Nandan Denim Limited (NDL) AI Stock Analysis

• Market Cap: ₹4.73B
• Dividend Yield: N/A
• Average Volume (3M): 401.47K
• Price to Earnings (P/E): 12.7
• Beta (1Y): 1.52
• Revenue Growth: 45.69%
• EPS Growth: -26.26%
• Country: IN
• Employees: 2,078
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Apparel - Manufacturers
• EPS (TTM): 0.07
• 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: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 61 Neutral
• Price Target: ₹3.00 ▼(-2.28% Downside)

Nandan Denim Limited's overall stock score is primarily driven by its strong financial performance, characterized by robust revenue growth and effective cash management. However, the bearish technical indicators and moderate valuation suggest caution. The absence of dividend yield and lack of recent earnings call data further limit the stock's appeal.

Positive Factors

Revenue Growth

The company has demonstrated substantial revenue growth, indicating strong demand and effective market positioning, which supports long-term business sustainability.

Cash Flow Management

Strong free cash flow growth indicates efficient capital expenditure management and liquidity, providing the company with financial flexibility for future investments.

Operational Efficiency

Improved EBIT and EBITDA margins suggest better cost control and operational efficiency, which can lead to higher profitability and competitive advantage.

Negative Factors

Profitability Fluctuations

Fluctuations in net income suggest potential instability in profitability, which could affect the company's ability to consistently generate earnings over time.

Moderate Equity Ratios

Moderate equity ratios may limit the company's ability to leverage its balance sheet for growth, potentially restricting financial agility in competitive markets.

Debt Management

While improved, the need for cautious financial planning remains due to past debt levels, which could impact future borrowing capacity and financial stability.

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

Nandan Denim Limited presents a robust financial profile with strong revenue growth and improving operational efficiencies. The company is effectively managing its debt, but profitability fluctuations and moderate equity ratios suggest a need for cautious financial planning. Cash flows are notably strong, reinforcing its liquidity position.

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	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 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: 3.07
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

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 3.07 is below the 20-day moving average (MA) of 3.19, below the 50-day MA of 3.28, and below the 200-day MA of 3.62, indicating a bearish trend. The MACD of -0.06 indicates Positive momentum. The RSI at 33.66 is Neutral, neither overbought nor oversold. The STOCH value of 41.69 is Neutral, 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	₹57.93B	17.95	―	1.02%	14.37%	12.68%
ARVIND	73 Outperform	₹93.57B	22.74	―	1.08%	8.84%	41.74%
GOKEX	69 Neutral	₹67.94B	43.61	―	―	22.27%	7.09%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
NDL	61 Neutral	₹4.73B	12.71	―	―	45.69%	-26.26%
KITEX	61 Neutral	₹40.95B	30.96	―	0.25%	20.41%	-6.50%
AARVEEDEN	53 Neutral	₹3.76B	19.46	―	―	-48.16%	-1.10%

Nandan Denim Limited Corporate Events

Nandan Denim Resolves Tax Litigation with Nil Demand

Nandan Denim Limited announced that the Income Tax Authority has confirmed the reduction of tax demand to nil for the assessment years 2016-17, 2017-18, and 2018-19, effectively closing the matter. This resolution is a positive development for the company, potentially easing financial and operational concerns related to the pending tax litigation, and may positively influence stakeholder confidence.