Nandan Denim's Quality Grade Change Reflects Strong Operational Efficiency and Market Position

Nandan Denim, a microcap player in the Garments & Apparels industry, has recently undergone an evaluation revision, reflecting its performance metrics and market position. The company has demonstrated notable sales growth over the past five years, with a rate of 18.40%. Additionally, its EBIT growth during the same period stands at an impressive 45.55%, indicating strong operational efficiency.
Financial stability is highlighted by a debt-to-EBITDA ratio of 5.79 and a net debt-to-equity ratio of 0.70, suggesting a manageable level of leverage. The company's sales to capital employed ratio is recorded at 2.05, which points to effective utilization of its capital resources. Furthermore, Nandan Denim maintains a tax ratio of 27.00% and a return on capital employed (ROCE) of 4.66%, alongside a return on equity (ROE) of 5.17%.

In comparison to its peers, Nandan Denim's performance metrics align closely with several companies in the industry, with some competitors showing varying levels of operational efficiency. Notably, Ambika Cotton stands out with a stronger performance, while others like Rajapalayam Mill and RSWM Ltd are positioned lower in the comparative landscape. This evaluation adjustment underscores Nandan Denim's relative standing within the competitive framework of the garments and apparel sector.