Weizmann Ltd Stock Falls to 52-Week Low of Rs.85.55

Recent Price Movement and Trading Patterns

The stock has been on a consistent decline, registering losses over the past five consecutive trading sessions with a cumulative return of -7.56% during this period. Today’s closing price of Rs.85.55 represents the lowest level the stock has touched in the last year, significantly down from its 52-week high of Rs.141.80. Notably, the stock underperformed its sector peers by 1.91% today, reflecting relative weakness within the Garments & Apparels industry.

Trading activity has been somewhat erratic, with the stock not trading on one of the last 20 trading days, indicating intermittent liquidity concerns. Furthermore, Weizmann Ltd is currently trading below all key moving averages — the 5-day, 20-day, 50-day, 100-day, and 200-day averages — signalling a sustained bearish momentum in the near to medium term.

Market Context and Comparative Performance

While the broader market, represented by the Sensex, opened higher at 82,459.66 with a gain of 550.03 points (0.67%) and is trading near its 52-week high, Weizmann Ltd’s performance contrasts sharply. The Sensex remains approximately 4.91% below its 52-week peak of 86,159.02 but has experienced a three-week consecutive decline of -4.24%. Mid-cap stocks have been leading the market rally, with the BSE Mid Cap index gaining 1.11% today, further highlighting Weizmann’s relative underperformance.

Over the past year, Weizmann Ltd’s stock has declined by 33.42%, whereas the Sensex has delivered a positive return of 7.41%, underscoring the stock’s challenges in keeping pace with broader market gains.

Financial Performance and Valuation Metrics

Weizmann Ltd’s financial indicators reflect subdued growth and valuation concerns. The company’s net sales have grown at an annualised rate of 9.40% over the last five years, while operating profit has increased at a slightly higher rate of 14.78% during the same period. Despite this, the return on equity (ROE) stands at a negative -5.5%, signalling challenges in generating shareholder value.

The stock’s price-to-book (P/B) ratio is 2.1, which is considered expensive relative to its historical valuations and peers within the Garments & Apparels sector. However, the current market price reflects a discount compared to the average historical valuations of its peer group, indicating market caution.

Profitability has notably deteriorated over the past year, with profits falling by 147.6%, contributing to the stock’s negative returns. The company’s performance has been below par not only in the recent year but also over the last three years and three months, underperforming the BSE500 index consistently across these time frames.

Debt Position and Recent Operational Highlights

On a positive note, Weizmann Ltd maintains a strong ability to service its debt, with a low Debt to EBITDA ratio of 0.58 times, indicating manageable leverage levels. The company’s latest financial results for the six months ending September 2025 showed net sales of Rs.65.87 crores, reflecting a growth rate of 25.66% compared to the previous period. Operating cash flow for the year reached a peak of Rs.13.68 crores, and profit after tax (PAT) for the latest six months stood at Rs.3.19 crores, marking an improvement in cash generation and profitability metrics.

Promoters remain the majority shareholders, maintaining significant control over the company’s strategic direction.

Mojo Score and Analyst Ratings

According to MarketsMOJO’s assessment, Weizmann Ltd holds a Mojo Score of 37.0, categorised under a Sell grade as of 29 July 2025, a downgrade from its previous Hold rating. The Market Cap Grade is rated 4, reflecting the company’s mid-tier market capitalisation within its sector. This grading aligns with the stock’s recent price performance and financial metrics, signalling caution in the current market environment.

Summary of Key Concerns

The stock’s fall to its 52-week low is underpinned by a combination of factors including sustained negative returns, underwhelming profitability, and valuation concerns. Despite some positive cash flow and sales growth in recent periods, the overall trend remains subdued. The stock’s consistent trading below all major moving averages further emphasises the prevailing bearish sentiment among market participants.

While the broader market and mid-cap indices have shown resilience, Weizmann Ltd’s relative underperformance highlights sector-specific and company-specific challenges that have weighed on investor sentiment and price levels.

Conclusion

Weizmann Ltd’s stock touching a new 52-week low at Rs.85.55 marks a significant milestone in its recent price journey, reflecting a complex interplay of financial performance, valuation, and market dynamics. The company’s ability to maintain debt discipline and recent improvements in cash flow provide some stabilising factors amid a generally cautious outlook. However, the stock’s extended downtrend and relative underperformance against benchmarks underscore the challenges faced by the company in the current market environment.

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