Nandan Denim Reports Improved Financial Metrics Amid Mixed Profit Trends

Nandan Denim, a microcap player in the Garments & Apparels industry, has recently undergone a financial trend adjustment reflecting its improved performance metrics for the quarter ending March 2025. The company's evaluation revision highlights a notable increase in its score, indicating a positive shift in its financial health.
Key performance indicators reveal several strengths for Nandan Denim. The company boasts a low debt-equity ratio of 0.40 times, showcasing its strong financial leverage. Additionally, it has achieved an impressive inventory turnover ratio of 20.06 times, indicating efficient inventory management. The net sales for the quarter reached Rs 1,048.65 crore, marking a significant achievement. Furthermore, the operating profit to interest ratio stands at 3.79 times, while the debtors turnover ratio is at a high of 6.95 times. Notably, profit before tax less other income has grown by 34.9% compared to the previous four-quarter average.

However, not all metrics are favorable. The profit after tax for the quarter is reported at Rs 10.63 crore, reflecting a decline of 14.9% compared to the previous four-quarter average.

In terms of market performance, Nandan Denim has shown resilience, with a one-week return of 0.75% compared to a negative return for the Sensex. Over the past year, the stock has returned 3.93%, while the Sensex has returned 8.36%. The company’s five-year return of 770.13% significantly outpaces the Sensex's 166.43%, underscoring its long-term growth potential.