Stock Price Movement and Market Context
On 12 Jan 2026, Nandan Denim Ltd’s share price touched Rs.2.84, the lowest level recorded in the past year. This represents a decline of 1.71% on the day, underperforming the Garments & Apparels sector by 0.45%. The stock has been on a losing streak for two consecutive sessions, cumulatively falling by 3.37% during this period. Notably, the share price is trading below all key moving averages — 5-day, 20-day, 50-day, 100-day, and 200-day — signalling sustained bearish momentum.
In contrast, the broader market has shown resilience. The Sensex, after an initial negative opening down by 140.93 points, rebounded to close 0.14% higher at 83,690.76. The index remains within 2.95% of its 52-week high of 86,159.02, supported by gains in mega-cap stocks. While the Sensex trades below its 50-day moving average, the 50DMA remains above the 200DMA, indicating a generally positive medium-term trend for the benchmark.
Financial Performance and Valuation Metrics
Over the last twelve months, Nandan Denim Ltd has delivered a negative return of 36.78%, markedly underperforming the Sensex’s 8.19% gain. The stock’s 52-week high was Rs.5.10, highlighting the extent of the decline. The company’s financial indicators reveal several areas of concern. Its Return on Capital Employed (ROCE) stands at a modest 8.35%, reflecting limited efficiency in generating profits from capital investments. This figure is a key factor behind the recent downgrade of the company’s Mojo Grade from Hold to Strong Sell on 3 Nov 2025, with the current Mojo Score at 17.0.
Debt servicing capacity remains constrained, with a Debt to EBITDA ratio of 3.02 times, indicating elevated leverage relative to earnings before interest, tax, depreciation, and amortisation. Operating cash flow for the fiscal year is at a low of Rs.95.07 crores, while net sales for the latest quarter have dropped to Rs.784.69 crores, the lowest in recent periods. Profit after tax (PAT) for the nine months ended has declined by 27.94%, amounting to Rs.31.26 crores.
Fundamentals that don't lie! This Small Cap from Trading shows consistent growth and price strength over time. A reliable pick you can truly count on.
- - Strong fundamental track record
- - Consistent growth trajectory
- - Reliable price strength
Institutional Participation and Market Sentiment
Institutional investors have reduced their holdings in Nandan Denim Ltd by 0.66% over the previous quarter, now collectively holding just 2% of the company’s equity. This decline in institutional stake is notable given these investors’ typically rigorous fundamental analysis capabilities. The reduced participation may reflect concerns about the company’s financial health and growth prospects.
The stock’s underperformance extends beyond the recent year. It has lagged the BSE500 index over the last three years, one year, and three months, indicating a prolonged period of below-par returns relative to the broader market.
Valuation Considerations
Despite the challenges, Nandan Denim Ltd’s valuation metrics present a contrasting picture. The company’s ROCE of 8.6% is accompanied by an enterprise value to capital employed ratio of 0.7, suggesting a very attractive valuation relative to capital base. The stock currently trades at a discount compared to the average historical valuations of its peers in the Garments & Apparels sector. However, this valuation discount coincides with a profit decline of 26.3% over the past year, underscoring the complex balance between price and performance.
Nandan Denim Ltd or something better? Our SwitchER feature analyzes this micro-cap Garments & Apparels stock and recommends superior alternatives based on fundamentals, momentum, and value!
- - SwitchER analysis complete
- - Superior alternatives found
- - Multi-parameter evaluation
Summary of Key Metrics
To summarise, Nandan Denim Ltd’s current market and financial profile is characterised by:
- Share price at Rs.2.84, a 52-week low and down 36.78% over the last year
- Mojo Grade downgraded to Strong Sell with a score of 17.0 as of 3 Nov 2025
- Weak long-term capital efficiency with ROCE around 8.35%
- High leverage with Debt to EBITDA ratio of 3.02 times
- Declining profitability with PAT down 27.94% over nine months
- Reduced institutional ownership to 2% of equity
- Trading below all major moving averages, indicating sustained negative momentum
- Valuation metrics suggest a discount relative to peers, with EV/Capital Employed at 0.7
The stock’s performance contrasts sharply with the broader market’s positive trend, highlighting sector-specific and company-specific pressures that have weighed on investor sentiment and price levels.
Unlock special upgrade rates for a limited period. Start Saving Now →
