I have had on my watch list for a long time Azure Power.

I’m generally interested in companies that stand to gain from the global switch to renewables from raw materials to end products.

Azure Power is a renewable power producer based in India but listed on the US exchange.

Like many companies in 2022 its share price has taken a hit but has been holding up reasonably well in the $10-$15 range until this week.

It was announced that the newly appointed CEO was to step down, a whistleblower had come forward with procedural irregularities and misconduct, the company has also delayed the release of its annual report.

As a result its share price has fallen around 68% in 3 days and now sits around $3.50.

While it is certainly not good news it does feel like the market might be overreacting. While dodgy practice is never good, does it fundamentally alter its revenue and its growth to warrant a 2/3 decrease in market cap?

This knife is definitely falling but how close is it to the bottom and is it worth a punt or is there more bad news to come?

It is staying on the watch list for the moment but I am very tempted to try and catch this knife.

$AZRE