Fujiyama Power Systems Share Gains Nearly 3%; 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 rise nearly 3% on Tuesday, October 27. The small-cap solar stock is in focus as brokerage firm Motilal Oswal has shared its outlook on the company, highlighting its planned expansion into advanced solar cell manufacturing and battery energy storage systems.

Fujiyama Power Systems Share Price Today

Fujiyama Power Systems shares advanced 2.68% to Rs 373.65 at 3:30 pm on the NSE. The stock's gains come as investors assess the company's growth prospects in India's expanding rooftop solar market and its plans to strengthen manufacturing capabilities. Its proposed expansion into solar cell production and energy storage could create additional growth opportunities over the coming years.

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

Motilal Oswal has reiterated its Buy rating on Fujiyama Power Systems with a target price of Rs 500. From the current price of Rs 373.65, the target indicates a potential upside of approximately 33.8%.

The brokerage expects the company to deliver a compound annual growth rate (CAGR) of 52% in revenue, 57% in EBITDA and 59% in adjusted profit after tax between FY26 and FY28. In its report, Motilal Oswal said, "We expect UTLSOLAR to clock a CAGR of 52%/57%/59% in revenue/EBITDA/ adj PAT during FY26-28. We reiterate our BUY rating with a TP of INR500, based on 20x FY28E EPS."

The target price is based on 20 times the brokerage's estimated FY28 earnings per share. These projections depend on the company's ability to execute its expansion plans and deliver the anticipated improvement in profitability.

TOPCon Solar Cell Manufacturing Expansion in Focus

A key growth driver is Fujiyama's planned 1.2GW TOPCon solar cell manufacturing facility at Ratlam, Madhya Pradesh. TOPCon is an advanced solar cell technology designed to improve solar panel efficiency. Commercial production at the facility is expected to begin in the first half of FY28.

The project forms part of the company's backward integration strategy, which involves manufacturing more components in-house rather than relying entirely on external suppliers. This could strengthen domestic sourcing, improve cost control and support the production of solar cells that meet domestic content requirements.

Motilal Oswal believes China's proposed restrictions on the overseas transfer of certain advanced solar manufacturing technologies are unlikely to disrupt the project, as Fujiyama has already secured a technology transfer agreement from China.

Battery Energy Storage Business Adds to Growth Prospects

The brokerage also sees opportunities in Fujiyama's battery energy storage system (BESS) business. The company has installed a 5MW storage system at Dadri and plans an additional 10MW system at Ratlam.

Battery storage allows electricity to be stored for use when required and can complement solar installations for commercial and industrial customers. Fujiyama could use its existing rooftop solar portfolio and distribution network to expand into integrated solar-plus-storage solutions.

Motilal Oswal also identifies the PM Surya Ghar Muft Bijli Yojana as a potential demand driver, alongside proposed domestic content requirements for inverters and batteries under the scheme's next phase.

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