Solar stock Fujiyama Power Systems Ltd (UTLSOLAR) jumped as much as 6.2% in Friday’s trade to touch a day’s high of Rs 303.85 per share in early trade. At 12:50 pm, the counter was trading 5% higher at Rs 300.20. With the current levels, the stock is up nearly 53% in 16 trading sessions in April so far. 

Amid this, recently, Motilal Oswal Financial Services (MOFSL) initiated coverage on the stock with a ‘Buy’ rating. The brokerage views the company as an integrated B2C player and solution provider in rooftop solar. 

According to MOFSL, “UTLSOLAR is expanding capacity to tap India’s ~100GW rooftop solar opportunity by FY30.”

MOFSL noted that Fujiyama’s recent commissioning of its 1GW in-house DCR solar cell plant in Dadri gives it a massive competitive edge to capture solar demand. 

“This in-house DCR manufacturing could lift gross margins to ~51% in DCR solar panel, reflecting a broader shift toward domestic solar manufacturing,” MOFSL said.

The brokerage noted that to keep up with the soaring demand, the company plans to pour Rs 300 crore into a new greenfield facility in Ratlam, noting that this will push its total capacity to 3.7GW for solar panels, 3.7GW for inverters, and 3.8GWh for batteries.

“India is shifting from tubular to Li-ion batteries due to their longer life, lower maintenance, and better long-term efficiency. As such, UTLSOLAR plans to expand its Li-ion capacity from 45MWh to 2.5GWh (from FY25) by 1QFY27,” MOFSL said.

Fujiyama Power Systems share price target

Looking ahead, Motilal Oswal expects the company to deliver a stellar 56%, 65%, and 65% compound annual growth rate (CAGR) in revenue, EBITDA, and PAT, respectively, over the FY25 to FY28 period.The brokerage is valuing the stock at 15 times its projected FY28 earnings to arrive at its target price of Rs 340.