Fujiyama Power Systems Limited

Technology — Solar · NSE

₹395.50−₹6.90 (−1.71%)

DalalBaazaar Score

67 / 100

🟢 Good

Verdict

NEUTRAL

Risk

Moderate

Driven by negative free cash flow, small-cap size, which brings sharper price swings, falling profits.

In simple words: Strong business and financial position, though profits are falling even as sales grow. Cash generation is currently the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 6:58 pm

Understanding the Business

Company site ↗

The 60-second version of Fujiyama Power Systems Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

Fujiyama Power Systems Limited manufactures and sells roof-top solar products and solutions under the UTL Solar and Fujiyama Solar brands in India and internationally.

IndustrySolar

SectorTechnology

Employees2,278

Annual revenue₹2,647 Cr

How does it make money?

Turns over ₹2,647 Cr a year. Of every ₹100 of sales, about ₹11 reaches shareholders as profit, with ₹18 left at the operating level before interest, tax and depreciation. Each of its 2,278 employees supports ₹1.16 Cr of revenue a year, the signature of a capital- or asset-led business.

Revenue / employee₹1.16 Cr

Who are its competitors?

The closest listed comparisons in its industry are TATA CONSULTANCY SERV LT, INFOSYS LIMITED, HCL TECHNOLOGIES LTD, WIPRO LTD. These are the companies its valuation and returns are measured against elsewhere in this report.

Compared side by side in Peers ↓

What is its competitive advantage?The numbers suggest a real one

ROCE has stayed above 15% in every year available and stands at 28.9%. Returns that high normally get competed away; when they persist, something is protecting them, and its ROE of 23.9% against a peer median of 32.0% is consistent with that. What that something is — brand, scale, switching costs, regulation — the accounts cannot tell you.

Peer median ROE32.0%

What is the outlook?

2 analysts covering the stock expect revenue to grow about 32.3% and earnings to grow about 51.2% in the year to 2028. These are estimates by people who follow the company, not a forecast for the wider industry.

Est. revenue growth+32.3%

Est. earnings growth+51.2%

Analysts2

What has been driving growth?

Sales and margins have both contributed to where profit is now. Over 3 years revenue moved +299% while net margin moved +212% relative to itself. What this cannot tell you is which products, customers or geographies did the work — that lives in the segment disclosures of the annual report.

Revenue effect+299%

Margin effect+212%

DalalBaazaar Score

67/ 100

Good

Weighted across six categories. Every point is explained below.

✗ Small Cap: thinner liquidity and sharper drawdowns are normal
✗ Profits have swung sharply from year to year — earnings are hard to forecast
✗ Negative free cash flow means dependence on external funding

Quality vs. Valuation

Company Quality

78/ 100

Good

How good the business is, ignoring the share price entirely.

Valuation

42/ 100

Expensive

What you are being asked to pay, ignoring how good the business is.

A good business, but the price already reflects that. The quality is real; the question is whether you are overpaying for it today.

Historical Valuation

Current P/E

40.1x

1.1Y Median

41.0x

13 monthly readings · mean 47.7x · range 36.8x–74.6x

Sector Median

16.5x

median of 4 sector peers

🟡Currently trading close to its 1.1y median of 41.0x — the market is paying about what it usually pays for this company.

⚠️Against its sector it trades 142% above the peer median of 16.5x.

vs. its own history

Fair

41.0x median over 13 months · -2%

vs. sector peers

Expensive

16.5x median of 4 peers · +142%

vs. generic bands

Expensive

Above 35x

EV/EBITDA

25.7x

PEG

0.30

What's Good / What's Bad

🟢 What's Going Well5

Margins are improving
EBITDA margin is up from 7.5% to 18.4% over 3 years.
Return on equity is rising
ROE has improved from 12.6% to 23.9%.
Return on capital is rising
ROCE has improved from 16.0% to 28.9%.
High return on capital employed
ROCE of 28.9% is the mark of a business that converts capital into profit efficiently.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention0

Nothing stands out as clearly deteriorating on the years of data available.

