Saatvik Green Energy
Stock Snapshot
Price Performance
Vista Outlook
Basis of our Recommendation
Saatvik Green Energy's recent strategic shift towards backward integration and significant capacity expansion positions the company for long-term growth, despite facing execution risks and margin pressures. Management's focus on increasing cell manufacturing capacity to 6GW by FY28 aims to enhance margins from 8% to 15%, capitalizing on strong domestic demand and government support. However, the company must navigate challenges such as competitive pricing in utility-scale tenders and potential supply chain disruptions. Vista's forecast reflects a cautious outlook, anticipating revenue contraction and margin pressure in the near term, with a fair valuation aligned with intrinsic value. The expected upside remains limited, with a 12-month target price of INR 259.63, indicating a sell recommendation. Over the next 12-24 months, key opportunities include capturing higher-value DCR volumes and diversifying into energy storage, while watchpoints include execution risks related to large-scale projects and volatility in global supply chains
Why We Like This Stock
- Management's aggressive capacity expansion and backward integration strategy are expected to improve margins significantly
- A robust order book of INR 97 billion indicates strong demand and potential revenue stability
- Government-backed capacity targets and favorable policies support the company's growth trajectory in the renewable energy sector
Things To Watch Out For
- Execution risks related to large-scale capital expenditures could hinder timely project completions
- Competitive pricing pressures in utility-scale tenders may compress margins despite increased capacity
- Ongoing global supply chain volatility poses risks to production and operational efficiency
Key Parameters
Financial Snapshot
View Technicals Analysis →| Actuals | Forecast | ||||
|---|---|---|---|---|---|
| FY24 | FY25 | FY26 | FY27 | FY28 | |
| Revenue (Cr.) | 1,088 | 2,158 | 4,548 | 3,370 | 4,528 |
| Profit Before Tax (Cr.) | 132 | 282 | 446 | 186 | 326 |
| PBT Margin | 12.1% | 13.1% | 9.8% | 5.5% | 7.2% |
| Net Profit (Cr.) | 95 | 215 | 367 | 154 | 269 |
| Earnings Per Share | 7.5 | 16.9 | 28.9 | 12.1 | 21.2 |
Analyst Recommendations
| Broker | Recommendation | Target Price | Date |
|---|---|---|---|
| Ambit Capital | ▲ Buy | 480 | 25-Sep-2026 |
| Motilal Oswal | ▲ Buy | 508 | 21-Sep-2026 |
Company Overview
Show Company Profile
Saatvik Green Energy Limited manufactures and sells solar photovoltaic modules in India and internationally. Its solar energy products include monocrystalline passive emitter and rear cell modules and N-TopCon solar modules for various applications comprising residential, commercial, and utility scale solar projects. The company also provides solar pumps, such as solar submersible and surface pumps and controllers; and end-to-end engineering, procurement, and construction services for solar projects. In addition, it offers ground-mounted and rooftop solar installation services; and operation and maintenance services. The company was incorporated in 2015 and is based in Gurugram, India.