This Low PE, High ROCE Solar Stock Falls 7%: Saatvik Green Energy Signs MoU with Odisha Government for 3.6 GW Solar Cell Facility

On Monday, Indian equity benchmark indices traded lower, with the benchmark Nifty 50 index falling 130.05 points, or 0.53 per cent, to 24,235.95. Amid the market movement, Saatvik Green Energy share price declined 7.11 per cent to Rs 397.00. The stock remained in focus after the company announced that its material subsidiary, Saatvik Solar Industries Private Ltd, had signed a Memorandum of Understanding (MoU) with the Industrial Promotion and Investment Corporation of Odisha Limited (IPICOL), Government of Odisha, for setting up a 3.6 GW solar cell manufacturing facility at Gopalpur in Odisha's Ganjam district.

Saatvik Solar Signs MoU for 3.6 GW Phase II Facility

Under the proposed development, Saatvik Solar plans to establish a 3.6 GW solar cell manufacturing facility at Gopalpur. The company said the facility is expected to create employment opportunities and contribute to the development of Odisha's renewable energy manufacturing ecosystem. The proposed facility forms part of the company's broader manufacturing development at Gopalpur.

The proposed Phase II expansion will add to the company's existing Phase I development at Gopalpur, which comprises 2.4 GW of solar cell manufacturing capacity and 4 GW of module manufacturing capacity. The company said Phase I has achieved key Construction and installation milestones and is progressing towards commissioning.

Phase I Facility Moves Towards Commissioning

Saatvik Solar's Phase I facility at Gopalpur has completed major construction and infrastructure works, while equipment installation and testing activities are progressing. The company has also completed key power infrastructure milestones, with its dedicated 220 kV substation ready for charging. Manufacturing lines are currently undergoing final installation, testing, validation and process-readiness activities.

The company said the solar cell line is on track for ramp-up shortly, while the ALMM-II inspection is planned for September, taking the facility closer to full-scale commercialisation.
Also Read - Patanjali Foods Reports Q1 FY27 Results: Revenue Climbs 29% YoY, Profit Surges 86%; Check Details

Phase II Commercial Production Targeted for FY28

Alongside the progress of Phase I, Saatvik Solar is advancing plans for the proposed 3.6 GW Phase II cell capacity expansion. According to the company, the expansion is intended to support growing demand for domestically manufactured solar products and deepen its presence across the solar value chain. Phase II is targeted for commercial production by FY28.

The company said the phased development at Gopalpur is aimed at building an integrated and technologically advanced solar manufacturing ecosystem, with a focus on scale, operational excellence, quality and supply-chain resilience.

About Saatvik Green Energy

Saatvik Green Energy is a solar photovoltaic module manufacturer with a presence across utility-scale, commercial and industrial, EPC and distributed solar segments. The company currently operates a 4.8 GW module manufacturing facility in Ambala, Haryana, while it is developing an integrated manufacturing facility in Odisha with 4 GW of module capacity and 6 GW of solar cell capacity.

Saatvik Green Energy shares were trading at Rs 397.00, down 7.11 per cent, while the Nifty 50 index declined 0.53 per cent to 24,235.95. The proposed 3.6 GW Phase II expansion, progress of the Phase I facility towards commissioning and the planned ALMM-II inspection in September remain key developments to track. Further, the company is currently trading at a PE ratio of 20.3, while its Return on Capital Employed (ROCE) stands at 32.9 per cent, resulting a strong return generated on the capital employed in the business.

Share your thoughts in the comments below.
Disclaimer: The article is for informational purposes only and not investment advice.