In its initiation report, Motilal Oswal highlighted the company’s solar arm, UTLSOLAR, as a compelling integrated B2C play positioned to capitalise on India’s rapidly expanding rooftop solar market. With the country targeting nearly 100GW of rooftop solar capacity by FY30, UTLSOLAR is ramping up aggressively, backed by a planned Rs 3 billion capex to scale its manufacturing footprint across panels, inverters, and batteries at its Ratlam facility. This expansion will boost capacities to 3.7GW (panels), 3.7GW (inverters), and 3.8GWh (batteries).
A key strategic move strengthening the company’s growth narrative is its backward integration into solar cell manufacturing. In January 2026, UTLSOLAR commissioned a 1GW domestic content requirement (DCR) cell facility, delivering robust gross margins of around 51%. This positions the company to directly benefit from policy tailwinds.
One such catalyst is the government’s flagship PM Surya Ghar Muft Bijli Yojana, which aims to install rooftop solar systems in 10 million households by FY27. So far, about 2.9 million homes, equivalent to ~10.4GW capacity, have been covered, leaving a significant untapped opportunity of ~7.1 million installations (~26GW potential). Since the scheme mandates the use of DCR-compliant components, UTLSOLAR’s in-house manufacturing capabilities give it a clear competitive edge.
Motilal Oswal expects the company to deliver strong financial performance, projecting a robust CAGR of 56% in revenue and 65% each in EBITDA and PAT over FY25–28. Riding on policy support and capacity expansion, the brokerage values the stock at 15x FY28 estimated earnings, reinforcing its optimistic outlook.
With structural demand drivers, policy alignment, and expanding capacity, Fujiyama Power Systems appears to be plugging directly into India’s solar growth story.
From a technical standpoint, data from Trendlyne indicates that Fujiyama Power Systems is flashing overbought signals. Its 14-day Relative Strength Index (RSI) stands at 78.5, well above the 70 mark typically associated with overbought conditions, suggesting the stock could be due for a near-term pullback.That said, the broader trend remains firmly positive. The stock is currently trading above all six of its key simple moving averages (SMAs), reflecting strong bullish momentum and underlying strength in price action.
(Disclaimer: The recommendations, suggestions, views, and opinions given by the experts are their own. These do not represent the views of The Economic Times.)