MarketsMOJO downgrades Weizmann with poor growth and expensive valuation

Weizmann, a microcap textile company, has recently received a 'Sell' rating from MarketsMOJO on July 29, 2024. This downgrade is based on the company's poor long-term growth, with net sales only increasing by an annual rate of 3.25% and operating profit at 0.19% over the last 5 years. Additionally, the company's ROE of 12.3 indicates an expensive valuation with a price to book value of 2.6.
Despite the stock trading at a discount compared to its historical valuations, it has underperformed the market in the last year with a return of 25.66%, significantly lower than the market's return of 37.44%. The PEG ratio of the company is also at 0.2, indicating a lack of potential for future growth.

On a positive note, Weizmann has a strong ability to service debt with a low debt to EBITDA ratio of 1.33 times. The company has also declared positive results for the last 4 consecutive quarters, with a growth of 61.13% in PAT (HY) and the highest ROCE (HY) at 15.65%.

However, the technical trend for the stock is currently sideways, indicating no clear price momentum. The trend has deteriorated from mildly bullish on July 29, 2024, and has generated a -1% return since then.

It is worth noting that the majority shareholders of Weizmann are promoters, which may have influenced the company's current state. Overall, with the recent 'Sell' rating and various factors affecting the stock, investors may want to carefully consider their options before investing in Weizmann.