Nandan Denim's Q4 financials show strong growth, receives 'Hold' call from MarketsMOJO

Nandan Denim, a microcap textile company, has recently announced its financial results for the quarter ended March 2024. The company has received a 'Hold' call from MarketsMOJO, indicating a neutral stance on its stock.

According to the financials, Nandan Denim has shown a very positive performance in the quarter, with a consistent score in the last three months. The company's Profit After Tax (PAT) has seen a significant growth of 418.9% compared to the average PAT of the previous four quarters. This trend is expected to continue in the near term.

The company's Profit Before Tax (PBT) has also shown a positive trend, with a quarterly high of Rs 12.97 crore and a growth in each of the last five quarters. Similarly, the Net Sales for the quarter have also seen a growth of 22.7% compared to the average of the previous four quarters. This indicates a positive trend in the company's sales performance.

Nandan Denim's Operating Profit (PBDIT) and Earnings per Share (EPS) have also shown a positive trend, with a quarterly high in the last five quarters. This signifies the company's ability to generate higher earnings for its shareholders.

However, there are some areas that need improvement for Nandan Denim. The company's interest cost has increased by 39.87% quarter on quarter, indicating a rise in borrowings. Additionally, the company's Non Operating Income is 66.54% of its PBT, which is a cause for concern as it shows a high reliance on non-business activities for income. The company's Non Operating Income has also seen a significant increase in the last five quarters, which may not be sustainable in the long run.

Overall, Nandan Denim has shown a positive financial performance in the quarter ended March 2024, with some areas that need attention. Investors are advised to hold their position in the company's stock, as suggested by MarketsMOJO.