Fujiyama Power Systems has emerged as a potential beneficiary of India's expanding rooftop solar market, with DAM Capital initiating coverage on the stock with a BUY rating and a target price of ₹540 per share, implying an upside of around 45%.
The brokerage believes the company's manufacturing expansion, extensive distribution network and exposure to the government's rooftop solar programme could support strong earnings growth over the medium term.
DAM Capital said, “Fujiyama offers a differentiated play within India’s listed solar manufacturing space. Long-term outlook is particularly attractive given the humongous growth runway, complemented by strong competitive moat built on an entrenched distribution network, brand recall, and technical expertise in inverters and batteries.”
Fujiyama Power Systems shares jumped 5% to day's high of ₹374.45 per share on BSE today, October 22, after the company clarified that its planned 1.2 GW domestic content requirement (DCR) solar cell manufacturing facility in Ratlam, Madhya Pradesh, remained on track despite proposed restrictions. The company said machinery and equipment for the facility had already been delivered and it did not expect any material impact on capital expenditure or the commissioning timeline.
Fujiyama Power Systems said the facility was scheduled to be commissioned in the first quarter of FY28 and clarified that it had not announced plans for additional solar cell manufacturing capacity. It added that its operations did not depend on any ongoing foreign technology transfer.