Nandan Denim Ltd Stock Falls to 52-Week Low of Rs.2.7 Amidst Continued Downtrend

Stock Price Movement and Market Context

On 26 Feb 2026, Nandan Denim Ltd’s share price hit Rs.2.7, the lowest level recorded in the past year. This represents a notable decline from its 52-week high of Rs.4.41, underscoring a 38.8% drop over the period. The stock has been on a losing streak for three consecutive days, delivering a cumulative return of -2.86% during this span. Today’s performance also saw the stock underperform its Garments & Apparels sector by 0.57%, with a day change of -1.82%.

The broader market environment was mixed, with the Sensex opening 142.71 points higher but eventually retreating by 325.37 points to close at 82,093.41, down 0.22%. The Sensex remains 4.95% below its 52-week high of 86,159.02. Notably, while the Sensex trades below its 50-day moving average, the 50DMA itself remains above the 200DMA, indicating some underlying market resilience despite short-term volatility.

Technical Indicators Signal Weak Momentum

Technically, Nandan Denim is trading below all key moving averages — 5-day, 20-day, 50-day, 100-day, and 200-day — signalling sustained bearish momentum. This broad-based weakness across short, medium, and long-term averages suggests limited immediate support levels and reflects investor caution.

Financial Performance and Profitability Concerns

Nandan Denim’s recent quarterly results have contributed to the subdued market sentiment. For the quarter ending December 2025, the company reported a Profit Before Tax (PBT) less other income of Rs.2.65 crore, a sharp decline of 73.1% compared to the average of the previous four quarters. Similarly, Profit After Tax (PAT) stood at Rs.2.97 crore, down 68.6% over the same comparative period. Net sales for the quarter were Rs.499.53 crore, marking the lowest quarterly sales figure in recent times.

These figures highlight a contraction in profitability and revenue generation, which has weighed on investor confidence. Over the past year, the company’s profits have fallen by 31.5%, further emphasising the challenges faced in maintaining earnings growth.

Long-Term Performance and Valuation Metrics

Over the last twelve months, Nandan Denim’s stock has delivered a negative return of 25.41%, significantly underperforming the Sensex, which posted a positive return of 10.04% over the same period. The stock has also lagged behind the BSE500 index across multiple time frames including the last three years, one year, and three months, indicating persistent underperformance relative to broader market benchmarks.

From a fundamental perspective, the company’s long-term return on capital employed (ROCE) averages 8.35%, which is considered weak relative to industry standards. The debt servicing capacity is also a concern, with a high Debt to EBITDA ratio of 3.02 times, signalling elevated leverage and potential strain on financial flexibility.

Despite these challenges, the stock’s valuation metrics present a contrasting picture. With a ROCE of 8.6 and an enterprise value to capital employed ratio of 0.7, Nandan Denim is trading at a discount compared to its peers’ historical averages. This valuation gap reflects the market’s cautious stance but also indicates the stock is priced attractively relative to its capital base.

Shareholding and Sectoral Position

The majority shareholding in Nandan Denim remains with the promoters, maintaining a stable ownership structure. The company operates within the Garments & Apparels industry, a sector that has experienced mixed performance amid changing consumer demand and competitive pressures.

Mojo Score and Rating Update

Reflecting the company’s recent performance and outlook, Nandan Denim’s Mojo Score currently stands at 17.0, categorised under a Strong Sell grade. This represents a downgrade from its previous Hold rating as of 3 Nov 2025. The Market Capitalisation Grade is rated at 4, indicating a relatively modest market cap within its sector.

The Strong Sell rating is driven by the company’s weak long-term fundamentals, declining profitability, and elevated leverage ratios. These factors collectively contribute to the cautious stance adopted by rating agencies and market analysts.

Summary of Key Metrics

To summarise, Nandan Denim Ltd’s key financial and market metrics as of 26 Feb 2026 are:

• New 52-week low price: Rs.2.7
• 52-week high price: Rs.4.41
• One-year stock return: -25.41%
• Sensex one-year return: +10.04%
• Quarterly PBT less other income: Rs.2.65 crore (-73.1%)
• Quarterly PAT: Rs.2.97 crore (-68.6%)
• Quarterly net sales: Rs.499.53 crore (lowest quarterly sales)
• Debt to EBITDA ratio: 3.02 times
• ROCE: 8.35% (average long term)
• Mojo Score: 17.0 (Strong Sell)

The stock’s recent price action and financial results highlight the challenges faced by Nandan Denim Ltd in maintaining growth and profitability within a competitive garments and apparels sector. The downward trend in share price and key financial indicators reflect the market’s assessment of these ongoing pressures.

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