Saatvik Green Energy Limited

Technology — Solar · NSE

₹399.80+₹4.10 (+1.04%)

DalalBaazaar Score

61 / 100

🟢 Good

Verdict

NEUTRAL

Risk

Moderate

Driven by negative free cash flow, small-cap size, which brings sharper price swings.

In simple words: Strong business and financial position, but sales are shrinking. Cash generation is currently the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 6:08 pm

Mixed / neutral. No major red flags jump out, but nothing here screams "obviously cheap" either. This is a name that needs a peer comparison and a view on near-term earnings triggers before sizing a position.

Understanding the Business

Company site ↗

The 60-second version of Saatvik Green Energy Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

Saatvik Green Energy Limited manufactures and sells solar photovoltaic modules in India and internationally. The company offers mono PERC and N-topcon modules; inverters; SuryaConnect Solar Kit, a pre-engineered turnkey solar kit; transformers; and solar cell technology products.

IndustrySolar

SectorTechnology

Employees722

Annual revenue₹4,548 Cr

How does it make money?

Turns over ₹4,548 Cr a year. Of every ₹100 of sales, about ₹8 reaches shareholders as profit, with ₹13 left at the operating level before interest, tax and depreciation. Each of its 722 employees supports ₹6.30 Cr of revenue a year, the signature of a capital- or asset-led business.

EBITDA margin12.8%

Net margin7.9%

Revenue / employee₹6.30 Cr

Who are its competitors?

The closest listed comparisons in its industry are TATA CONSULTANCY SERV LT, INFOSYS LIMITED, HCL TECHNOLOGIES LTD, WIPRO LTD. These are the companies its valuation and returns are measured against elsewhere in this report.

TATA CONSULTANCY SERV LTP/E 17.3x · ROE 45.6%

INFOSYS LIMITEDP/E 15.8x · ROE 32.0%

HCL TECHNOLOGIES LTDP/E 20.4x · ROE 24.6%

WIPRO LTDP/E 14.5x · ROE 15.9%

What is its competitive advantage?The numbers suggest a real one

ROCE has stayed above 15% in every year available and stands at 30.8%. Returns that high normally get competed away; when they persist, something is protecting them, and its ROE of 26.3% against a peer median of 32.0% is consistent with that. What that something is — brand, scale, switching costs, regulation — the accounts cannot tell you.

ROCE30.8%

ROE26.3%

Peer median ROE32.0%

What is the outlook?

2 analysts covering the stock expect revenue to grow about 59.7% and earnings to grow about 144.6% in the year to 2028. These are estimates by people who follow the company, not a forecast for the wider industry.

Est. revenue growth+59.7%

Est. earnings growth+144.6%

Analysts2

What has been driving growth?

Sales and margins have both contributed to where profit is now. Over 3 years revenue moved +647% while net margin moved +908% relative to itself. What this cannot tell you is which products, customers or geographies did the work — that lives in the segment disclosures of the annual report.

Revenue effect+647%

Margin effect+908%

DalalBaazaar Score

61/ 100

Good

Weighted across six categories. Every point is explained below.

✗ Small Cap: thinner liquidity and sharper drawdowns are normal
✗ Profits have swung sharply from year to year — earnings are hard to forecast
✗ Negative free cash flow means dependence on external funding

Quality vs. Valuation

Company Quality

68/ 100

Good

How good the business is, ignoring the share price entirely.

Valuation

47/ 100

Fair

What you are being asked to pay, ignoring how good the business is.

A reasonable business at a reasonable price — neither the quality nor the valuation stands out in either direction.

Historical Valuation

Current P/E

29.5x

1.3Y Median

23.0x

15 monthly readings · mean 21.9x · range 13.3x–30.7x

Sector Median

16.5x

median of 4 sector peers

⚠️Current valuation is approximately 28% above its 1.3y median of 23.0x. Paying more than usual needs a reason — faster growth, a better balance sheet, or a re-rating you believe in.

⚠️Against its sector it trades 78% above the peer median of 16.5x.

vs. its own history

Expensive

23.0x median over 15 months · +28%

vs. sector peers

Expensive

16.5x median of 4 peers · +78%

vs. generic bands

Fair

15x–35x

P/E (Trailing)

29.5x

P/B

3.52x

EV/EBITDA

10.3x

PEG

0.09

Dividend Yield

None

What's Good / What's Bad

🟢 What's Going Well4

Margins are improving
EBITDA margin is up from 3.9% to 12.8% over 3 years.
Return on capital is rising
ROCE has improved from 24.8% to 30.8%.
High return on capital employed
ROCE of 30.8% is the mark of a business that converts capital into profit efficiently.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention4

Debt is rising
Total debt is up 514% over 3 years — worth checking what it funded.
Free cash flow is negative
The business is not currently covering its capital spending from operations.
Receivables growing faster than sales
Receivables are up 3240% against revenue growth of 647% — customers are taking longer to pay.
Valuation above its historical average
At 29.5x the stock trades 28% above its own median of 23.0x.

