The firm shows a Beta (market volatility) of 1.4158, which signifies a somewhat significant risk relative to the market. Let's try to break down what Azure's beta means in this case. As the market goes up, the company is expected to outperform it. However, if the market returns are negative, Azure Power will likely underperform. Even though it is essential to pay attention to
Azure Power Global historical returns, it is always good to be careful when utilizing equity current trending patterns. Our philosophy towards foreseeing any stock's
future performance is to check both, its past performance charts as well as the business as a whole, including all available
technical indicators. Azure Power Global exposes twenty-one different technical indicators, which can help you to evaluate its performance.
Azure Power Global has an expected return of -0.14%. Please be advised to confirm Azure Power Global
variance,
maximum drawdown, as well as the
relationship between the Maximum Drawdown and
semi variance to decide if
Azure Power Global performance from the past will be repeated at some point in the near future.
Typically, a company's
financial statements are the reports that show the
financial position of the company. There are three main documents that fall into the category of financial statements. These documents include Azure Power income statement, its balance sheet, and the statement of cash flows. Potential Azure Power investors and stakeholders use financial statements to determine how well the company is positioned to perform in the future. Although Azure Power investors may use each financial statement separately, they are all related. The changes in Azure Power's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on Azure Power's income statement, which results in the company's gains or losses. Cash flows can provide more information regarding cash listed on a balance sheet, but not equivalent to net income shown on the income statement. Please read more on our
technical analysis and
fundamental analysis pages.
The goal of Azure Power
fundamental analysis is to do accurate financial forecasts. There are several possible objectives to fundamental analysis, such as projecting of Azure Power performance into the future periods or doing a reasonable stock valuation. The intrinsic value of Azure Power shares is the value that is considered the true value of the share. If
the intrinsic value of Azure is higher than its market price, buying is generally recommended. If it is equal to the market price, it is recommended to hold; and if it is less than the market price, then one should sell all shares Azure Power. Please read more on our
fundamental analysis page.
Watch out for price decline
Please consider monitoring Azure Power on a daily basis if you are holding a position in it. Azure Power is trading at a penny-stock level, and the possibility of delisting is much higher compared to other delisted stocks. However, just because the stock is trading under one dollar, does not mean it will be marked for deletion.
Most exchanges require public instruments, such as Azure Power stock to be traded above the $1 level to remain listed. If Azure Power stock price falls below $1 for 30 consecutive trading days, the exchange can delist it. Once the company reaches this point, they will be sent an initial price violation notice directly from an exchange.
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. Financial leverage can amplify the potential profits to Azure Power's owners, but it also increases the potential losses and risk of financial distress, including bankruptcy, if the firm cannot cover its debt costs. The degree of Azure Power's financial leverage can be measured in several ways, including by ratios such as the debt-to-equity ratio (total debt / total equity), equity multiplier (total assets / total equity), or the debt ratio (total debt / total assets). Please check the
breakdown between Azure Power's total debt and its cash.
A Deeper Perspective
Many companies such as Azure Power have both institutions investors and insiders sharing the ownership. Retail investors typically buy and sell stocks in round lots of 100 shares or more. Other other hand institutional investors are known to buy and sell in block trades of 10,000 shares or more. Let's take a look at how the ownership of Azure is distributed among investors.
Ownership Allocation
Azure Power Global retains a total of 64.16 Million outstanding shares. The majority of Azure Power Global
outstanding shares are owned by
other corporate entities. These outside corporations are usually referred to as non-private investors looking to acquire positions in Azure Power Global to benefit from reduced commissions. Consequently, institutional investors are subject to a different set of regulations than regular investors in Azure Power. Please pay attention to any change in the institutional holdings of Azure Power Global as this could imply that something significant has changed or about to change at the company. Remember, it does not matter who owns the company or if the company is currently
losing money. If the true value of the company is more than the market pays for it currently, you can still have a good investment opportunity.
| Retail Investors6.08% | Institutions93.92% |
| Retail Investors | 6.08 |
| Insiders | 0.0 |
| Institutions | 93.92 |
Is Azure Power getting wobbly?
Latest Risk Adjusted Performance is up to -0.04. Price may dip again. Azure Power Global exhibits very low volatility with skewness of 0.31 and kurtosis of 0.4. However, we advise investors to further study Azure Power Global technical indicators to ensure that all market info is available and is reliable. 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 Conclusion on Azure Power
Although other 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. To sum up, as of the 15th of January 2023, our analysis shows that Azure Power responds to the market. The firm is
undervalued and projects
average chance of distress for the next 2 years. Our concluding 90 days buy-or-sell advice on the firm is
Cautious Hold.
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Ellen Johnson is a Member of Macroaxis Editorial Board. Ellen covers public companies in North America, focusing primarily on valuation and volatility. Six years of experience in predictive investment analytics and risk management.
View Profile 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
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