At the end of last year, Azure Power Global Ltd. (NYSE: AZRE) was a bona fide bargain pick, trading just below $9. Stock has since climbed significantly, hitting a peak of $13.38 and trading at $13.00 today. Although it has broken past $10, it could still be considered a bargain, especially when looking at the potential upside.
At the end of the company’s previous fiscal quarter, it reported revenue of $40.3 million, an increase of 31.3% over the previous year. This was thanks to the successful implementation of new projects and a 64% year over year increase in electricity generation output. Although the company reported a total quarterly loss of $0.25 per share, its long term growth looks promising, especially as the solar market picks up.
Azure Power Global is one of the world’s largest solar companies. Based in India, it has access to a market comprised of more than a billion consumers. It also sells its technologies internationally, which will help it to increase its earnings in the coming quarters.
It’s not unusual to see a solar company of this size run at a loss. Investment in research, development, and manufacturing is expensive. The coming quarters will reveal just how much the investment is paying off. At least on the top line, it already appears that Azure is making progress. Six analysts recorded by FactSet recommend a BUY rating on this stock today, compared to just four analysts a month ago. The average target price of $20.90 indicates a strong upside which will appeal to alternative investors.
- 1 Year Price Growth: 88%
- YTD Price Growth: 65%
- 3 Month Price Growth: 72%
All information is based on current and historical market data, as well as publicly available financial data. As with any financial decision, your own research is important. Stock market outcomes can never be 100% accurately predicted. Familiarity with historical data, individual industries, and individual stocks is key to developing a robust portfolio. Note that stock prices can fluctuate rapidly during trading sessions.