Textile products maker, Nandan Denim witnessed huge buying on June 10 as the stock price touched a new 52-week high of Rs 48.51 apiece. The stock is up by 60% year-to-date. The upbeat performance comes ahead of Nandan Demin's board meeting where the company will declare its third stock split. Nandan Denim has carried both stock split and reversal stock split up till now.
Nandan Demin Share Price:
After touching a new high of Rs 48.51 apiece, Nandan Denim's share price ended at Rs 45.09 apiece on BSE with a market cap of Rs 649.96 crore. YTD, the stock zoomed by 60%.
The stock's 52-week high and low is at Rs 48.51 apiece and Rs 17.26 apiece respectively. Nandan Denim is also a penny stock below Rs 50 and a market cap lower than Rs 1,000 crore.
Nandan Denim Stock Split:
In its regulatory filing, Nandan Denim revealed that the meeting of the Board of Directors of the Company is scheduled to be held on Monday, June 17, 2024, to transact the following business and other agenda Items:
- To consider and approve the Sub-division / Split of Equity Shares of the Company under the provisions of Section 61 of the Companies Act, 2013.
This would be the third stock split carried by Nandan Denim. The last stock split was a reversal where the face value of Rs 1 was increased to Rs 10, meaning a ratio of 1:10. However, the stock had split into a 1:10 ratio in November 2005.
Nandan Denim Bonus Issue:
Notably, the stock split also comes after the company paid bonus shares in the ratio of 2:1 in March 2022. Earlier, the st0ck paid free bonus shares of 1:1 ratio in January 2007.
Nandan Denim Dividend:
The company has not delivered dividends since September 2019. Before Covid-19, the company paid a dividend of Rs 0.50 per share in 2019, while the payout was Rs 0.80 per share in September 2018, and Rs 1.60 per share payout in September 2017. These dividends were final.
As per the Trendline data, the company delivered up to 15 dividends since Sept. 21, 2005.
About Nandan Denim:
Nandan Denim Limited (NDL) is India's leading and the world's fourth-largest integrated denim fabric maker. The company commenced its operations in 1994 with a textile trading business and forayed into textile manufacturing in 2004. Nandan Denim currently engages in the manufacturing of denim fabric, shirting fabric and yarn.
As per the Trendline data, among key stock analyses are ---
- Stock Price rose 129.72% and outperformed its sector by 78.97% in the past year
- Debt to Equity Ratio of 0.56 is less than 1 and healthy. This implies that its assets are financed mainly through equity.
- Promoter Share Holding stayed the same in the most recent quarter at 64.87%.
- Price to Earning Ratio is 14.47, lower than its sector PE ratio of 63.48.
- Return on Equity(ROE) for the last financial year was 7.68%, less than 10%, indicating an inefficient use of shareholder's capital to generate profit.
- Interest Coverage Ratio is 3.24, higher than 1.5. This means that it can meet its interest payments comfortably with its earnings (EBIT).
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