Investment Brief: Motilal Oswal Initiates Coverage on Saatvik Green Energy Ltd.

Rating: BUY | Base Target Price: ₹565 (~26% upside) | Bull Case Target: ₹652 (~45% upside by FY28) Executive Summary Motilal Oswal has initiated coverage on Saatvik Green Energy Ltd. with a structural 'Buy' thesis. The brokerage positions Saatvik as a prime beneficiary of India’s accelerating solar infrastructure pivot, driven by a combination of rapid capacity scale-up, strong capacity utilization, and high-margin backward integration. Capacity Expansion & Backward Integration Roadmap Saatvik is aggressively expanding its manufacturing footprint to capture both horizontal volume growth and vertical margin expansion: Solar Modules: Scaling from 4.8 GW at the end of FY26 to a projected 8.8 GW by FY27. Financial & Operational Outlook (FY26–FY28) Growth Metrics: Motilal Oswal forecasts robust 2-year forward financial metrics, projecting a Compound Annual Growth Rate (CAGR) of 38% in Revenue, 55% in EBITDA, and 44% in Adjusted PAT (APAT). Volume Drivers: Module sales volumes are projected to scale from 3.1 GW (FY26) to 3.8 GW (FY27), reaching 4.9 GW by FY28. Margin Catalysts: Realizations are expected to strengthen as high-margin Domestic Content Requirement (DCR) modules scale to comprise approximately 56% of total sales by FY28. Operational Efficiency: Saatvik has demonstrated best-in-class execution, maintaining a 84% Capacity Utilization Factor (CUF) across FY25 and FY26. Valuation & Peer Comparison Saatvik trades at a highly attractive 6.9x FY28E EV/EBITDA. This represents a sharp discount to peers like Waaree Energies (9.2x) and Premier Energies (10.4x). While the brokerage applies a conservative target multiple of 8x FY28E EV/EBITDA—discounting for the company's smaller initial scale and lack of prior operational track record in cell manufacturing—it notes the current entry point offers significant valuation comfort and an asymmetrical risk-reward profile for long-term investors.