Synopsis: Shares of Saatvik Green Energy gained 7% after Motilal Oswal initiated coverage with a ‘Buy’ rating, citing its Rs. 8,000 crore order book, capacity expansion plans, and expectation of a 44% PAT CAGR over FY26–FY28.
The shares of this company are one of India’s leading solar PV module manufacturers that also provides engineering, procurement, and construction (EPC) services are in the spotlight after rising 7 percent during today’s trading session following a bullish target price initiated by brokerage Motilal Oswal.
With a market capitalisation of Rs. 6,064 cr, the shares of Saatvik Green Energy Ltd were trading at Rs. 477.15 per share, jumping 7% in today’s market session, making a high of Rs. 482.20, up from its previous close of Rs. 450.45 per share. The stock has gained 9% over the past year, surged 27% on a year-to-date basis, and advanced 21% over the last six months. It has also risen 1% in the past month.
What’s the News
Motilal Oswal has initiated coverage on Saatvik Green Energy with a ‘Buy’ rating and a target price of Rs. 565, indicating a potential upside of around 25 percent from the previous closing price. The brokerage believes the company is well-positioned to benefit from India’s accelerating renewable energy expansion and favourable government policies supporting domestic solar manufacturing.
The brokerage expects Saatvik Green Energy to significantly strengthen its manufacturing capabilities, with solar module capacity projected to increase from 4.8 GW to 8.8 GW. This capacity expansion is expected to enable the company to capture rising demand from both utility-scale and rooftop solar projects, supported by the ongoing renewable energy capital expenditure cycle.
Saatvik Green Energy currently has an order book of 5.9 GW valued at approximately Rs. 8,000 crore, which, according to Motilal Oswal, provides revenue visibility for virtually the entire FY27. The healthy order pipeline is expected to support sustained business growth and improve earnings predictability.
Margin Expansion and Robust Earnings Outlook
The brokerage expects the company’s EBITDA margin to improve from around 10 percent in FY27 to 15 percent in FY28, driven by operating leverage, higher capacity utilisation, and an improved product mix. It forecasts revenue, EBITDA, and profit after tax (PAT) CAGRs of 38 percent, 55 percent, and 44 percent, respectively, over FY26–FY28.
Despite its strong growth prospects, Motilal Oswal believes Saatvik Green Energy continues to trade at a discount to larger listed peers, offering an attractive risk-reward profile. The brokerage expects this valuation gap to narrow as the company executes its expansion plans and delivers consistent earnings growth.
In conclusion, whether Saatvik Green Energy can deliver a 44 percent PAT CAGR will largely depend on its ability to execute its Rs. 8,000 crore order book, expand module capacity from 4.8 GW to 8.8 GW, and achieve the expected margin improvement. If the company successfully delivers on these operational milestones amid strong renewable energy demand, it could justify the robust earnings growth projected by Motilal Oswal.
Saatvik Green Energy Ltd. is an integrated solar energy company engaged in the manufacturing of photovoltaic (PV) solar modules and the execution of engineering, procurement, and construction (EPC) projects for utility-scale, commercial, industrial, and residential customers.
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