Solara Active hits new low

Solara Active Pharma has been battered down consistently for the Inw days. The stock opened lower at Rs.642 and soon went down to hit a new 52-week low at Rs.632.15, something which has been happening through this week.

The company declared its Q3FY22 earnings on 9th Feb, wherein it reported a consolidated net loss of Rs.140 crore v/s net profit of Rs.66 crore (YoY). This was on a bug 77% drop in revenue at Rs.100 crore.

The poor show is blamed on the company’s decision to reset its commercial business strategy – changing its dedicated Ibuprofen making plant at Vizag to a multi-purpose plant for various products. Adding to the woes were the higher costs driven by volatile material pricing environment and increased logistics cost.

What also did not help was the resignation of Managing Director and Chief Executive Officer Bharath Sesha.