Textile Stock Below Rs 5: Revenue Surge & Debt Reduction Support Nandan Denim Ratings
DSIJ Intelligence-1Categories: Penny Stocks, Trending
The stock is up by 3.2 per cent from its 52-week low and has given multibagger returns of 195 per cent in 5 years.
Nandan Denim Ltd (NDL), a cornerstone of the Chiripal Group since its inception in 1994, Infomerics Ratings has reaffirmed the ‘IVR BBB/Stable’ and ‘IVR A3+’ ratings for Nandan Denim Limited’s (NDL) Bank facilities, totalling Rs 339.74 crore. This reaffirmation is supported by NDL’s status as one of India's largest denim manufacturers, with an annual capacity of 110 million meters and a fully integrated production cycle. The company reported a significant 76 per cent surge in total operating income, reaching Rs 3,546.68 crore in FY25. This growth is bolstered by the company’s 15-MW captive Solar power plant, which provides sustainable energy and helps insulate manufacturing costs from grid price volatility.
While revenue showed strong momentum, NDL’s EBITDA margins compressed to 3.61 per cent due to the inherent volatility of cotton prices and intense competition within the textile industry. Nevertheless, the company’s financial risk profile improved, highlighted by a reduction in overall debt and a healthy gearing ratio of 0.41x. With a stable liquidity position and projected cash accruals of Rs 77–83 crore against manageable debt repayments, NDL is well-positioned to navigate industry cyclicality, provided it maintains efficient working capital management and sustained profitability.
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 3.2 per cent from its 52-week low and has given multibagger returns of 195 per cent in 5 years.
Disclaimer: The article is for informational purposes only and not investment advice.