Small Cap Fashion Stock Jumps 17% In One Month | What’s Driving The Rally?

Small Cap Fashion Stock Alert: Shares of Nandani Creation Limited rallied during Thursday's intraday trading session. The small cap fashion stock has delivered nearly 17% return in one month.

Nandani Creation stock was trading 1.28% higher at Rs 32.84 per share on NSE at 1:22 pm. The rally in Nandani Creation stock came day after the firm announced expansion of its franchisee stores.

"Nandani Creation Ltd (NCL) has announced the signing of its two new Franchisee Stores- Exclusive Brand Outlet (EBO) in Karol Bagh & Rohini, Delhi. This strategic expansion underscores the company's commitment to strengthening its retail footprint in key target markets. Both stores are scheduled to open in May 2026," as per the BSE filing released on Wednesday.

The rally stood out because it came during a weak session for equities. Despite this broader drop, Nandani Creation share price moved higher through the session.

Nandani Fasion Association With Reliance Fashion Factory

Few weeks ago, the firm had announced its association with Reliance Fashion Factory. The company said the association with Reliance Fashion Factory, earlier called Brand Factory, allows Jaipur Kurti to access more than 25 outlets. A company statement dated 23 April noted that this network gives an organised route to sell ageing and slow-moving garments. It also helps release capital that was earlier stuck in low-performing stock, which many analysts see as a critical phase in the apparel business.

Reliance Fashion Factory stores aim to serve as multi-category Fashion hubs. Outlets stock western wear, ethnic Indian wear, footwear, accessories and other items. They follow a "Fashion 365 Days" model, which keeps promotions available throughout the year. That approach is expected to support regular clearance of older collections from brands such as Jaipur Kurti.

Nandani Creation said it continues to develop a direct-to-consumer ecosystem for women's ethnic wear. The company is trying to improve the shopping journey through stronger retail reach and better digital platforms. Offline stores and online channels are being upgraded together so customers can access the range across formats with minimal friction.

The management highlighted capital discipline as a key reason for the Reliance association. "This partnership with Reliance Fashion Factory will deepen our presence in the value retail segment and aligns with our strategic focus on capital efficiency. The successful completion of stock churning reflects our continued focus on disciplined inventory management and working capital efficiency," said Anuj Mundhra, Chairman & Managing Director of Nandani Creation.

Alongside partnerships, Nandani Creation has been building its store footprint. The company currently operates eight company-owned, company-operated outlets. These are three stores in Jaipur and one each in Ahmedabad, Kota, Shri Ganganagar, Lucknow and Ghaziabad. There are also five franchise-owned, franchise-operated stores, including one in Delhi, two in Gurugram and one outlet each in Mumbai and Ajmer.