Current Rating and Its Significance
MarketsMOJO’s 'Sell' rating for Weizmann Ltd indicates a cautious stance for investors considering this stock. This recommendation is based on a comprehensive evaluation of multiple parameters that influence the stock’s potential risk and reward profile. The rating was revised on 29 July 2025, when the Mojo Score declined by 13 points from 55 to 42, reflecting a shift in the company’s outlook. Despite this change, it is crucial to understand the stock’s present-day fundamentals and market behaviour as of 25 December 2025 to make informed investment decisions.
Here’s How Weizmann Ltd Looks Today
As of 25 December 2025, Weizmann Ltd operates within the Garments & Apparels sector and is classified as a microcap company. The current Mojo Score of 42.0 places it firmly in the 'Sell' category, signalling that the stock may underperform relative to market expectations. The stock’s price has been under pressure, with a year-to-date return of -27.87% and a one-year return of -26.47%, indicating significant challenges in recent performance.
Quality Assessment
The company’s quality grade is assessed as average. Over the past five years, Weizmann Ltd has demonstrated modest growth, with net sales increasing at an annual rate of 9.40% and operating profit growing at 14.78%. While these figures suggest some operational progress, the overall quality of earnings and return on equity (ROE) raise concerns. The ROE currently stands at -5.5%, signalling that the company is not generating adequate returns on shareholder equity, which is a critical metric for assessing management effectiveness and profitability.
Valuation Perspective
From a valuation standpoint, Weizmann Ltd is considered expensive. The stock trades at a price-to-book (P/B) ratio of 2.4, which is higher than what might be justified by its financial performance and growth prospects. Although this valuation is at a discount compared to its peers’ average historical valuations, it remains elevated given the company’s negative returns and deteriorating profits. Over the past year, profits have declined sharply by 147.6%, which further undermines the justification for the current valuation level.
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- - Fundamental Analysis
- - Technical Signals
- - Peer Comparison
Financial Trend Analysis
The financial trend for Weizmann Ltd is currently positive, which suggests some improvement or stability in recent financial metrics. However, this positive trend is overshadowed by the company’s poor long-term growth and profitability challenges. Despite the operating profit growth rate of 14.78% over five years, the sharp decline in profits over the last year and negative returns indicate that the company is struggling to convert revenue growth into sustainable earnings. This disconnect between sales growth and profitability is a key factor influencing the cautious rating.
Technical Outlook
The technical grade for the stock is mildly bearish. This reflects recent price action and market sentiment, which have been unfavourable. The stock has underperformed the BSE500 index over the last three years, one year, and three months, signalling weak momentum and investor confidence. Short-term price movements also show negative trends, with the stock declining 8.08% over the past month and 10.50% over the past three months. These technical indicators reinforce the 'Sell' rating by highlighting the stock’s vulnerability to further downside risk.
Performance Summary
Overall, Weizmann Ltd’s performance as of 25 December 2025 paints a challenging picture for investors. The stock’s negative returns, expensive valuation relative to its earnings, average quality metrics, and bearish technical signals collectively justify the current 'Sell' rating. Investors should be cautious and consider these factors carefully before initiating or maintaining positions in this stock.
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What This Means for Investors
For investors, the 'Sell' rating on Weizmann Ltd suggests that the stock currently carries a higher risk profile with limited upside potential. The combination of weak returns, expensive valuation, and bearish technical signals indicates that the stock may continue to face headwinds in the near term. Investors seeking capital preservation or growth may prefer to explore alternatives with stronger fundamentals and more favourable market dynamics.
That said, the positive financial trend hints at some operational improvements, which could be a foundation for future recovery if sustained. However, given the current metrics and market conditions, a cautious approach is warranted. Monitoring the company’s quarterly results and sector developments will be essential for reassessing the stock’s outlook over time.
Sector and Market Context
Operating in the Garments & Apparels sector, Weizmann Ltd faces competitive pressures and evolving consumer preferences that impact its growth trajectory. The microcap status of the company also implies higher volatility and liquidity risks compared to larger peers. Investors should weigh these sector-specific factors alongside the company’s individual performance when considering portfolio allocation.
In summary, the 'Sell' rating reflects a comprehensive evaluation of Weizmann Ltd’s current financial health, valuation, and market positioning as of 25 December 2025. This rating serves as a guide for investors to approach the stock with caution, recognising the challenges ahead and the need for careful monitoring.
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