Weizmann Receives 'Sell' Rating from MarketsMOJO Due to Poor Long-Term Growth.

Weizmann, a microcap textile company, has recently received a 'Sell' rating from MarketsMOJO on February 19, 2024. This downgrade is based on the company's poor long-term growth, with net sales only growing at an annual rate of 7.94% and operating profit at 0.19% over the last 5 years.
The stock is currently in a Mildly Bearish range, with the technical trend deteriorating from Mildly Bullish on February 19, 2024. Multiple factors, such as RSI, Bollinger Band, and KST, are contributing to this bearish outlook.

In the past year, Weizmann has underperformed the market, generating a return of only 3.20% compared to the market's (BSE 500) return of 34.09%. However, the company has a strong ability to service debt, with a low Debt to EBITDA ratio of 1.33 times.

On a positive note, Weizmann has declared positive results for the last 3 consecutive quarters, with a 90.50% growth in PAT (HY) at Rs 4.21 crore and a highest DEBTORS TURNOVER RATIO (HY) of 14.76 times. Additionally, with a ROCE of 15.1, the company has a fair valuation with a 2.3 Enterprise value to Capital Employed.

Despite these positive factors, the stock is currently trading at a discount compared to its average historical valuations. In the past year, while the stock has generated a return of 3.20%, its profits have only risen by 5.9%, resulting in a PEG ratio of 3.5.

It is worth noting that the majority shareholders of Weizmann are the promoters themselves. As a microcap company in the textile industry, Weizmann's stock may not be a favorable investment option at this time, according to MarketsMOJO's analysis.