Red Flags

5 items require attention · 4 high · 1 watch

🔴Debt has risen sharplyFinancial
Total debt is up 141% over 3 years, from ₹215 Cr to ₹520 Cr.
🔴Profit up while operating cash flow fallsFinancial
Reported profit rose but cash generated by operations declined — worth checking whether earnings are being supported by non-cash items or working capital.
🔴Receivables growing faster than salesFinancial
Receivables up 392% against revenue up 299% — sales are being booked faster than they are collected.
🔴Inventory building faster than salesFinancial
Inventory up 386% against revenue up 299% — stock may not be moving.
🟡Free cash flow is negativeFinancial
Free cash flow was -₹516 Cr in the latest year.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Capital compounds at a high rate
ROCE of 28.9% means each rupee reinvested earns well above what capital costs. If the company can keep deploying at this rate, growth creates value rather than just consuming cash.
Margin expansion has further to run
EBITDA margin has risen from 7.5% to 18.4%. If that holds, profit compounds faster than sales and today's multiple looks cheaper in hindsight than it does now.
Earnings have proved durable
Profitable in every one of the last 4 reported years. Consistency lowers the risk that any single bad year is structural rather than cyclical.

🔴 Bear CaseWhat could go wrong?

Sales are being booked faster than collected
Receivables are up 392% against revenue up 299%. If customers keep taking longer to pay, reported profit will not turn into cash — and write-offs follow if some never do.
A premium to the sector to defend
It trades 142% above the peer median. That premium needs a reason that persists, or it closes.
Earnings are hard to forecast
Profit has swung sharply from year to year, so any single year — good or bad — is a weak guide to the next. Cyclical earnings deserve lower multiples for that reason.
Size brings its own risk
Small Cap businesses are thinly traded, so exits are harder in a falling market and single events move the price more than they would for a larger company.
Several serious flags at once
4 high-severity checks triggered. Individually each has an explanation; together they raise the chance that something structural is wrong rather than a one-off.

🟡 Key Things to WatchMeasurable tripwires, set against where this company stands today

1Revenue growth stays above 44% a year✓ 58.7% CAGR
Latest reported year was 125.3%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 16%✓ 18.4%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Free cash flow remains positive✗ -₹516 Cr
Profit that never becomes cash eventually stops being profit.
4Debt / EBITDA stays below 2x✓ 1.1x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
5ROCE stays above 26%✓ 28.9%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

7 / 12 checks passed

✓ Strong return on equity (ROE ≥ 15%)
✓ Strong return on capital employed (ROCE ≥ 15%)
✗ Healthy net margin (≥ 10%)
✗ Generates positive free cash flow
✓ Manageable leverage (Debt/Equity < 1.0)
✓ Adequate short-term liquidity (Current Ratio ≥ 1.0)
✓ Revenue growing year-over-year
✗ Profit growing year-over-year
✗ Not trading at an extreme valuation (P/E < 40x)
✓ Not buying right at the 52-week high
✓ Analyst consensus isn't majority-sell
✗ Short-term technical trend isn't bearish

Price history

Quick Metrics

5 good · 2 neutral · 4 weak

Market Cap

₹12,138 Cr

Small Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

40.1x

Expensive

Expensive — verify against sector peers

P/B Ratio

9.22x

Rich

Steep premium to book — needs high, durable returns to justify

EPS (TTM)

₹9.86

Profitable

Profitable on a per-share basis

ROE

23.9%

Strong

Strong capital efficiency

ROCE

28.9%

Strong

Earns comfortably above its likely cost of capital

Debt/Equity

0.41x

Low

Conservative leverage

Revenue Growth (YoY)

125.3%

Healthy

Healthy top-line growth

Profit Growth (YoY)

-21.7%

Falling

Profits are shrinking

Dividend Yield

None

No dividend yield reported — usually means no payout, but verify if one was recently initiated

Free Cash Flow

-₹516 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

P/E (Forward)

