Already up 65% YTD! Motilal Oswal sees a further 36% upside in this power stock - Check target price

This implies an upside potential of 36% from the stock's 27 October closing of ₹368.40 on the BSE.Motilal Oswal expects the company to clock a CAGR of 52%, 57%, and 59% in revenue, EBITDA, and adjusted PAT, respectively, during FY26-28.Investment rationaleMotilal Oswal underscored that China has proposed export restrictions on 16th October on advanced solar manufacturing technologies, including tunnel oxide passivated contact (TOPCon), heterojunction technology (HJT) and x-back contact (XBC), as well as thin-wafer,perovskite and tandem technologies.

The curbs are not expected to impact Fujiyama Power Systems, as it has already secured a technology transfer agreement from China.According to the brokerage firm, this supports the development of its 1.2GW TOPCon cell manufacturing facility at Ratlam, Madhya Pradesh. Commercial production at this facility is expected to commence in the first half of FY28.China dominates solar cell manufacturing. It also accounts for nearly 97% of global wafer manufacturing capacity.

Motilal believes that, given surplus capacity and the importance of overseas markets, outright export restrictions on cells and wafers may be less likely."India’s shift toward integrated solar-plus-storage solutions and proposed domestic content requirements for inverters and batteries under the next phase of the PM Surya Ghar Muft Bijli Yojana could benefit Fujiyama Power," said Motilal."The company has installed a 5MW battery energy storage system (BESS) at Dadri and plans an additional 10MW system at Ratlam, supporting its entry into the commercial and industrial storage market by leveraging its existing rooftop solar portfolio and distribution network," Motilal Oswal said.Disclaimer: This article is for educational purposes only and does not constitute investment advice.

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