Nandan Denim Stock Falls to 52-Week Low of Rs.2.93 Amidst Weak Financial Indicators

Stock Price Movement and Market Context

On 8 December 2025, Nandan Denim's stock price touched Rs.2.93, the lowest level in the past year. This decline comes after two consecutive days of negative returns, with the stock losing approximately 1.3% over this period. The day’s change registered a marginal dip of 0.33%, aligning with the broader sector’s performance. Despite the Sensex opening flat and trading slightly lower by 0.26% at 85,486.18 points, it remains close to its 52-week high of 86,159.02, indicating a divergence between the broader market and Nandan Denim’s share price trajectory.

The stock is currently trading below its 5-day, 20-day, 50-day, 100-day, and 200-day moving averages, signalling a persistent downward trend. This contrasts with the Sensex, which is trading above its 50-day moving average, with the 50 DMA positioned above the 200 DMA, reflecting a generally bullish market environment.

Financial Performance Highlights

Nandan Denim’s financial metrics over the recent periods reveal pressures on profitability and sales. The company’s net sales for the latest quarter stood at Rs.784.69 crores, showing a decline of 19.0% compared to the average of the previous four quarters. This contraction in sales has coincided with a reduction in profits, as the profit after tax (PAT) for the nine-month period registered Rs.31.26 crores, reflecting a fall of 27.94% year-on-year.

Operating cash flow for the year was recorded at Rs.95.07 crores, the lowest level observed in recent years. The company’s ability to generate cash from operations has thus been constrained, which may impact its capacity to meet financial obligations and invest in growth initiatives.

Debt and Capital Efficiency Metrics

The company’s debt servicing capacity remains under scrutiny, with a Debt to EBITDA ratio of 3.02 times. This level indicates a relatively high leverage position, which could constrain financial flexibility. Return on Capital Employed (ROCE) averaged 8.35%, suggesting modest efficiency in generating returns from the capital invested in the business.

Despite these challenges, the stock’s valuation metrics present a contrasting picture. The enterprise value to capital employed ratio stands at 0.8, which is considered attractive relative to historical valuations of peers in the garments and apparels sector. This valuation discount reflects the market’s cautious stance on the company’s near-term prospects.

Shareholding and Institutional Participation

Institutional investors have reduced their holdings by 0.66% over the previous quarter, collectively holding just 2% of the company’s shares. This decline in institutional participation may reflect a reassessment of the company’s fundamentals by investors with greater analytical resources. The reduced stake contrasts with the broader market trend, where institutional investors often maintain or increase exposure to companies with stable or improving fundamentals.

Comparative Performance and Sectoral Context

Over the past year, Nandan Denim’s stock has recorded a return of -40.16%, significantly underperforming the Sensex, which has shown a positive return of 4.59% during the same period. The stock has also lagged behind the BSE500 index over the last three years, one year, and three months, indicating a sustained period of underperformance relative to broader market benchmarks.

The garments and apparels sector has experienced mixed performance, with some companies benefiting from shifts in consumer demand and supply chain adjustments. However, Nandan Denim’s results suggest it has faced headwinds that have impacted both sales and profitability, contributing to the stock’s downward trajectory.

Valuation and Profitability Trends

While the stock price has declined sharply, the company’s valuation metrics suggest it is trading at a discount compared to its peers’ historical averages. This is underscored by the enterprise value to capital employed ratio of 0.8, which is considered very attractive within the sector.

However, profitability has shown a downward trend, with profits falling by 26.3% over the past year. This decline in earnings has contributed to the stock’s performance and reflects challenges in maintaining revenue growth and cost control.

Summary of Key Financial Indicators

To summarise, Nandan Denim’s key financial indicators over recent periods include:

• Net sales for the latest quarter at Rs.784.69 crores, down 19.0% compared to the previous four-quarter average


• Profit after tax for nine months at Rs.31.26 crores, down 27.94% year-on-year


• Operating cash flow for the year at Rs.95.07 crores, the lowest recorded in recent years


• Debt to EBITDA ratio of 3.02 times, indicating elevated leverage


• Return on Capital Employed averaging 8.35%


• Institutional shareholding reduced by 0.66% to 2% of total shares

The stock’s 52-week high was Rs.6.05, highlighting the extent of the decline to the current low of Rs.2.93. This represents a significant contraction in market value over the past year.

Market and Sector Overview

The broader market environment remains relatively positive, with the Sensex trading near its 52-week high and maintaining bullish moving averages. This divergence between Nandan Denim’s share price and the overall market suggests company-specific factors are influencing investor sentiment and valuation.

Within the garments and apparels sector, companies have faced varying degrees of pressure due to changing consumer preferences, input cost fluctuations, and competitive dynamics. Nandan Denim’s financial results and stock performance indicate it has been more affected than some of its peers.

Investors and market participants will continue to monitor the company’s financial disclosures and market developments to assess any changes in its performance trajectory.

Limited Time Only! Upgrade now and get 1 Year of Stock of the week worth Rs. 14,999 for FREE. Don't miss out on this exclusive offer. Claim Your Free Year →