Weizmann Receives 'Hold' Rating from MarketsMOJO, Shows Strong Debt-Servicing Ability and Positive Results

Weizmann, a microcap textile company, has recently received a 'Hold' rating from MarketsMOJO on August 5th, 2024. This upgrade is based on the company's strong ability to service debt, with a low Debt to EBITDA ratio of 1.33 times.
In addition, Weizmann has shown positive results for the last four consecutive quarters, with a growth of 61.13% in PAT (HY) and the highest ROCE (HY) at 15.65%. The stock is also technically in a mildly bullish range, with the technical trend improving from sideways on August 5th, 2024. Furthermore, the DOW has been bullish since the same date, which is a key technical factor for the stock.

At a fair valuation with a 2.5 Price to Book Value and a ROE of 12.3, Weizmann is currently trading at a discount compared to its average historical valuations. Despite generating a return of 24.80% in the past year, the company's profits have risen by 110.6%, resulting in a low PEG ratio of 0.2.

It is worth noting that the majority shareholders of Weizmann are the promoters themselves. However, the company has shown poor long-term growth, with a net sales growth rate of only 3.25% and an operating profit growth rate of 0.19% over the last five years.

Overall, while Weizmann may not have future potential or investor interest, it is currently a hold for investors due to its strong debt-servicing ability, positive recent results, and fair valuation. However, the company's long-term growth may be a concern for some investors.