Fujiyama Power Systems Share Price Falls 2%; Should You Buy This Solar Stock? Check Motilal Oswal's Ratings

Fujiyama Power Systems Ltd, a solar energy solutions provider specialising in rooftop solar systems, saw its shares decline on Friday, November 13. The stock is in focus as brokerage firm Motilal Oswal has reiterated its bullish outlook on the company following a strong September-quarter performance, highlighting rising rooftop solar demand, distribution network expansion and opportunities in battery energy storage.

Fujiyama Power Systems Share Price Today

Fujiyama Power Systems shares closed at Rs 347.50 on Friday, November 13, down 2.11% on the NSE. The stock's decline comes as investors assess the company's earnings growth, operating margins and future expansion prospects in India's growing rooftop solar market.

Despite the day's fall, Motilal Oswal remains positive on the stock, citing strong volume-led growth and demand visibility. The brokerage expects the company's expanding distribution network and manufacturing capabilities to support its business performance over the coming years.

Should You Buy or Sell Fujiyama Power Stock? Check Motilal Oswal's Recommendation and Target Price for UTLSOLAR

Motilal Oswal has reiterated its Buy rating on Fujiyama Power Systems with a target price of Rs 500. Based on the closing price of Rs 347.50, the target indicates a potential upside of approximately 43.9%.

The brokerage has maintained its FY27 and FY28 earnings estimates, expecting the company to benefit from continued channel expansion, stronger market penetration and rising demand for residential rooftop solar solutions. Its target price is based on 20 times its estimated FY28 earnings per share.

Motilal Oswal expects Fujiyama Power Systems to deliver a compound annual growth rate (CAGR) of 57% in revenue, 57% in EBITDA and 59% in adjusted profit after tax between FY26 and FY28. These projections reflect the brokerage's expectation of sustained business growth over the period.

However, the target price is an estimate, not a guaranteed return. Investors should also consider margin pressure, execution risks and uncertainty surrounding policy changes before making an investment decision.

Fujiyama Power Systems Q2 Results: Revenue More Than Doubles

Fujiyama Power Systems reported strong earnings growth in the second quarter of FY27. Consolidated revenue rose approximately 2.3 times year-on-year to Rs 1,306.8 crore, compared with Motilal Oswal's estimate of Rs 1,000 crore.

EBITDA, or earnings before interest, tax, depreciation and amortisation, increased approximately 2.2 times to Rs 220 crore. Adjusted profit after tax also grew around 2.1 times to Rs 130 crore, exceeding the brokerage's estimate of Rs 110 crore.

The results indicate that the company recorded strong growth in sales and operating earnings during the quarter. Motilal Oswal attributed the performance to robust volume-led demand, supported by the PM Surya Ghar Muft Bijli Yojana, an expanding distribution network and improved after-sales capabilities.

However, profitability faced some pressure. The EBITDA margin stood at 17.1%, compared with 18.1% in the year-ago quarter and 18.9% in the June quarter. Higher sales and distribution expenses, seasonal softness, costs associated with newly commissioned facilities and external procurement of tubular batteries affected margins.

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