Textile stock below Rs 5: Infomerics Reaffirms Credit Ratings for Nandan Denims Ltd; Outlook Remains Stable

Nandan Denim Ltd (NDL), a cornerstone of the Chiripal Group since its inception in 1994, has evolved from a textile trading enterprise into a global denim powerhouse, a trajectory recently underscored by its latest credit assesSMEnt. On December 29, 2025, Infomerics Ratings reaffirmed the company’s stable credit profile, maintaining an IVR BBB/ Stable rating for its Rs 279.74 crore long-term Bank facilities and an IVR A3+ rating for its Rs 60 crore short-term facilities. This reaffirmation reflects NDL's consistent operational standing and financial resilience within the competitive textile landscape, ensuring its long-term and short-term debt obligations remain categorized under a stable outlook.

About the Company

Nandan Denim Ltd (NDL), a cornerstone of the Chiripal Group since its inception in 1994, has evolved from a textile trading enterprise into a global denim powerhouse. Today, it stands as India's premier and the world's fourth-largest denim manufacturer, catering to a vast customer base across 27 countries and major Indian retailers. NDL's expansive product range, encompassing over 2,000 annual denim variations, shirting fabrics, and sustainable organic cotton yarn, is complemented by a robust in-house R&D department dedicated to driving textile innovation.

In Q2FY26 results, the company reported revenue of Rs 784.69 crore compared to net sales of Rs 850.25 crore in Q2FY25. The net profit increased by 8 per cent to Rs 9.45 crore in Q2FY26 compared to a net profit of Rs 8.78 crore in Q2FY25. According to half-yearly results, the revenue increased by 17 per cent to Rs 1,832.37 crore in Q2FY26 compared to Q2FY25. The company reported a net profit of Rs 20.54 crore in Q2FY26, an increase of 26 per cent from the net profit of Rs 16.27 crore in Q2FY25. In its annual results, the company reported net sales of Rs 3,546.68 crore in FY25 compared to Rs 2,010.09 crore in FY24, an increase of 76 per cent. The company reported a net profit of Rs 33.48 crore in FY25.

Nandan Denims has a market cap of over Rs 400 crore. As of September 2025, the company's promoter owns the maximum share (51.01 per cent). In September 2025, DIIs bought 9,00,000 shares and increased their stake to 1.31 per cent compared to the June 2025 shareholding. The shares of the company have a PE of 11x whereas the industry PE is 20x. The stock is up by 2 per cent from its 52-week low and has given multibagger returns of 225 per cent in 5 years.

Disclaimer: The article is for informational purposes only and not investment advice.