Nandan Denim Limited (NDL) AI Stock Analysis

• Market Cap: ₹3.00B
• Dividend Yield: N/A
• Average Volume (3M): 401.47K
• Price to Earnings (P/E): 35.8
• Beta (1Y): 1.55
• 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: 59 Neutral
• Price Target: ₹2.00 ▼(-32.66% Downside)
• Action: Reiterated Date: 03/24/26
• Date: Action: Reiterated 03/24/26

The score is primarily supported by solid financial performance (notably revenue growth and strong free cash flow), but is materially weighed down by weak technicals (bearish trend and negative momentum) and a relatively high P/E without dividend support.

Positive Factors

Revenue Growth

Nandan Denim's sustained revenue growth accompanied by higher gross, EBIT and EBITDA margins indicates durable demand for its fabrics and improved operational efficiency. Over a multi-month horizon this supports predictable cash generation, reinvestment capacity and stronger negotiating leverage with buyers.

Free Cash Flow Strength

Robust free cash flow and a healthy operating-cash-to-net-income ratio show effective working capital and capex management. This durable cash generation provides flexibility to pay down debt, fund capacity or weather cycles, improving long-term financial resilience and strategic optionality.

Improving Financial Leverage

A falling debt-to-equity ratio alongside growing shareholders' equity reflects improving capital structure and lower leverage risk. This structural improvement enhances balance sheet flexibility, reduces interest burden over time, and supports continued investment or working-capital resilience.

Negative Factors

Earnings Volatility

A steep reported EPS decline signals earnings volatility and a weaker ability to convert revenue into stable net income. Persistent swings in net profit can constrain reinvestment and make long-term planning harder, raising the risk that cash flow and dividend capacity could be inconsistent.

Moderate Equity Ratio

While leverage has improved, the company's equity ratio remains only moderate, leaving less of a capital buffer versus peers with stronger capitalization. This structural constraint can limit access to low-cost funding and reduce shock absorption during commodity or demand downturns.

Raw Material and Energy Exposure

As a denim fabric manufacturer, profitability is structurally exposed to cotton, yarn and energy price cycles. Without long-term hedges or contract pass-throughs, input-cost volatility can compress margins and create recurring margin risk over the medium term, affecting cash flow predictability.

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 and improving EBIT/EBITDA margins support the score, reinforced by solid free cash flow generation. Offsetting factors include moderate net profit margin, fluctuating net income, and only moderate balance sheet strength despite improving leverage.

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: 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 2.47, above the 50-day MA of 2.75, and below the 200-day MA of 3.24, indicating a bearish trend. The MACD of -0.17 indicates Positive momentum. The RSI at 22.82 is Positive, neither overbought nor oversold. The STOCH value of 7.35 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	₹52.65B	16.13	―	1.07%	14.37%	12.68%
ARVIND	69 Neutral	₹90.70B	21.31	―	1.18%	8.84%	41.74%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
NDL	59 Neutral	₹3.00B	35.76	―	―	45.69%	-26.26%
KITEX	59 Neutral	₹30.02B	-96.49	―	0.27%	20.41%	-6.50%
GOKEX	56 Neutral	₹41.29B	92.98	―	―	22.27%	7.09%