Business Overview
Weizmann Forex is in business of Forex services. It provides different forex services and acts as one stop forex solution company. It is one of the largest Forex player in India. The Company is only one of the listed players in this space.
It provides Forex services listed below
- Buy Forex
- Sell Forex
- Forex Card
- Transfer Money
Forex Card helps you go Cashless and provides secure withdrawls. It has more than 200 pickup locations. This ensures wide coverage area and it is easy to find pickup location in major cities of the Country.
It also offers free home delivery for orders worth more than 50 thousand INR. So Company has a head start in this business and area covered
Stock Performance
Above is long term price performance chart of the Stock.The stock made debut in year 2011 at price of 60 INR. It has since then performed well on exchanges. It has given five times return in short span of time.
The stock has corrected great deal in recent times trading at 300 odd levels after getting corrected from 1,500 levels. Even at these rates the PE ratio of the Stock is above 50. So it is expensive at these levels as well.
For new investors I would advice to wait for stock to consolidate for a period. The dividend yield is also decent slightly below .5%.
My Opinion
The Weizmann Forex is in unique business of Forex Exchange. This is mainly required by overseas travelers. So Company gets benefited with increase in overseas travelers. The number of overseas traveler will increase with time.
But Company cannot rely on this single source of revenue. As it will have slow growth potential. I would like to see more business growth areas offered by the Company.
There are many non listed companies operating in this business segment. So Company has tough competition with non listed players. From investor point of view it is part of Weizmann Group which has few listed Companies on exchanges.
As of now I would not invest in this Company. It has corrected great deal but still it is expensive and the growth potential is not clearly visible at least to me.