SAHAJ SOLAR IPO Review

SAHAJ SOLAR LIMITED believes that solar technology is the most emerging technology among all renewable energy technologies. Sun is an infinite source of energy for our earth. Sahaj Solar Ltd. (Sahaj Solar) is synonyms to acquire green energy in a natural simple way. They are engaged in three businesses of PV Module manufacturing, providing solar pumping systems and providing EPC Services.

The Company is led by the Promoters, MR. PRAMIT BHARATKUMAR BRAHMBHATT, MRS. VARNA PRAMIT BRAHMBHATT & MR. MANAN BHARATKUMAR BRAHMBHATT, and they have combined experience of around 9 to 10 years in the solar industry.

Financially, Sahaj Solar revenue increased to ₹6,218.78 Lakhs in FY21 to ₹6,728.96 Lakhs in FY23 but revenue jumped to ₹18,580.48 Lakhs and currently increased to ₹20,171.55 Lakhs in FY24. Similarly, EBITDA increased from ₹301.20 Lakhs in FY21 to ₹389.27 Lakhs in FY22 and further increased to ₹1,133.00 Lakhs in FY23 and currently at ₹2,438.14 Lakhs in FY24. The PAT also increased from ₹70.58 Lakhs in FY21 to ₹102.50 Lakhs in FY22 and further increased to ₹634.90 Lakhs in FY23 and currently at ₹1,316.08 Lakhs in FY24. This indicates a steady growth in financial performance.

For the Sahaj Solar IPO, the company is issuing shares at a pre-issue EPS of ₹16.70 and a post-issue EPS of ₹12.17. The pre-issue P/E ratio is 10.77x, while the post-issue P/E ratio is 14.79x against the industry P/E ratio of 45.76x. The company's ROCE for FY24 is 26.47%, and ROE for FY24 is 39.96%. These metrics suggest that the IPO is fairly priced.

The Grey Market Premium (GMP) of Sahaj Solar indicates potential listing gains of 85%-90%. Given the company's financial performance and the valuation of the IPO, we recommend Investors to Apply to the IPO for Listing Gains or Long Term Investment purposes.