWatch
WEEKLY R4 MOMENTUM BREAKOUT SETUP
₹730–740 → ₹1,593 → ₹1,857 → ₹4,041
A specialty API recovery + base-business acceleration + deleveraging + momentum setup appearing on my Weekly R4 Momentum Breakout Scanner.
💊 SOLARA ACTIVE PHARMA SCIENCES LTD
📌 TRADE LEVELS
🟢 Buy Zone: ₹730–740
🟠 Breakout Zone: ₹725
🔴 Stop Loss: ₹484
🎯 Target 1: ₹1,593
🚀 Target 2: ₹1,857
🔥 Target 3: ₹4,041
🔥 WHY SOLARA?
• Strong Q1 FY27 recovery: Consolidated revenue reached ₹384 Cr, up 20% YoY, while PAT rose 55% YoY to ₹16.3 Cr.
• Best profitability in 18 quarters: Management highlighted that Q1 FY27 delivered its highest EBITDA and PAT in 18 quarters.
• Base business accelerating: Base-business revenue grew 24% YoY to ₹307 Cr, making it the key earnings engine.
• Margin improvement: Q1 EBITDA was ₹63.5 Cr, with EBITDA margin around 17%, despite raw-material and supply-chain pressures.
• Deleveraging underway: Net debt declined to about ₹479 Cr, down roughly ₹135 Cr during the quarter, with management targeting sub-₹450 Cr by March 2027.
• Strategic optionality: Management is reviewing the Ibuprofen business, while also evaluating future CRAMS and other growth opportunities.
👀 WHY IT CAUGHT MY ATTENTION
📈 ₹725 is the key technical trigger on my R4 scanner.
📈 Base business growth is running significantly ahead of consolidated growth.
📈 EBITDA and PAT have reached multi-quarter highs.
📈 Debt reduction is improving the balance-sheet picture.
📈 Capacity utilisation across the base business is around 70%, leaving room for further growth.
📈 The potential resolution of the loss-making Ibuprofen business could materially improve consolidated earnings quality.
⚠️ IMPORTANT
This is a high-risk momentum setup, particularly because the business is still undergoing a strategic transition.
The Ibuprofen business remains loss-making, with management indicating quarterly EBITDA losses of roughly ₹10–15 Cr until the strategic review is resolved. The West Asia crisis has also created raw-material and supply-chain pressures.
So the key monitor is whether base-business growth + margin resilience + deleveraging can continue while the Ibuprofen overhang is addressed.
Risk Defined. Reward Visible.
⚠️ This content is for educational purposes only and not investment advice. Please do your own due diligence before making any investment decisions.
© 20K Microcap Investing | R4 Momentum Desk
#SolaraActivePharma #SOLARA #PharmaStocks #APIStocks #CDMO #MomentumStocks #BreakoutStocks #IndianStocks #R4Momentum #StockToWatch
Отказ от ответственности
Информация и публикации не предназначены для предоставления и не являются финансовыми, инвестиционными, торговыми или другими видами советов или рекомендаций, предоставленных или одобренных TradingView. Подробнее читайте в Условиях использования.
Отказ от ответственности
Информация и публикации не предназначены для предоставления и не являются финансовыми, инвестиционными, торговыми или другими видами советов или рекомендаций, предоставленных или одобренных TradingView. Подробнее читайте в Условиях использования.