Saatvik Green Energy shares surge 10% on Q1 results; Stock up 25% in six sessions

Shares of newly listed Saatvik Green Energy Ltd. are locked in a 10% upper circuit on Thursday, October 9, in response to its June quarter results that it reported after market hours on Wednesday. This is the company’s first quarterly result reported after its listing on September 26.This is also the sixth straight day of gains for the stock, during which it has risen 25%.

For the June quarter, Saatvik Green’s revenue more than tripled to ₹915.7 crore from ₹245.9 crore during the same quarter last year.

Its Earnings Before Interest, Tax, Depreciation and Amortisation (EBITDA) increased more than five-fold on a year-on-year basis to ₹176.9 crore. EBITDA margin improved to 19.77% from 16.5%.
However, on a sequential basis, revenue remained flat, EBITDA increased by 17.1%, while margins in the previous quarter were at 16.4%.The company has also launched UDAY series on-grid solar inverters, for residential, commercial and industrial projects, marking a shift from panel manufacturing to complete solar ecosystem solutions.

In an interaction with CNBC-TV18 on Thursday, Saatvik Green Energy’s Managing Director Manik Garg said that the focus remains on growth but also on improving the margin profile. Garg said that margin remaining between the 16% to 17% range will be realistic.

Saatvik Green Energy’s ₹900 crore IPO recently received subscription of 6.57 times, across the three-day period. Subscription was led by institutional investors with the Qualified Institutional Bidder (QIB) portion being subscribed 11 times, while the retail portion was subscribed 2.8 times the total number of shares on offer.

Shares of Saatvik Green Energy are up 10% to ₹551.7. The stock is up 18% from its IPO price of ₹477 per share.