Nandan Denim Shares Price In Green After Ex-Split In 1:10 Sub-Division Ratio And Strong Financials

On Tuesday, shares of textile company Nandan Denim Ltd surged around 6.5 per cent to an intraday high of Rs 3.74 per share from its previous closing of Rs 3.51 per share. The stock's 52-week high is Rs 7.35 and its 52-week low is Rs 3.05. The company has a market cap of over Rs 533 crore with multibagger returns of around 623 per cent in 5 years.

The company fixed Thursday, September 19, 2024, as the record date for determining the eligibility of shareholders for the purpose of its stock split. The stock split was executed in a 1:10 ratio, meaning each existing equity share with a face value of Rs 10 has been subdivided into 10 shares, each with a face value of Re 1.

Nandan Denim's promoter holds a dominant 58.46% stake in the company as of June 2024, signalling confidence in the firm's long-term prospects. The stock's price-to-earnings (PE) ratio stands at 13.5x, which is notably lower than the industry average PE of 30x, indicating a potentially undervalued stock with room for further growth.

Nandan Denim has reported robust financial results, reflecting strong operational and market performance. For the first quarter of FY2024-25, the company's standalone net profit skyrocketed to Rs 7.49 crore, a significant leap from Rs 1.70 crore in the corresponding quarter of the previous fiscal year. This represents more than a four-fold increase in profitability. Additionally, revenue from operations surged by over 30% year-on-year (YoY), reaching Rs 721 crore, compared to Rs 553 crore in the same quarter last year.

In the preceding quarter, Q4 FY2024, Nandan Denim reported a revenue increase of 26.68%, rising to Rs 579.12 crore from Rs 457.16 crore in the same quarter of the previous fiscal year. The company's net profit for the quarter ending March 31, 2024, stood at an impressive Rs 44.97 crore, a substantial jump from just Rs 0.53 crore reported for the same period in FY2023.

Founded in 1994 as part of the Chiripal Group, Nandan Denim Ltd. has evolved from its roots as a textile trading company into a global leader in denim production. Today, the company holds the distinction of being India's largest denim manufacturer and the world's fourth-largest, with a substantial production capacity that caters to over 27 countries worldwide. Nandan Denim also serves a wide range of major retailers in India, solidifying its domestic market leadership.

The company produces over 2,000 varieties of denim fabric annually, along with an extensive range of shirting fabrics and eco-friendly organic cotton yarn. In line with global trends toward sustainability, Nandan Denim has made a concerted effort to incorporate environmentally conscious practices into its production processes. Moreover, its in-house research and development department ensures the company remains at the forefront of innovation in the textile industry, allowing it to adapt to changing market demands and continuously improve its product offerings.