Fujiyama Shares Rise 5% After Solar Plant Clarification Amid DAM Capital Buy Rating

Fujiyama Power Systems shares jumped 5% to hit a day's high of ₹374.45 on BSE on October 22. The upward move followed company clarifications that its planned 1.2 GW domestic content requirement solar cell manufacturing facility in Ratlam, Madhya Pradesh, remains on track. DAM Capital recently initiated coverage on the stock with a BUY rating and a target price of ₹540 per share, which implies an upside of about 45%.

Growth Outlook

DAM Capital expects strong earnings growth driven by manufacturing expansion, an extensive distribution network, and exposure to government rooftop solar programmes. The company operates across 25 states with more than 1,000 distributors, over 1,200 exclusive Shoppes, and approximately 7,900 dealers. Its integrated product portfolio includes inverters, batteries, solar panels, and cells. The brokerage forecasts revenue to rise from ₹26.5 billion in FY26 to ₹66.3 billion in FY28, with EBITDA projected to increase from ₹4.9 billion to ₹12.8 billion over the same period.

Stock Performance

Despite the recent single-day gain, the stock has faced pressure recently, falling 8% in one week, 15% in one month, and 2% in three months. However, it gained 42% over a six-month period. Management confirmed that machinery and equipment for the Ratlam facility are already delivered, with commissioning scheduled for the first quarter of FY28 without foreign technology dependence.

Context

Government rooftop solar initiatives like PM Surya Ghar: Muft Bijli Yojana are driving substantial demand across Indian households. Brokerages frequently issue coverage ratings and price targets to help investors gauge the growth potential of listed companies in expanding sectors like renewable energy.