Nandan Denim Limited (NDL) AI Stock Analysis

• Market Cap: ₹3.27B
• Dividend Yield: N/A
• Average Volume (3M): 401.47K
• Price to Earnings (P/E): 35.8
• Beta (1Y): 1.57
• 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 & Margin Improvement

Sustained top-line growth coupled with rising gross, EBIT and EBITDA margins points to improving operating leverage and product mix. Over 2-6 months this supports durable cash generation, reinvestment capacity and resilience to modest demand swings in apparel markets.

Free Cash Flow Strength

Robust free cash flow reflects efficient working-capital and capex management, enabling debt reduction, funding for selective capacity upgrades, or buffer through textile cycles. Strong FCF enhances financial flexibility and funds strategic initiatives without relying on external financing.

Improving Leverage

A lower debt-to-equity ratio and rising shareholders' equity reduce financial risk and interest burden, improving credit capacity. This steadies the capital structure long-term, facilitating investment in efficiency or expansion while lowering vulnerability to higher rates.

Negative Factors

Volatile Net Income

While revenues and operating margins improved, fluctuating net income signals inconsistent bottom-line conversion, likely from variable finance or non-operating items and cost swings. This undermines earnings predictability and complicates multi-quarter planning and returns.

Declining EPS Trend

A pronounced decline in EPS despite revenue gains suggests margin pressure, one-off charges or higher non-operating costs. Continued EPS weakness can constrain reinvestment and reduce tolerance for cyclical downturns, weakening long-term profitability resilience.

Commodity & Energy Exposure

As a denim fabric manufacturer, the company faces structural input-cost volatility from cotton, yarn and energy markets. These commodity exposures can compress margins for extended periods if costs spike and B2B contracts limit pass-through, reducing earnings 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

NDL primarily makes money by manufacturing and selling denim fabric (and other textile fabrics) to business customers such as garment manufacturers, exporters, and apparel brands. Its revenue model is largely business-to-business: it procures raw materials (typically cotton/yarn and dyes/chemicals), converts them into finished fabric through spinning/weaving/processing/finishing operations (to the extent these are performed in-house versus outsourced), and sells the finished fabric in domestic and export markets. Key revenue streams therefore include (1) sales of denim fabric and (2) sales of other textile fabrics or related textile products (if produced and sold during the period). Pricing and profitability are influenced by factors such as capacity utilization, product mix (e.g., different fabric qualities/finishes), raw material price movements (notably cotton/yarn), energy and processing costs, and demand from the apparel cycle. Specific major customers, contract structures (e.g., long-term offtake agreements), or named partnerships are null.

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	38.07B	35.47B	20.10B	20.27B	21.23B	10.92B
Gross Profit	4.00B	4.15B	2.26B	753.83M	2.51B	1.57B
EBITDA	1.18B	1.28B	1.53B	909.20M	1.74B	1.03B
Net Income	378.57M	334.80M	449.70M	5.32M	676.91M	-187.18M
Balance Sheet
Total Assets	12.32B	12.74B	11.82B	12.67B	14.43B	11.83B
Cash, Cash Equivalents and Short-Term Investments	774.16M	262.66M	153.10M	108.57M	286.49M	169.28M
Total Debt	2.21B	2.49B	3.30B	4.65B	5.58B	5.53B
Total Liabilities	5.93B	6.56B	5.97B	7.27B	9.04B	7.12B
Stockholders Equity	6.40B	6.19B	5.85B	5.40B	5.39B	4.71B
Cash Flow
Free Cash Flow	404.90M	866.94M	1.86B	1.23B	488.85M	101.80M
Operating Cash Flow	454.21M	950.70M	2.30B	1.41B	1.01B	349.55M
Investing Cash Flow	-4.37M	95.62M	-497.72M	-210.81M	-554.30M	-241.27M
Financing Cash Flow	-426.35M	-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: 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 2.97 is above the 20-day moving average (MA) of 2.59, above the 50-day MA of 2.80, and below the 200-day MA of 3.28, indicating a bearish trend. The MACD of -0.15 indicates Positive momentum. The RSI at 22.95 is Positive, neither overbought nor oversold. The STOCH value of 20.07 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	₹55.73B	16.13	―	1.07%	14.37%	12.68%
ARVIND	69 Neutral	₹92.07B	21.31	―	1.18%	8.84%	41.74%
NDL	65 Neutral	₹3.27B	35.76	―	―	45.69%	-26.26%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
KITEX	59 Neutral	₹31.84B	-96.49	―	0.27%	20.41%	-6.50%
GOKEX	56 Neutral	₹42.27B	92.98	―	―	22.27%	7.09%