Azure Power Global Ltd’s AZRE CEO resigned merely two months after assuming the role, and there is lack of visibility around the company’s long-term plans, according to Credit Suisse.
The Azure Power Global Analyst: Maheep Mandloi downgraded Azure Power Global from Outperform to Underperform, while slashing the price target from $22 to $5.
The Azure Power Global Takeaways: The company has filed for a delay in its financial audit without mentioning a timeline, Mandloi said in the downgrade note.
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“It is our view that the delay is mainly due to the company transitioning out of the emerging growth classification five years following its IPO, thereby requiring stronger accounting audit,” the analyst said.
“After a whistleblower complaint at one power plant, the company identified deviations in safety norms and evidence of project data manipulation by some employees,” he said.
Mandloi also expressed concern around weaker portfolio performance.
AZRE Price Action: Shares of Azure Power Global were down 25.81% at $4.34 midday Tuesday.
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