Subscribe for Saatvik Green Energy Ltd IPO; Deven Choksey

Deven Choksey, Saatvik Green Energy Ltd

Saatvik Green Energy is one of the leading manufacturer of solar photovoltaic (PV) modules in India, and also offers integrated solar project solutions. Its product portfolio includes Mono PERC and TopCon modules in both mono-facial and bifacial variants, catering to diverse category of end consumer including residential, commercial, industrial, and utility-scale projects. Since inception, it has supplied over 2.5 GW highly-efficient solar PV modules to consumers both in India and globally. It boasts three manufacturing facilities with total capacity of 3.8 GW, located in Ambala, Haryana spanned across 724.2k Sq.Ft., making it one of the largest single location module manufacturing facility. Over the years, it has expanded its core focus from module manufacturing to offering services including execution of engineering, procurement and construction (EPC) orders and providing operations and maintenance (O&M) services.

Valuation and Outlook

Saatvik Green Energy’s initial issue is priced at 20.0x TTM EV/EBITDA, compared to peer average of 28.0x TTM EV/BITDA, which appears to be fairly priced in, on comparing its financial performance with its domestic listed peers. Moreover, we expect the Company to perform better led by its proposed module and cell capacity at Odisha, which will drive improvement in overall margins. We assign “SUBSCRIBE” rating to the issue.

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