Fujiyama Power Systems saw its shares rise by 6.54% to ₹276.27 in Thursday’s trading session, following a 'Buy' rating from Motilal Oswal, which set a target price of ₹340. The brokerage emphasized the potential of the company's solar arm, UTLSOLAR, which is poised to capitalize on India's burgeoning rooftop solar market. With a government target of nearly 100GW of rooftop solar capacity by FY30, UTLSOLAR is ramping up its operations with a planned ₹3 billion capital expenditure to enhance its manufacturing capabilities for panels, inverters, and batteries at its Ratlam facility. This expansion will increase capacities to 3.7GW for panels and inverters, and 3.8GWh for batteries.

A significant strategic advantage for Fujiyama is its backward integration into solar cell manufacturing, with a 1GW domestic content requirement (DCR) cell facility commissioned in January 2026, yielding gross margins of around 51%. The government's PM Surya Ghar Muft Bijli Yojana, aimed at installing rooftop solar systems in 10 million households by FY27, further supports this growth. Currently, 2.9 million homes have been equipped, leaving a substantial opportunity for 7.1 million installations.

Motilal Oswal forecasts a robust financial outlook for Fujiyama, projecting a 56% CAGR in revenue and 65% in both EBITDA and PAT from FY25 to FY28, bolstered by policy support and capacity expansion. Despite technical indicators suggesting the stock may be overbought, the overall trend remains positive, with the stock trading above all key moving averages.