Azure Power Global Limited

Azure Power Global Limited (OTC: AZREF) is an India-based independent sustainable energy solutions provider and renewable power producer. The Company is engaged in renewable energy project development and operation. The Company builds and operates solar, wind, and hybrid projects across India, which supply renewable energy to government utilities, both in the state and the center, as well as to independent industrial and commercial customers.

Recent Business and Financial Updates

• Delisting from NYSE: In November 2023, the New York Stock Exchange announced proceedings to delist Azure Power’s equity shares, effective November 13, 2023. This delisting, likely due to regulatory, financial, or compliance issues, shifted the stock to the OTC Markets, which often results in lower liquidity, reduced investor confidence, and a drop in share price.
• Azure Power Global Limited (AZREF) Financial Performance Overview: Azure Power Global Limited (AZREF) showcased robust revenue growth, rising from INR 4,472 million in FY2021 to INR 6,229 million in FY2022 (a 39.3% increase), and improved EBITDA from INR 3,971 million to INR 5,872 million, with margins holding steady at 89% and 94%, respectively, highlighting strong operational performance in India’s renewable energy sector. Nevertheless, the company continues to face profitability challenges, as profit after tax remained negative, improving from a loss of INR 1,847 million in FY2021 to INR 1,515 million in FY2022. Financial strain eased somewhat with RG Borrowings decreasing from INR 25,413 million to INR 16,965 million, while total assets grew from INR 39,076 million to INR 43,852 million, though property, plant, and equipment declined from INR 34,255 million to INR 30,325 million, and cash & cash equivalents fell from INR 1,784 million to INR 1,586 million, reflecting a mixed asset position as of February 26, 2025.
• High Volatility and Risk: AZREF has an extremely high beta coefficient of 14.86, indicating significant volatility compared to the market. This volatility, combined with the stock’s history of sharp price drops (e.g., reaching an all-time low of USD0.0050 on July 17, 2023), reflects the instability that discourages investment and contributes to value declines.
• Market and Industry Challenges: The renewable energy sector in India and globally faces regulatory uncertainties, competition, and fluctuating government policies. Azure Power’s reliance on long-term contracts with government utilities may be affected by policy changes, economic conditions, or delays in project execution, impacting financial performance and stock value.
• Low Liquidity and Trading Volume: As an OTC stock, AZREF suffers from low trading volume and liquidity, which can exacerbate price declines.
• Investor Sentiment and Perception: Negative news, such as auditor resignations, leadership changes, and delisting, may have eroded investor confidence. The lack of dividend payments and uncertainty about future profitability further contribute to the perception of AZREF as a high-risk investment, driving down demand and stock price.

Technical Observation (on the daily chart):

The Relative Strength Index (RSI) over a 14-day period stands at a value of 48.72, currently near mid-levels. Additionally, the stock's current positioning is above both the 50-period SMA and 200-period SMA, which may serve as dynamic short to medium-term support levels.

As per the above-mentioned price action, recent key business and financial updates, momentum in the stock over the last month, and technical indicators analysis, a ‘SELL’ rating has been given for Azure Power Global Limited (OTC: AZREF) at the current market price of USD 0.90, as of March 26, 2025, at 08:10 am PDT. 

Individuals can evaluate the stock based on the support and resistance levels provided in the report in case of keen interest taking into consideration the risk-reward scenario. 

Markets are trading in a highly volatile zone currently due to certain macro-economic issues and prevailing geopolitical tensions. Therefore, it is prudent to follow a cautious approach while investing.

Related Risk: This report may be looked at from a high-risk perspective and a recommendation is provided for a short duration. This report is solely based on technical parameters, and the fundamental performance of the stocks has not been considered in the decision-making process. Other factors which could impact the stock prices include market risks, regulatory risks, interest rates risks, currency risks, social and political instability risks etc. 

Note 1: Past performance is not a reliable indicator of future performance.

Note 2: The reference date for all price data, currency, technical indicators, support, and resistance level is March 26, 2025. The reference data in this report has been partly sourced from REFINITIV.

Note 3: Investment decisions should be made depending on an individual's appetite for upside potential, risks, holding duration, and any previous holdings. An 'Exit' from the stock can be considered if the Target Price mentioned as per the Valuation and or the technical levels provided has been achieved and is subject to the factors discussed above.

Note 4: Target Price refers to a price level that the stock is expected to reach as per the relative valuation method and or technical analysis taking into consideration both short-term and long-term scenarios.

Note 5: ‘Kalkine reports are prepared based on the stock prices captured either from the New York Stock Exchange (NYSE), NASDAQ Capital Markets (NASDAQ), and or REFINITIV. Typically, all sources (NYSE, NASDAQ, or REFINITIV) may reflect stock prices with a delay which could be a lag of 15-20 minutes. There can be no assurance that future results or events will be consistent with the information provided in the report. The information is subject to change without any prior notice.