AZRE Intrinsic Value Calculator – Azure Power Global: Don’t Be Fooled by Short-Term Gains, Long-Term Underperformance Likely Ahead

May 10, 2023

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Azure Power Global ($NYSE:AZRE) is a publicly-traded renewable energy solutions provider that has seen its share price rise in the short-term due to a rally in the alternative energy sector. While this growth may seem promising, investors should be cautious and understand that the long-term outlook for the company could be underwhelming. The company designs, builds, owns, operates, and maintains solar projects across the country and is recognized as one of the leading independent solar power producers in the world. Azure Power Global is focused on providing clean, affordable and abundant energy to customers, with a focus on providing sustainable energy solutions for the future. Despite its recognition as a leading solar power provider, Azure Power Global has seen its share price remain relatively flat in recent months as the sector has struggled to gain traction.

However, Azure Power Global has seen its share price rally in recent weeks as the appetite for renewable energy has grown and investors have piled into the sector. While this growth may appear promising, investors should be cautious and understand that the long-term performance of the stock may be underwhelming. The renewable energy sector is still in its infancy and faces a number of challenges such as government policies, competition, and technological advancements. These factors could all lead to long-term underperformance for Azure Power Global despite its short-term gains. In conclusion, investors should be wary of the short-term gains in Azure Power Global’s share price and understand that long-term underperformance is likely ahead. The company’s focus on providing sustainable energy solutions is commendable and should be applauded, however investors must remain aware of the risks associated with investing in such a young and rapidly changing sector.

Stock Price

Azure Power Global (APG) has been a volatile stock in recent months, and Monday was no different. The stock opened at $2.2 and closed at $2.1, representing a decline of 1.9% from the previous closing price of $2.2. Although there may have been some traders who benefited from the day’s movements, investors should not be fooled by these short-term gains. The long-term outlook for APG likely involves underperformance in the market. The company’s performance has been hampered by its lack of innovation, limited product offerings, and failure to keep up with its competitors’ advancements.

As a result, APG is unlikely to show significant growth in the near future. Investors should be wary of any short-term gains that APG may generate, as they are probably unsustainable in the long run. The stock has already shown signs of weakness and is unlikely to outperform its peers in the near future. Therefore, those looking for long-term investment should look elsewhere. Live Quote…

About the Company

  • Industry Classification
  • Key Executives
  • Ownership (Institutional/ Fund Holdings)
  • News Feed
  • Income Snapshot

    Below shows the total revenue, net income and net margin for AZRE. More…

    Total Revenues Net Income Net Margin
    17.58k -3.01k -3.9%
  • Income Statement Reports (Yearly/ Quarterly/ LTM)
  • Income Supplement
  • Growth Performance
  • Cash Flow Snapshot

    Below shows the cash from operations, investing and financing for AZRE. More…

    Operations Investing Financing
    5.5k -28.87k 23.85k
  • Cash Flow Statement (Yearly/ Quarterly/ LTM)
  • Cash Flow Supplement
  • Balance Sheet Snapshot

    Below shows the total assets, liabilities and book value per share for AZRE. More…

    Total Assets Total Liabilities Book Value Per Share
    166.11k 142.33k 487.66
  • Balance Sheet (Yearly/ Quarterly)
  • Balance Sheet Supplement
  • Key Ratios Snapshot

    Some of the financial key ratios for AZRE are shown below. More…

    3Y Rev Growth 3Y Operating Profit Growth Operating Margin
    23.5% 31.7% 47.0%
    FCF Margin ROE ROA
    -134.1% 21.6% 3.1%
  • Income Statement Ratios
  • Balance Sheet Ratios
  • Cash Flow Ratios
  • Valuation Ratios
  • Other Ratios
  • Other Supplementary Items
  • Analysis – AZRE Intrinsic Value Calculator

    GoodWhale has analyzed AZURE POWER GLOBAL’s fundamentals and found that the intrinsic value of the share is around $15.5. This valuation was calculated using GoodWhale’s proprietary Valuation Line, which takes into account a variety of factors such as the company’s past performance and potential future growth. Currently, AZURE POWER GLOBAL shares are traded at $2.1, which represents an 86.4% discount to its intrinsic value. This makes it an attractive investment opportunity for those looking to capitalize on undervalued stocks. We would advise investors to conduct their own research before making any decisions, but this could be an opportunity to gain a substantial return on investment. More…

  • Risk Rating Analysis
  • Star Chart Analysis
  • Valuation Analysis




  • Peers

    With each company striving to be the leader in the solar energy sector, the competition between them is fierce in order to provide innovative and cost-effective solutions to customers.

    – EAM Solar ASA ($LTS:0QDW)

    EAM Solar ASA is a Norwegian solar energy company that develops, finances, builds, and operates solar power plants. The company has a market cap of 33.58M as of 2023 and a return on equity of -17.72%. The market cap of EAM Solar ASA reflects the total value of the company’s outstanding shares. A negative return on equity indicates that the company is not generating a profit from its operations. This is likely due to the large upfront costs associated with developing and constructing solar power plants, which can take several years to recoup.

    – Solaria Energia y Medio Ambiente SA ($BER:AOR)

    Solaria Energia y Medio Ambiente SA is a Spanish renewable energy and environmental services provider that focuses on the development, operation, and maintenance of solar projects. As of 2023, the company has a market cap of 2.24 billion and a Return on Equity of 22.67%. This indicates that the company is doing well and investors are confident in it’s financial performance. The company has achieved success due to its commitment to sustainability and its ability to deliver high-quality services to its customers. With the increasing demand for renewable energy and the growing importance of environmental protection, Solaria Energia y Medio Ambiente SA is well positioned to take advantage of future opportunities.

    – KPI Green Energy Ltd ($BSE:542323)

    KPI Green Energy Ltd is a leading energy provider which specializes in renewable energy solutions. With a market cap of 16.31B as of 2023, KPI Green Energy Ltd has proven itself to be a strong and reliable company in the energy sector. Its high Return on Equity of 50.41% indicates that the company is able to effectively generate profits from its investments and operations, making it an attractive option for investors. KPI Green Energy Ltd has established itself as a leader in renewable energy solutions, and continues to be a major player in the energy sector.

    Summary

    Azure Power Global is a renewable energy company that specializes in the construction and operation of solar power plants in India. Analysts advise investing in Azure Power Global with caution as the market may experience a medium-term rally but could eventually lead to long-term underperformance. It is recommended that investors do their own research and assess the risks associated before investing in the stock. They should also consider the current market conditions and any changes in the political and economic environment that may affect the company’s performance.

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