The Altman Z-Score is a model designed to predict the likelihood of a company going bankrupt within the next two years. Created by American finance professor Edward Altman in 1968, the model is specifically designed for publicly traded manufacturing companies with assets greater than $1 million.
Warning Sign:
Altman Z-score of 2.22 is in the grey area. This implies that the company is under some kind of financial stress. If it is below 1.8, the company may face bankruptcy risk.
Solara Active Pharma Sciences has a Altman Z-Score of 2.24, indicating it is in Grey Zones. This implies that Solara Active Pharma Sciences is in some kind of financial stress. If it is below 1.81, the company may face bankrupcy risk.
The zones of discrimination were as such:
When Altman Z-Score <= 1.8, it is in Distress Zones.
When Altman Z-Score >= 3, it is in Safe Zones.
When Altman Z-Score is between 1.8 and 3, it is in Grey Zones.
The historical rank and industry rank for Solara Active Pharma Sciences's Altman Z-Score or its related term are showing as below:
NSE:SOLARAPP1'
s Altman Z-Score Range Over the Past 10 Years
Min: 0.14 Med: 1.6 Max: 4.23
Current: 2.22
During the past 10 years, Solara Active Pharma Sciences's highest Altman Z-Score was 4.23. The lowest was 0.14. And the median was 1.60.
Solara Active Pharma Sciences (NSE:SOLARAPP1) Altman Z-Score Explanation
X1: The Working Capital/Total Assets (WC/TA) ratio is a measure of the net liquid assets of the firm relative to the total capitalization. Working capital is defined as the difference between current assets and current liabilities. Ordinarily, a firm experiencing consistent operating losses will have shrinking current assets in relation to total assets. Altman found this one proved to be the most valuable liquidity ratio comparing with the current ratio and the quick ratio. This is however the least significant of the five factors.
X2: Retained Earnings/Total Assets: the RE/TA ratio measures the leverage of a firm. Retained earnings is the account which reports the total amount of reinvested earnings and/or losses of a firm over its entire life. Those firms with high RE, relative to TA, have financed their assets through retention of profits and have not utilized as much debt.
X3, Earnings Before Interest and Taxes/Total Assets (EBIT/TA): This ratio is a measure of the true productivity of the firm's assets, independent of any tax or leverage factors. Since a firm's ultimate existence is based on the earning power of its assets, this ratio appears to be particularly appropriate for studies dealing with corporate failure. This ratio continually outperforms other profitability measures, including cash flow.
X4, Market Value of Equity/Book Value of Total Liabilities (MVE/TL): The measure shows how much the firm's assets can decline in value (measured by market value of equity plus debt) before the liabilities exceed the assets and the firm becomes insolvent.
X5, Revenue/Total Assets (S/TA): The capital-turnover ratio is a standard financial ratio illustrating the sales generating ability of the firm's assets.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Solara Active Pharma Sciences Altman Z-Score Chart
NSE:SOLARAPP1 vs ZTS, UTHR: Altman Z-Score Comparison
For the Drug Manufacturers - Specialty & Generic subindustry, Solara Active Pharma Sciences's Altman Z-Score, along with its competitors' market caps and Altman Z-Score data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Solara Active Pharma Sciences Altman Z-Score vs Drug Manufacturers Industry
For the Drug Manufacturers industry and Healthcare sector, Solara Active Pharma Sciences's Altman Z-Score distribution charts can be found below:
* The bar in red indicates where Solara Active Pharma Sciences's Altman Z-Score falls into.
Solara Active Pharma Sciences Altman Z-Score Calculation
Altman Z-Score model is an accurate forecaster of failure up to two years prior to distress. It can be considered the assessment of the distress of industrial corporations.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency. GuruFocus does not calculate Altman Z-Score when X4 or X5 value is 0.
Solara Active Pharma Sciences (NSE:SOLARAPP1) has a Altman Z-Score of 2.24 as of Jul. 13, 2026. The Altman Z-score measures a company's bankruptcy risk. View historical data on Solara Active Pharma Sciences and its competitors. This is 40% above median its historical median of 1.60. Over the past decade, Solara Active Pharma Sciences' Altman Z-Score has ranged from 0.14 to 4.23. According to the industry distribution chart, Solara Active Pharma Sciences ranks #626 out of 953 companies in the Drug Manufacturers industry, placing it in the top 65.7%.