15.7x

Improving

Below the trailing multiple — the street expects earnings to grow into the price

Operating Margin

17.1%

Good

Healthy core-business profitability

Net Margin

8.6%

Average

Average bottom-line conversion

Current Ratio

1.72

Comfortable

Healthy short-term liquidity

52W Range Position

69%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

415.2 / 427.0

Bearish alignment (short < long)

Price vs SMA 200

Above

Long-term uptrend

RSI (14)

39.5

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹663 Cr	₹923 Cr	₹1,539 Cr	₹2,647 Cr	+58.7%
EBITDA	₹50 Cr	₹96 Cr	₹255 Cr	₹487 Cr	+114.3%
EBITDA Margin	7.5%	10.4%	16.5%	18.4%	—
PAT (Net Profit)	₹24 Cr	₹45 Cr	₹156 Cr	₹304 Cr	+132.0%
EPS	₹0.8	₹1.48	₹5.1	₹10.21	+134.2%
ROE	12.6%	18.9%	39.4%	23.9%	—
ROCE	16.0%	25.7%	41.8%	28.9%	—
Total Debt	₹215 Cr	₹205 Cr	₹395 Cr	₹520 Cr	+34.1%
Free Cash Flow	-₹60 Cr	₹37 Cr	-₹101 Cr	-₹516 Cr	—

🟢 Revenue has grown at 58.7% a year over 3 years.

🟢 EBITDA has grown at 114.3% a year over 3 years.

🟢 EBITDA Margin has risen from 7.5% to 18.4% over 3 years (+10.9 pts).

🟢 PAT (Net Profit) has grown at 132.0% a year over 3 years.

🟢 EPS has grown at 134.2% a year over 3 years.

🟢 ROE has risen from 12.6% to 23.9% over 3 years (+11.3 pts).

🟢 ROCE has risen from 16.0% to 28.9% over 3 years (+12.9 pts).

🔴 Total Debt has grown at 34.1% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹2,344 Cr

Total Liabilities

₹1,070 Cr

Cash & Equivalents

₹139 Cr

Operating Cash Flow

-₹3 Cr

Capex

-₹513 Cr

Shareholding (proxy)

Institutional Holding

3.2%

Insider Holding

87.7%

Analyst Consensus

Recommendations

2 Buy · 0 Hold · 0 Sell

Target Price (Mean)

₹528

+33.5% vs CMP

Target Range

₹496 – ₹560

Peer Comparison

Company	P/E	ROE
TATA CONSULTANCY SERV LT	17.3x	45.6%
INFOSYS LIMITED	15.8x	32.0%
HCL TECHNOLOGIES LTD	20.4x	24.6%
WIPRO LTD	14.5x	15.9%

Recent News

1 mixed5 general

Fujiyama Power Systems Board Approves ₹1,200-Crore QIP Fundraise And Allocates 4.12 Lakh ESOP Shares

Sahi, 15 Oct

Fujiyama Power Systems hits record high, stock zooms 153% from March low

Business Standard, 14 Aug

Fujiyama Power Systems Ltd | Stock Share Price Live

MarketSmith India, 30 Apr

Fujiyama Power Systems Ltd Peer Comparison – Compare with Others

Value Research, 30 Aug

Fujiyama Power approves ₹1,200 crore QIP to boost public shareholding

scanx.trade, 15 Oct

Newly-listed stock Fujiyama Power Systems jumps 5%, hits record high after Q1 results 2026

Livemint, 14 AugResults

🟡Mixed / dependsA results event. The figures on this page update once the new statements reach the data feed, which usually lags the announcement.

Watch Items

Cross-check against the company's latest quarterly filing / investor presentation before acting.

DalalBaazaar Thesis

StrongBusiness Quality · Financial Health · Growth · Profitability

WeakValuation · Risk

Points for each in the Score ↑

Good business, demanding price

The quality is real and the price already reflects it. Buying here is a bet that the business keeps compounding for long enough to grow into the multiple — which good businesses often do, but it removes the margin for error that a lower price would have given you. 4 high-severity red flags sit above this conclusion and should be read first.

1 of 5 tripwires tripped — Free cash flow remains positive · see Key things to watch ↑