The jitters of the deadly disease coronavirus are felt across the world. All sectors especially metal and pharmaceutical have been the most affected due to their direct dependence on China for raw material imports. One such stock that has continued to rally despite direct dependence on the virus affected country is Solara Active Pharma Sciences.

Share Market Live

NSE

The small-cap stock this year has already surged 69 percent and has rallied about 93 percent since the last one year. In fact, the stock touched it's 52-week high and rose over 6 percent intraday today after receiving zero 483 observations from the US FDA for its Puducherry and Mangalore facilities.

As per the research report by Haitong, the coronavirus crisis in China has forced pharmaceutical and chemical companies to shut their manufacturing units from mid-January.

"Most companies operating out of the affected regions have extended their shutdowns to mid-February. Fortunately, this healthcare crisis coincided with the Chinese New Year, due to which most API companies were well stocked in India. However, after speaking with industry experts, we believe that these supplies are likely to be exhausted by mid-March", the report added.

Therefore, the stock has been rising irrespective of the mounting fears of the disease in parts of Asia and Europe.

Furthermore, Solara's earnings have remained robust and consistent over quarters. In the recent December quarter, the company reported a net profit jump of 81 percent year-on-year (YoY) to Rs 41.21 crore as compared to Rs 22.79 crore in the same quarter last year. Sales declined 3.52 percent YoY but other income surged 64 percent YoY during October-December quarter this fiscal.