Current Rating and Its Significance
MarketsMOJO’s current Sell rating on Weizmann Ltd indicates a cautious stance towards the stock, suggesting that investors should consider reducing exposure or avoiding new purchases at this time. This recommendation is based on a comprehensive evaluation of four key parameters: Quality, Valuation, Financial Trend, and Technicals. Each of these factors contributes to the overall assessment of the company’s investment appeal and risk profile.
Quality Assessment
As of 08 February 2026, Weizmann Ltd’s quality grade is classified as average. The company has demonstrated modest growth over the past five years, with net sales increasing at an annual rate of 9.40% and operating profit growing at 14.78%. While these figures indicate some operational progress, the overall quality is tempered by a return on equity (ROE) of -5.5%, signalling that the company is currently not generating adequate returns on shareholders’ equity. This negative ROE is a critical factor in the quality evaluation, reflecting challenges in profitability and capital efficiency.
Valuation Considerations
Weizmann Ltd is currently considered expensive relative to its fundamentals, with a price-to-book (P/B) ratio of 2.2. Although this valuation is somewhat discounted compared to the historical averages of its peers, it remains high given the company’s subdued profitability and negative returns. The stock’s valuation does not appear justified by its financial performance, which is a key reason for the cautious rating. Investors should be wary of paying a premium for a company that is struggling to deliver consistent profits.
Financial Trend Analysis
The financial trend for Weizmann Ltd is rated positive, indicating some favourable developments in recent financial metrics. However, this positive trend is overshadowed by the company’s poor profit performance over the past year, with profits declining by 147.6%. The stock has delivered a negative return of -27.76% over the last 12 months, underperforming the broader BSE500 index across multiple time frames including one year, three years, and three months. This underperformance highlights the challenges the company faces in translating operational improvements into shareholder value.
Technical Outlook
The technical grade for Weizmann Ltd is bearish. The stock’s price action reflects downward momentum, with a one-day decline of -2.36% and a one-month drop of -9.08%. Over six months, the stock has fallen by 21.16%, signalling sustained selling pressure. This bearish technical stance suggests that market sentiment remains weak, and the stock may continue to face resistance in the near term.
Stock Returns and Market Performance
As of 08 February 2026, Weizmann Ltd’s stock returns paint a challenging picture for investors. The stock has declined by 27.76% over the past year and has underperformed the BSE500 benchmark consistently. Shorter-term returns also reflect volatility and weakness, with a 3-month loss of 16.96% and a 1-month decline of 9.08%. Despite a modest 6.51% gain over the past week, the overall trend remains negative, reinforcing the cautious stance advised by the current rating.
Sector and Market Context
Operating within the Garments & Apparels sector, Weizmann Ltd is classified as a microcap company. This segment often experiences volatility due to changing consumer preferences, raw material costs, and competitive pressures. The company’s current valuation and financial metrics suggest that it is not well positioned to capitalise on sector opportunities at present. Investors should weigh these sector-specific risks alongside the company’s individual performance when considering their portfolio allocations.
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What This Rating Means for Investors
The Sell rating on Weizmann Ltd serves as a signal for investors to exercise caution. It suggests that the stock currently carries elevated risks due to its expensive valuation, negative returns, and bearish technical outlook. While the company shows some positive financial trends, these are insufficient to offset the broader concerns around profitability and market performance. Investors holding the stock may consider reviewing their positions, while prospective buyers should carefully evaluate whether the risk-reward profile aligns with their investment objectives.
Summary of Key Metrics as of 08 February 2026
To summarise, the key data points supporting the current rating include:
- Mojo Score: 37.0, reflecting a Sell grade
- Negative 1-year return of -27.76%, underperforming the BSE500
- Negative ROE of -5.5%, indicating poor capital efficiency
- Price-to-Book ratio of 2.2, suggesting expensive valuation
- Bearish technical indicators with recent price declines
- Positive financial trend offset by significant profit decline (-147.6%) over the past year
These factors collectively inform the cautious recommendation and highlight the importance of ongoing monitoring of the company’s financial health and market conditions.
Looking Ahead
Investors should continue to track Weizmann Ltd’s quarterly results and sector developments closely. Improvements in profitability, valuation adjustments, or a shift in technical momentum could alter the investment outlook. Until such changes materialise, the current Sell rating reflects a prudent approach based on the available data as of 08 February 2026.
About MarketsMOJO Ratings
MarketsMOJO’s ratings are derived from a proprietary scoring system that integrates fundamental analysis, valuation metrics, financial trends, and technical signals. This holistic approach aims to provide investors with actionable insights grounded in quantitative data and market realities. The rating on Weizmann Ltd is part of this comprehensive framework, designed to assist investors in making informed decisions.
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