Are Azure Power (NYSE:AZRE) unsteady basic indicators contributing to the latest dip?


USD 4.93  0.18  3.79%   

Azure Power Global is scheduled to announce its earnings tomorrow. Many investors are getting excited about utilities space, let's analyze if Azure Power Global fundamentals are strong enough to attract traders. We will look into reasons why it is still very possible for the company to generate above-average returns. Azure Power Global current chance of financial distress is under 47 percent. Will shareholders continue to be optimistic, or should we expect a sell-off?
Published over two months ago
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The firm shows a Beta (market volatility) of 2.5861, 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-eight different technical indicators, which can help you to evaluate its performance. Azure Power Global has an expected return of -0.74%. Please be advised to confirm Azure Power Global semi variance, and the relationship between the maximum drawdown and accumulation distribution 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.

Are Azure Power Earnings Expected to grow?

The future earnings power of Azure Power involves the interaction of many company-specific, industry, and economic forces. Earnings estimates embody investors' opinions of Azure Power factors such as sales growth, product demand, competitive industry environment, profit margins, and cost controls. Azure Power stock prices adjust as these expectations change or are proven wrong. The main thing to remember is that equities with high expected earnings growth tend to underperform the market because it is usually difficult to meet the market's high expectations. Companies with low earnings expectations tend to do better than expected. Please use our latest analysis of Azure expected earnings.

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

Institutional investor usually refers to an organization that invests money in Azure Power on behalf of clients or other money managers. Buying and selling of large positions of Azure Power stock by institutional investors can create supply and demand imbalances that result in sudden price moves of Azure Power stock. Let's take a look at how the ownership of Azure is distributed among investors.

Ownership Allocation

Azure Power Global retains a total of 48.33 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. Also note that nearly one million nine hundred thirty-three thousand two hundred invesors are currently shorting Azure Power expressing very little confidence in its future performance.

Retail Investors-3.96

Over 3 percent surge for Azure Power. What does it mean for shareholders?

Latest skewness is at -1.03. 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 Takeaway on Azure Power Investment

Although many other companies under the utilities—renewable industry are still a bit expensive, Azure Power may offer a potential longer-term growth to shareholders. While some shareholders may not share our view we believe that the current risk-reward utility is not appealing enough to do any trading. 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 Rifka Kats do not own shares of Azure Power Global. Please refer to our Terms of Use for any information regarding our disclosure principles.

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