Red Flags

4 items require attention · 4 high

🔴Debt has risen sharplyFinancial
Total debt is up 514% over 3 years, from ₹153 Cr to ₹939 Cr.
🔴Free cash flow negative for 4 yearsFinancial
The business has not covered its capital spending from operations for several years running, which has to be funded externally.
🔴Profit up while operating cash flow fallsFinancial
Reported profit rose but cash generated by operations declined — worth checking whether earnings are being supported by non-cash items or working capital.
🔴Receivables growing faster than salesFinancial
Receivables up 3240% against revenue up 647% — sales are being booked faster than they are collected.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Capital compounds at a high rate
ROCE of 30.8% means each rupee reinvested earns well above what capital costs. If the company can keep deploying at this rate, growth creates value rather than just consuming cash.
Margin expansion has further to run
EBITDA margin has risen from 3.9% to 12.8%. If that holds, profit compounds faster than sales and today's multiple looks cheaper in hindsight than it does now.
Earnings have proved durable
Profitable in every one of the last 4 reported years. Consistency lowers the risk that any single bad year is structural rather than cyclical.

🔴 Bear CaseWhat could go wrong?

Sales are being booked faster than collected
Receivables are up 3240% against revenue up 647%. If customers keep taking longer to pay, reported profit will not turn into cash — and write-offs follow if some never do.
The price already assumes success
The stock trades 28% above its own median multiple. At this level the business has to deliver just to stand still, and a stumble is repriced twice — lower earnings on a lower multiple.
Earnings are hard to forecast
Profit has swung sharply from year to year, so any single year — good or bad — is a weak guide to the next. Cyclical earnings deserve lower multiples for that reason.
Size brings its own risk
Small Cap businesses are thinly traded, so exits are harder in a falling market and single events move the price more than they would for a larger company.
Several serious flags at once
4 high-severity checks triggered. Individually each has an explanation; together they raise the chance that something structural is wrong rather than a one-off.

🟡 Key Things to WatchMeasurable tripwires, set against where this company stands today

1Revenue growth stays above 72% a year✓ 95.5% CAGR
Latest reported year was -44.2%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 11%✓ 12.8%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Free cash flow remains positive✗ -₹628 Cr
Profit that never becomes cash eventually stops being profit.
4Debt / EBITDA stays below 2x✓ 1.6x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
5ROCE stays above 28%✓ 30.8%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

8 / 12 checks passed

✓ Strong return on equity (ROE ≥ 15%)
✓ Strong return on capital employed (ROCE ≥ 15%)
✗ Healthy net margin (≥ 10%)
✗ Generates positive free cash flow
✓ Manageable leverage (Debt/Equity < 1.0)
✓ Adequate short-term liquidity (Current Ratio ≥ 1.0)
✗ Revenue growing year-over-year
✓ Profit growing year-over-year
✓ Not trading at an extreme valuation (P/E < 40x)
✓ Not buying right at the 52-week high
✓ Analyst consensus isn't majority-sell
✗ Short-term technical trend isn't bearish

Price history

Quick Metrics

4 good · 5 neutral · 2 weak

Market Cap

₹5,082 Cr

Small Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

29.5x

Fair

Fairly valued against the generic band

P/B Ratio

3.52x

Fair

Moderate premium to the company's book value

EPS (TTM)

₹13.55

Profitable

Profitable on a per-share basis

ROE

26.3%

Strong

Strong capital efficiency

ROCE

30.8%

Strong

Earns comfortably above its likely cost of capital

Debt/Equity

0.69x

Moderate

Moderate leverage

Revenue Growth (YoY)

-44.2%

Shrinking

Sales are contracting

Profit Growth (YoY)

64.4%

Healthy

Profits growing at a healthy clip

Dividend Yield

None

No dividend yield reported — usually means no payout, but verify if one was recently initiated

Free Cash Flow

-₹628 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

CMP

₹399.8

P/E (Forward)