Is Solara Active Pharma Sciences' Altman Z-Score too high?
Solara Active Pharma Sciences' current Altman Z-Score of 2.24 is 40% above median its 10-year median of 1.60. Over the past 10 years, this metric has ranged from a low of 0.14 to a high of 4.23. The Drug Manufacturers industry median Altman Z-Score is 3.25. Solara Active Pharma Sciences' value of 2.24 is 31.1% below this industry median. Based on the distribution chart, Solara Active Pharma Sciences ranks #626 out of 953 companies in the Drug Manufacturers industry, which is below the industry midpoint. Overall, Solara Active Pharma Sciences has a GF Score™ of 73/100, reflecting its overall financial health beyond just this single metric.
How does Solara Active Pharma Sciences' Altman Z-Score compare to ZTS and UTHR?
According to the Drug Manufacturers industry distribution chart, Solara Active Pharma Sciences ranks #626 out of 953 companies for Altman Z-Score. This places Solara Active Pharma Sciences in the lower half of its industry. The industry median Altman Z-Score is 3.25. Solara Active Pharma Sciences' value of 2.24 is 31.1% below this benchmark. Historically, Solara Active Pharma Sciences' own Altman Z-Score has ranged from 0.14 to 4.23 over the past decade. While the company's 10-year median is 1.60 vs. the industry median of 3.25, Solara Active Pharma Sciences has consistently been below the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Altman Z-Score for a Drug Manufacturers company?
The median Altman Z-Score among Drug Manufacturers companies is 3.25, based on 953 companies in the industry. Companies in the top quartile (top 25%) have a Altman Z-Score significantly above this median, while those in the bottom quartile fall well below. However, Altman Z-Score should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Solara Active Pharma Sciences's current Altman Z-Score of 2.24 is 31.1% below the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Altman Z-Score mean?
A high Altman Z-Score can signal that a stock is expensive relative to its fundamentals. The Altman Z-score measures a company's bankruptcy risk. View historical data on Solara Active Pharma Sciences and its competitors. For the Drug Manufacturers industry, the median Altman Z-Score is 3.25 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Solara Active Pharma Sciences's current Altman Z-Score is 2.24, which is 40% above median its own 10-year median of 1.60. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Solara Active Pharma Sciences stock overvalued right now?
Solara Active Pharma Sciences (NSE:SOLARAPP1) has a current Altman Z-Score of 2.24. The stock's GF Value™ is ₹266.30, compared to a current price of ₹267.45 — trading 0.4% above its estimated fair value. The current Altman Z-Score is 2.24, which is 40% above median its 10-year median of 1.60 and 31.1% below the Drug Manufacturers industry median of 3.25. Solara Active Pharma Sciences' overall GF Score™ is 73/100 with 3 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Altman Z-Score calculated?
Altman Z-Score is calculated from a company's financial statements. For Solara Active Pharma Sciences (NSE:SOLARAPP1), the current Altman Z-Score is 2.24 as of Jul. 13, 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Solara Active Pharma Sciences (NSE:SOLARAPP1) Overvalued in 2026?
Based on GuruFocus' analysis, Solara Active Pharma Sciences stock appears to be overvalued.
The current stock price of ₹267.45 is trading 0.4% above its estimated GF Value™ of ₹266.30.
Key valuation signals for NSE:SOLARAPP1:
Altman Z-Score: 2.24 (40% above median its 10-year median of 1.60)
GF Value™: ₹266.30 vs. price of ₹267.45 (0.4% above fair value)
Industry Position: 31.1% below the Drug Manufacturers median (#626 of 953)
No single metric tells the full story. See the NSE:SOLARAPP1 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Solara Active Pharma Sciences Business Description
Solara Active Pharma Sciences Ltd is engaged in the Active Pharmaceutical Ingredients (API) in India. It manufactures and develops APIs and offers services, including CRAMS and contract manufacturing for APIs. The company offers products and services, such as Anaesthetic, Analgesics, Antiviral, Retinoid, Anti-emetic, Antimalarial, Diuretic, Muscle relaxant, Antiallergics, Antihypertensive, Calcimimetic agent, Anti-seizure, Antigout, Cardiovascular, Anti-infective, Cough suppressant, and others. It also offers contract services, including contract development and manufacturing, and analytical services. Geographically, the company generates all of its revenue from India.
73GF Score
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