Live: Sensex, Nifty Fluctuate; Solara Pharma Up 12% On Macquarie Note

Shares of the API-maker are surging in today's session after brokerage firm Macquarie initiated coverage on the stock with an outperform rating.

Macquarie’s Rationale:

• Among top three pure-play API manufacturers in India
• Long-term focus and growing presence in CRAMS suggest strong outlook even beyond FY23
• Believe growth is more sustainable than some of its Indian API peers
• Expect 25% Ebitda CAGR over FY20-23, building on its nearly 40% Ebitda CAGR over FY18-20
• Likely to report strong cumulative Free Cash Flow of over Rs 220 crore over FY21-23E
• Among the cheapest API stocks globally at 8.8x FY23E EV/Ebitda
• Expect the stock to re-rate further courtesy improving margin profile and strong regulatory track record

Shares surged as much as 19% to an all-time high of Rs 1,248, before cooling off. Macquarie's price target of Rs 1,680 implies a potential upside of over 50% from Tuesday's closing price.

• Pre-sales up 98% quarter-on-quarter to Rs 200 crore, as on September 30 while Collections rise 117% to Rs 141 crore, as compared to the previous quarter.
• High buyer interest for Signia High, Borivali and 1st Avenue, Sunteck City, Goregaon (West).
• Construction activity inching towards pre-Covid levels
• Reduced stamp duty and low interest rates is expediting the decision time cycle for prospective customers.
• Confident of collections growing much stronger from hereon.
• Renewed interest for high quality products offered by large organised developers, especially those with strong balance sheets and high brand recall.

Shares gained as much as 6.3% to Rs 278, post the announcement. The stock is up for the second straight day.

Indian equity markets have opened little changed after four straight days of gains, in-line with the subdued and volatile sentiment across global markets.

The S&P BSE Sensex opened 0.1% higher at 39,633 while the NSE Nifty 50 index opened little changed at 11,679. Both Sensex and Nifty had gained 8% in the last seven trading sessions.

Sectoral indices too are off to a muted start. The Nifty Media index has opened with gains of 0.5% while the other indices are flat.

Within the broader markets, the Midcap index has opened little changed while the smallcap index is gaining 0.4% at the start of trade.

1,104 stocks on the NSE have opened with gains while 780 stocks are declining.

• Nifty: Sell 11,500 Put Of The October 8 Expiry in the range of Rs 31-33. Target of Rs 17-11 with a stop loss of Rs 45.
• Nifty Bank: Buy in the range of 22,800-22,850 for target of 23,000-23,200 and stop loss of 22,700
• Buy Adani Ports October futures for target of Rs 368.1 and Rs 373.5 with a stop loss of Rs 360.9
• Sell Tata Steel October futures for target of Rs 374.2 and Rs 366.3 with a stop loss of Rs 384.8
• Adani Ports and Tata Steel are intraday recommendations

Source: ICICI Direct