Weizmann Receives 'Hold' Rating from MarketsMOJO, Shows Strong Debt Servicing Ability and Consistent Returns

Weizmann, a microcap textile company, has recently received a 'Hold' rating from MarketsMOJO on April 5th, 2024. This upgrade is based on the company's strong ability to service its debt, with a low Debt to EBITDA ratio of 1.33 times. Additionally, Weizmann has declared positive results for the last three consecutive quarters, with a significant growth of 90.50% in its PAT (HY) at Rs 4.21 crore. Its DEBTORS TURNOVER RATIO (HY) is also at its highest at 14.76 times.
The technical trend for Weizmann is currently sideways, indicating no clear price momentum. However, it has improved from being mildly bearish on April 5th, 2024, and has generated a return of 11.32% since then. With a ROCE of 15.1, the stock is fairly valued with a 2.8 Enterprise value to Capital Employed. It is also trading at a discount compared to its average historical valuations.

Weizmann has consistently provided returns to its shareholders over the last three years, outperforming BSE 500 in each of the last three annual periods. In the past year, the stock has generated a return of 50.04%, while its profits have increased by 5.9%. However, the PEG ratio of the company is 4.2, indicating poor long-term growth potential.

The majority shareholders of Weizmann are its promoters, and the company has a track record of consistent returns over the last three years. However, its net sales have only grown at an annual rate of 7.94%, and its operating profit at 0.19% over the last five years, indicating slow long-term growth. Overall, with a 'Hold' rating, Weizmann seems to be a stable investment option for now, but investors should keep an eye on its growth potential in the long run.