Shares of Fujiyama Power Systems Limited ended lower on Friday, extending their decline over the past few months. The mid-cap solar stock has been on a corrective trajectory since it touched its 52-week high level in August this year. However, despite the recent weakness, the stock has gained 33% over the past six months.
Fujiyama is expected to deliver strong earnings growth in the second half of the financial year 2026-27 driven by continued channel expansion, deeper penetration across Southern and Northeastern markets, ramp-up of new facilities, according to Motilal Oswal Financial Services which sees nearly 40% upside in valuation.
Fujiyama Power Systems reported a strong quarter in the second quarter of the financial year 2026-27 (FY27) as EBITDA surged 2.2x on an annual basis. Robust volume-led demand, aided by PM Surya Ghar Muft Bijli Yoana (PMSGMBY), expansion of the distribution network supported its business growth in the second quarter.
“We expect Fujiyama to deliver strong earnings growth in 2HFY27 while sustaining margins, driven by continued channel expansion, deeper penetration across Southern and Northeastern markets, ramp-up of new facilities, and strong demand for rooftop solar solutions across both residential on-grid and off-grid segments,” read MOFSL report.
The brokerage maintained a ‘Buy’ rating on the stock with a target price of ₹500 per share. “We maintain our FY27/FY28 EPS estimates and reiterate our BUY rating with a TP of INR500 (premised on 20x FY28E EPS),” read MOFSL report.