7.7x

Improving

Below the trailing multiple — the street expects earnings to grow into the price

Operating Margin

5.7%

Average

Average margins

Net Margin

5.9%

Average

Average bottom-line conversion

Current Ratio

1.43

Comfortable

Healthy short-term liquidity

52W Range Position

32%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

412.7 / 415.1

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

22.9

Oversold zone

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹609 Cr	₹1,088 Cr	₹2,158 Cr	₹4,548 Cr	+95.5%
EBITDA	₹24 Cr	₹157 Cr	₹362 Cr	₹581 Cr	+189.9%
EBITDA Margin	3.9%	14.4%	16.7%	12.8%	—
PAT (Net Profit)	₹5 Cr	₹100 Cr	₹217 Cr	₹357 Cr	+322.3%
EPS	₹0.37	₹7.9	₹17.1	₹29.76	+330.4%
ROE	23.4%	83.2%	63.8%	26.3%	—
ROCE	24.8%	64.1%	61.1%	30.8%	—
Total Debt	₹153 Cr	₹280 Cr	₹503 Cr	₹939 Cr	+83.1%
Free Cash Flow	-₹19 Cr	-₹17 Cr	-₹145 Cr	-₹628 Cr	—

🟢 Revenue has grown at 95.5% a year over 3 years.

🟢 EBITDA has grown at 189.9% a year over 3 years.

🟢 EBITDA Margin has risen from 3.9% to 12.8% over 3 years (+8.9 pts).

🟢 PAT (Net Profit) has grown at 322.3% a year over 3 years.

🟢 EPS has grown at 330.4% a year over 3 years.

🟢 ROE has risen from 23.4% to 26.3% over 3 years (+2.8 pts).

🟢 ROCE has risen from 24.8% to 30.8% over 3 years (+6.0 pts).

🔴 Total Debt has grown at 83.1% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹3,115 Cr

Total Liabilities

₹1,754 Cr

Total Debt

₹939 Cr

Cash & Equivalents

₹27 Cr

Operating Cash Flow

-₹27 Cr

Capex

-₹601 Cr

Shareholding (proxy)

Institutional Holding

10.8%

Insider Holding

84.8%

Analyst Consensus

Recommendations

2 Buy · 0 Hold · 0 Sell

Target Price (Mean)

₹487

+21.8% vs CMP

Target Range

₹480 – ₹494

Peer Comparison

Company	P/E	ROE
TATA CONSULTANCY SERV LT	17.3x	45.6%
INFOSYS LIMITED	15.8x	32.0%
HCL TECHNOLOGIES LTD	20.4x	24.6%
WIPRO LTD	14.5x	15.9%

Recent News

1 positive2 mixed3 general

Saatvik Green Energy shares rally 8% as firm secures new order worth ₹190 crore

Upstox, 20 AugOrder win

🟢Potentially positiveOrder wins add to future revenue, though the effect depends on the contract's size against annual sales and on when it is executed.

Saatvik Green Energy (NSEI:SAATVIKGL) Stock Forecast & Analyst Predictions

Simply Wall Street, 23 SeptAnalyst view

🟡Mixed / dependsBroker commentary — an opinion about the price rather than new information about the business.

Suzlon Energy, Waaree Renewables, Satvik To IEX | 5 Mid, Small-Cap Stocks Below Industry Average P/E

Goodreturns, 17 Oct

Saatvik Green Energy shares climb 5% as Motilal Oswal sees up to 23% upside

Moneycontrol.com, 21 Sept

SAATVIK GREEN ENERGY LTD Share Price News: Rs 433.15 Update

Univest, 21 Sept

Buy Suzlon, Saatvik Green; Sell Premier Energies, Emmvee Photovoltaic Power: Ambit Insights | Target price, upside

Livemint, 24 SeptAnalyst view

🟡Mixed / dependsBroker commentary — an opinion about the price rather than new information about the business.

Watch Items

Revenue growth is negative (-44.2%) on the latest reported period — check if this is one-off or a trend.
Cross-check against the company's latest quarterly filing / investor presentation before acting.
RSI is in oversold territory — could mean either a bargain or a stock still falling for good reason. Check the 'why' before assuming reversal.

DalalBaazaar Thesis

🟢Business QualityStrong13.9/20

🟡Financial HealthAdequate11/20

🟢GrowthStrong14.9/20

🟢ProfitabilityStrong11.5/15

🔴ValuationDemanding6.1/15

🔴RiskHigh3.1/10

Good business at a fair price

A sound business at a reasonable valuation. Suitable for a long-term holding, with the valuation and the direction of margins worth watching rather than the business itself. 4 high-severity red flags sit above this conclusion and should be read first.

This thesis breaks if

✓Revenue growth stays above 72% a year95.5% CAGR
✓EBITDA margin holds above 11%12.8%
✗Free cash flow remains positive-₹628 Cr
✓Debt / EBITDA stays below 2x1.6x
✓ROCE stays above 28%30.8%