AZRE - Azure Power: No Real Bargain But A Fair Price For A Strong Project Pipeline And Lots Of M&A Fantasy

• India with strong macroeconomic tailwinds for renewables; dynamic market with increasing likelihood of consolidation.
• AZRE's current financial position looks depleted and offers little leeway; the next substantial capital increase is pending to fund pipeline execution.
• After material stock price correction in recent months, AZRE seems fairly priced given its prospects.
• Two potential catalysts for valuation re-rating: (i) pipeline expansion as part of normal course of business and/or (ii) becoming an acquisition target.
• Second half of article contains in-depth number crunching on financials and valuation.

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