Nandan Denim, a textile company with penny stock status, witnessed robust buying on June 18 so much so that there were no sellers in it. Nandan froze at its 20% upper circuit limits and touched a new all-time high on BSE and NSE. The reason behind the bull run in Nandan Denim shares is that it announces a stock split in the ratio of 10:1.
Nandan Denim Share Price:
The penny stock locked at 20% upper circuit on June 18 to Rs 52.77 apiece on NSE. This was also its new 52-week high. Upper circuits generally mean that there were many buyers in the stock but no sellers.
The stock has more than doubled from its 52-week low of Rs 18.50 apiece. Its market cap is currently at Rs 760.66 crore.
Nandan Denim stock has a PE ratio of 16.93x, and a return on equity of 7.68%. Its EPS is at Rs 3.12 per share.
YTD, Nandan Denim shares are up by 88.5% on NSE. While in a year, the stock zoomed by a whopping 172%. 5-year gains is about 292%. While the stock's all-time gains a breathtaking by 926% on BSE.
Nandan Denim Stock Split:
Nandan received the approval for stock sub-division in the ratio of 10:1. This means that 1 equity share having a face value of Rs 10 each will be subdivided into 10 equity shares having a face value of Rs 1 each.
This is subject to the approval of shareholders of the company and other statutory regulatory authorities, as may be required. Nandan said, "In this respect, the record date for subdivision/split shall be intimated to the Stock Exchanges in due course."
Usually, in a stock split, the face value reduces while the number of shares in an investor's portfolio rises. However, the share capital remains the same in the stock split process.
Share splits mean that listed companies can split their existing shares into a ratio decided by them for a host of reasons. These could be done to improve liquidity, lessen the value of the stock, make it cheaper or simply attract new buying from both existing and new investors.
With this stock split, Nandan plans to improve the liquidity of the Company's equity shares in the stock market and to make it more affordable to small retail investors.
The stock split is expected to be completed within the prescribed timeline specified in this regard, if any, under the Companies Act, 2013 and rules made thereunder and/or SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.
Fundamentals of Nandan Denim Stock:
As per Axis Direct data, in the last 1 year, Nandan Denim Ltd has beaten the Nifty 50 by 146.99% (CAGR difference). In the last 1 year, the volatility of Nandan Denim Ltd has been Higher than the Nifty 50 volatility by 2.71%. For 8 out of the Last 12 Months, i.e. 67% of the time it has beaten Index returns.
Among its stock trivia, the brokerage said that FII shareholding in the company has increased by 39.07% in the past 3 Months.
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.
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