Nandan Denim Limited (NDL) AI Stock Analysis

• Market Cap: ₹3.68B
• Dividend Yield: N/A
• Average Volume (3M): 401.47K
• Price to Earnings (P/E): 35.8
• Beta (1Y): 1.69
• Revenue Growth: 45.69%
• EPS Growth: -26.26%
• Country: IN
• Employees: 2,078
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Apparel - Manufacturers
• EPS (TTM): 0.02
• Shares Outstanding: 1,441,471,700
• 10 Day Avg. Volume: 162,099
• 30 Day Avg. Volume: 401,470
• PEG Ratio: -0.61
• Price to Book (P/B): 0.85
• Price to Sales (P/S): 0.15
• P/FCF Ratio: 6.10
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 65 Neutral
• Price Target: ₹2.50 ▼(-15.82% Downside)
• Action: Reiterated Date: 02/04/26
• Date: Action: Reiterated 02/04/26

The score is primarily supported by solid financial performance (strong revenue growth and cash flow strength). Technicals are mixed with a weaker longer-term trend (below 100/200 DMA and negative MACD), while valuation is moderately supportive with a P/E around 11.5.

Positive Factors

Revenue growth and demand

Nandan Denim's sustained top-line expansion (reported revenue growth ~9.86%) coupled with improving gross/EBIT/EBITDA margins signals durable demand from apparel manufacturers. This supports continued scale benefits, stronger operating leverage and longer‑term cash generation potential.

Free cash flow strength

Robust free cash flow generation and a healthy operating cash flow to net income ratio indicate efficient working‑capital and capex management. Durable FCF reduces refinancing risk, funds reinvestment and debt paydown, and underpins strategic flexibility over the medium term.

Improving leverage and equity position

A lower debt‑to‑equity ratio and increasing shareholders' equity improve financial resilience and borrowing capacity. This structural deleveraging reduces interest burden and refinancing vulnerability, enabling steadier investment in capacity or technology without excessive balance‑sheet strain.

Negative Factors

Volatile profitability / EPS decline

Despite revenue and margin improvements, a sharp negative EPS growth rate and reported net income volatility undermine earnings predictability. Persistent bottom‑line swings complicate capital allocation, make forecasting harder, and can weaken credit metrics if trends persist.

Moderate equity ratio limits cushion

A moderate equity ratio provides only limited capital buffer against cyclical shocks. That structural constraint can restrict aggressive capacity expansion or absorb prolonged demand downturns without tapping external financing, potentially raising future cost of capital.

Raw-material & apparel-cycle exposure

The business is structurally exposed to cotton/yarn price swings, energy and processing costs and apparel demand cycles. These recurring input and demand risks can compress margins and volumes over time unless mitigated by hedging, long‑term contracts or differentiated product mix.

Nandan Denim Limited Business Overview & Revenue Model

Company Description

Nandan Denim Limited manufactures and sells denims, denim and shirting fabrics, cotton fabrics, and yarns in India. It also exports its products to approximately 28 countries. The company was formerly known as Nandan Exim Limited and changed its name to Nandan Denim Limited in November 2013. Nandan Denim Limited was incorporated in 1994 and is based in Ahmedabad, India.

How the Company Makes Money

Nandan Denim Limited generates revenue primarily through the sale of denim fabric to garment manufacturers and retailers. The company's key revenue streams include direct sales to domestic apparel makers, exports to international markets, and partnerships with fashion brands that require custom denim solutions. Additionally, NDL benefits from strategic collaborations with other textile producers and brands, which help expand its market reach and enhance product offerings. The company also focuses on value-added services, such as customization and eco-friendly production processes, which can command premium pricing and attract environmentally conscious clients.

Nandan Denim Limited Financial Statement Overview

Summary

Strong revenue growth with improved gross/EBIT/EBITDA margins and strong free cash flow generation. Offsetting factors include fluctuating net income and a balance sheet that is improving (lower debt-to-equity) but still shows a moderate equity ratio.

Income Statement

Nandan Denim Limited has shown substantial revenue growth, with a remarkable increase from the previous year, indicating strong demand. The gross profit margin improved, but net profit margin remains moderate. The company has successfully increased its EBIT and EBITDA margins, reflecting enhanced operational efficiency. However, net income has fluctuated, highlighting potential volatility in profitability.

Balance Sheet

The company's debt-to-equity ratio has decreased, suggesting improved financial leverage. Stockholders' equity has grown, contributing to a stronger equity position. However, the equity ratio remains moderate, indicating a balanced but cautious capital structure. Asset management appears stable, but there's room for improvement in optimizing liabilities.

Cash Flow

Nandan Denim has demonstrated strong free cash flow growth, showcasing effective cash management. The operating cash flow to net income ratio is healthy, indicating good cash generation relative to earnings. Free cash flow to net income ratio is robust, suggesting efficient capital expenditure management. However, fluctuations in operating and investing cash flows warrant close monitoring.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	38.73B	35.47B	20.10B	20.27B	21.23B	10.92B
Gross Profit	3.75B	4.15B	2.26B	753.83M	2.51B	1.57B
EBITDA	1.28B	1.28B	1.53B	909.20M	1.74B	1.03B
Net Income	371.88M	334.80M	449.70M	5.32M	676.91M	-187.18M
Balance Sheet
Total Assets	0.00	12.74B	11.82B	12.67B	14.43B	11.83B
Cash, Cash Equivalents and Short-Term Investments	262.66M	262.66M	153.10M	108.57M	286.49M	169.28M
Total Debt	0.00	2.49B	3.30B	4.65B	5.58B	5.53B
Total Liabilities	-6.19B	6.56B	5.97B	7.27B	9.04B	7.12B
Stockholders Equity	6.19B	6.19B	5.85B	5.40B	5.39B	4.71B
Cash Flow
Free Cash Flow	0.00	866.94M	1.86B	1.23B	488.85M	101.80M
Operating Cash Flow	0.00	950.70M	2.30B	1.41B	1.01B	349.55M
Investing Cash Flow	0.00	95.62M	-497.72M	-210.81M	-554.30M	-241.27M
Financing Cash Flow	0.00	-1.17B	-1.69B	-1.45B	-342.49M	-94.37M

Nandan Denim Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 2.97
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:NDL, the sentiment is Negative. The current price of 2.97 is above the 20-day moving average (MA) of 2.88, above the 50-day MA of 2.90, and below the 200-day MA of 3.36, indicating a bearish trend. The MACD of -0.10 indicates Positive momentum. The RSI at 22.18 is Positive, neither overbought nor oversold. The STOCH value of 8.05 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:NDL.

Nandan Denim Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
LGBBROSLTD	76 Outperform	₹57.89B	16.13	―	1.07%	14.37%	12.68%
ARVIND	69 Neutral	₹89.04B	21.31	―	1.18%	8.84%	41.74%
NDL	65 Neutral	₹3.68B	35.76	―	―	45.69%	-26.26%
GOKEX	65 Neutral	₹47.35B	92.98	―	―	22.27%	7.09%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
KITEX	59 Neutral	₹33.91B	-96.49	―	0.27%	20.41%	-6.50%