Weizmann Ltd Stock Falls to 52-Week Low Amidst Continued Downtrend

Recent Price Movement and Market Context

The stock closed just 4.24% above its 52-week low of Rs 88.1, signalling a persistent downtrend. Over the last three trading sessions, Weizmann Ltd’s share price has declined by 5.85%, with the stock not trading on three days out of the past twenty, indicating erratic market activity. The current price is below all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages, underscoring the bearish momentum.

In contrast, the broader market has shown resilience. The Sensex, after a negative start, recovered to close 0.21% higher at 83,750.14, just 2.88% shy of its 52-week high of 86,159.02. Mega-cap stocks have led this recovery, while Weizmann Ltd’s performance remains subdued in comparison.

Long-Term Performance and Valuation Metrics

Over the past year, Weizmann Ltd’s stock has delivered a negative return of 28.68%, significantly underperforming the Sensex, which gained 8.23% during the same period. The stock’s 52-week high was Rs 142, highlighting the extent of the decline. The company’s long-term growth has been modest, with net sales increasing at an annual rate of 9.40% and operating profit growing at 14.78% over the last five years.

Return on equity (ROE) stands at a negative 5.5%, reflecting challenges in generating shareholder value. The stock trades at a price-to-book value of 2.3, which is considered expensive relative to its peers’ average historical valuations. Despite this, the current market price represents a discount compared to those peers, indicating a divergence in market sentiment.

Profitability and Earnings Trends

Weizmann Ltd’s profitability has deteriorated over the past year, with profits falling by 147.6%. The company reported a net profit after tax (PAT) of Rs 3.19 crores in the latest six-month period, supported by net sales of Rs 65.87 crores, which grew by 25.66% in the same timeframe. Operating cash flow for the year reached a peak of Rs 13.68 crores as of September 2025, indicating some strength in cash generation despite the profit decline.

However, the negative ROE and the steep profit contraction highlight challenges in translating sales growth into sustainable earnings. The stock’s underperformance extends beyond the last year, with returns lagging behind the BSE500 index over one, three years, and the last three months.

Debt and Capital Structure

On a positive note, Weizmann Ltd maintains a conservative debt profile, with a low Debt to EBITDA ratio of 0.58 times. This suggests a strong ability to service debt obligations and manage financial leverage prudently. The company’s capital structure is predominantly controlled by promoters, who remain the majority shareholders, providing stability in ownership.

Sectoral and Market Positioning

Operating within the Garments & Apparels industry, Weizmann Ltd faces competitive pressures that have influenced its market performance. The company’s Mojo Score currently stands at 37.0, with a Mojo Grade of Sell, downgraded from Hold on 29 July 2025. This reflects a cautious stance on the stock’s outlook based on its financial and market metrics.

The stock’s market capitalisation grade is 4, indicating a relatively modest market cap within its sector. Despite the recent price weakness, the stock’s valuation remains discounted relative to peers, which may reflect market concerns about growth sustainability and profitability.

Trading Patterns and Volatility

Weizmann Ltd’s share price has exhibited volatility, with erratic trading patterns noted over the past month. The stock did not trade on three separate days within the last twenty trading sessions, which may indicate lower liquidity or intermittent investor interest. The consecutive three-day decline and trading below all major moving averages reinforce the current bearish trend.

In comparison, the broader market has shown resilience, with the Sensex recovering from an early dip to close in positive territory. This divergence highlights the stock’s relative weakness amid a generally stable market environment.

Summary of Key Financial Indicators

To summarise, Weizmann Ltd’s key financial indicators present a mixed picture:

• Net sales growth over five years: 9.40% annually


• Operating profit growth over five years: 14.78% annually


• Return on equity: -5.5%


• Price to book value: 2.3 times


• Debt to EBITDA ratio: 0.58 times


• Profit decline over past year: -147.6%


• Latest six-month PAT: Rs 3.19 crores


• Latest six-month net sales: Rs 65.87 crores (up 25.66%)

These figures illustrate the company’s challenges in profitability despite some growth in sales and cash flow generation.

Conclusion

Weizmann Ltd’s recent fall to its 52-week low reflects a combination of subdued earnings performance, valuation concerns, and market volatility. While the company maintains a solid debt servicing capacity and has shown some sales growth, the negative returns and profit contraction have weighed on investor sentiment. The stock’s trading below all major moving averages and erratic activity further underline the cautious environment surrounding it.

As of 12 January 2026, the stock remains under pressure, with its Mojo Grade at Sell, indicating a need for close monitoring of its financial and market developments going forward.

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