1:10 Stock Split: September 19 Record Date Fixed; Should Investors Book Profits?

The denim fabric maker Nandan Denim Limited is headquartered in Ahmedabad, Gujarat, India. It is one of the largest manufacturers of denim fabric in India and is a member of the Chiripal Group. Products from Nandan Denim include yarn, various textiles, shirting, and denim. The primary line of business of Nandan Denim is the production and retail of textiles, such as denim, yarn, and shirting. The BSE opened Nandan Denim's shares on Monday at Rs 60.89 per, and they quickly rose to a new 52-week high of Rs 63.50. The spike in stock price occurred after the company announced the record date for a stock split.

Nandan Denim Stock Split Record Date

"Pursuant to Regulation 42 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, we wish to inform you that the Company has fixed Thursday, September 19, 2024 as the "Record date" for determining eligibility of shareholders for the purpose of Sub-division/split of existing Equity Shares of the Company from Face Value of Rs. 10/- each fully paid-up to Face Value of Re. 1/- each fully paid-up, ranking pari-passu in all respects, which was approved by the Equity Shareholders at 30th Annual General Meeting of the Company held on September 06, 2024," said Nandan Denim in a stock exchange filing on September 07, 2024.

Nandan Denim said the stock split has been approved in order to improve the liquidity of the company's equity shares in the stock market and to make it more affordable to small retail investors.

Nandan Denim Financials

Nandan Denim revealed its first-quarter FY25 financial figures in July, displaying a significant rise in profitability. For the quarter that ended in June 2024, the firm reported a standalone net profit of Rs 7.49 crore, a significant rise over the Rs 1.70 crore it made in the same period the previous year. Revenue from operations increased to Rs 721 crore in Q1FY25 from Rs 553 crore in the same quarter of the previous fiscal year, a year-over-year increase of more than 30%.

Nandan Denim Share Price Target

"Nandan Denim is bullish but also overbought on the Daily charts with next resistance at 65. Investors should book profits at current levels as a Daily close below support of 52.7 could lead to a fall till 46 in the near term," said A R Ramachandran, Independent Research Analyst.

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