Azure Power (NYSE:AZRE) is to drop even more in December


USD 5.37  0.34  5.95%   

The fundamental objective of this short story is to break down our forecasting of Azure for shareholders. We will try to forecast Azure Power outlook for December.
Published few days ago
View all stories for Azure Power | View All Stories
The company has a beta of 2.4267. Let's try to break down what Azure's beta means in this case. As returns on the market increase, Azure Power returns are expected to increase less than the market. However, during the bear market, the loss on holding Azure Power will be expected to be smaller as well. The beta indicator helps investors understand whether Azure Power moves in the same direction as the rest of the market, and how volatile (i.e., risky) it is compared to the market (i.e., selected benchmark). In other words, if Azure deviates very little from the market, it does not add much risk to the portfolio, but it also doesn't increase the expected returns.
There are currently many different techniques concerning forecasting the market as a whole as well as predicting future values of individual securities such as Azure Power Global. Regardless of method or technology, to accurately forecast the stock or bond market is more a matter of luck rather than a particular technique. Nevertheless, trying to predict the stock market accurately is still an essential part of the overall investment decision process. Using different forecasting techniques and comparing the results might improve your chances of accuracy even though unexpected events may often change the market sentiment and impact your forecasting results.

Predictive Modules for Azure Power

Sophisticated investors, who have witnessed many market ups and downs, frequently view the market will even out over time. This tendency of Azure Power's price to converge to an average value over time is called mean reversion. However, historically, high market prices usually discourage investors that believe in mean reversion to invest, while low prices are viewed as an opportunity to buy. Please use the tools below to analyze the current value of Azure Power in the context of predictive analytics.
Please note, it is not enough to conduct a financial or market analysis of a single entity such as Azure Power. Your research has to be compared to or analyzed against Azure Power's peers to derive any actionable benefits. When done correctly, Azure Power's competitive analysis will give you plenty of quantitative and qualitative data to validate your investment decisions or develop an entirely new strategy towards taking a position in Azure Power Global.

How important is Azure Power's Liquidity

Azure Power financial leverage refers to using borrowed capital as a funding source to finance Azure Power Global ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Azure Power financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Please check the breakdown between Azure Power's total debt and its cash.

How does Azure utilize its cash?

To perform a cash flow analysis of Azure Power, investors first need to understand how to read the cash flow statement. A cash flow statement shows the amount of cash Azure Power is receiving and how much cash it distributes out in a given period. The Azure Power cash flow statement breaks down these inflows and outflows into different buckets, including operating activities, investing activities, and financing activities.

A Deeper Perspective

The big decline in price over the last few months for Azure Power Global could raise concerns from shareholders as the firm is trading at a share price of 5.67 on 283,100 in volume. The company management teams failed to add value to investors and position the firm supply of money to exploit market volatility in October. However, diversifying your holdings with Azure Power Global or similar stocks can still protect your portfolios during high-volatility market scenarios. The stock standard deviation of daily returns for 90 days investing horizon is currently 9.79. The very high volatility is mostly attributed to the latest market swings and not very good earnings reports from some of the Azure Power partners.

Can Azure Power build up on the latest surge?

Latest value at risk indicator falls down to -10.75. Possible price growth? Azure Power Global is displaying above-average volatility over the selected time horizon. Investors should scrutinize Azure Power Global independently to ensure intended market timing strategies are aligned with expectations about Azure Power volatility. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Azure Power's stock risk against market volatility during both bullish and bearish trends. The higher level of volatility that comes with bear markets can directly impact Azure Power's stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different stocks as prices fall.

Our Bottom Line On Azure Power Global

Although some companies in the utilities—renewable industry are either recovering or due for a correction, Azure may not be as strong as the others in terms of longer-term growth potentials. The inconsistency in the assessment between current Azure valuation and our trade advice on Azure Power is due to the recent market swings and your selection of investing horizon. Please use our equity advice module to run different scenarios to ensure your current risk level and investment horizon are fully reflective of your current investing preferences in regards to Azure Power.

Editorial Staff

This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Ellen Johnson do not own shares of Azure Power Global. Please refer to our Terms of Use for any information regarding our disclosure principles.

Would you like to provide feedback on the content of this article?

You can get in touch with us directly or send us a quick note via email to