- Nandan Denim share price surged 17% on Tuesday following the company’s impressive Q4 performance.
- The company’s net profit for Q4 climbed by 882.25% to ₹27.11 crore, compared to ₹2.76 crore in the same quarter last year.
- Sales grew by 26.68% to ₹579.12 crore in Q4 2024 compared to ₹457.16 crore in Q4 2023.
Nandan Denim’s stock price surged 17% after a stellar Q4 performance, with net profit soaring by 882.25% and sales increasing by 26.68%.
Q4 Financial Performance Highlights
Nandan Denim’s Q4 financial results have been nothing short of remarkable. The company’s net profit for the quarter ending March 2024 surged by an astounding 882.25% to ₹27.11 crore, up from ₹2.76 crore in the same period last year. This significant increase in profitability can be attributed to a combination of higher sales volumes and improved operational efficiencies. Sales for the quarter also saw a notable increase of 26.68%, reaching ₹579.12 crore compared to ₹457.16 crore in Q4 2023.
Annual Performance and Market Reaction
For the full fiscal year ending March 2024, Nandan Denim reported a net profit spike of 8384.91% to ₹44.97 crore, a dramatic rise from ₹0.53 crore in the previous fiscal year. However, annual sales saw a slight decline of 0.82%, totaling ₹2010.09 crore compared to ₹2026.76 crore in the previous year. Despite this minor dip in annual sales, the market reacted positively to the company’s robust quarterly performance, with the stock price closing 8.36% higher at ₹40.45 per share on the BSE.
Analyst Insights and Future Outlook
According to Dr. Ravi Singh, SVP – Retail Research at Religare Broking Ltd, Nandan Denim Ltd has shown strong technical indicators. “The stock has been consistently forming higher highs, indicating positive momentum. It is trading well above all major moving averages, and momentum indicators like the RSI are signaling strength. Considering these factors, the stock has the potential to reach ₹45–₹46 levels in the near term,” he stated.
Market Mojo’s research report also highlights Nandan Denim’s impressive performance, noting that the stock has generated 92.99% returns in the last year and has outperformed the BSE 500 over the past three years, one year, and three months. The report categorizes the textile stock as being in a mildly bullish range, with a market cap of ₹619 crore.
Company Background and Strategic Positioning
Founded in 1994 as a textile trade company, Nandan Denim Ltd is a subsidiary of the Chiripal Group and is currently the largest denim fabric producer in India and the fourth largest globally. The company produces a broad range of textiles, including over 2,000 denim items annually, various shirting materials, and yarn made from organic cotton. Nandan Denim’s extensive manufacturing capacity and in-house research and development enable continuous innovation and enhancement of its textile offerings. The company supplies major Indian retailers and exports to over 27 countries.
Conclusion
Nandan Denim’s impressive Q4 performance has significantly boosted investor confidence, as evidenced by the recent surge in its stock price. With strong technical indicators and positive analyst outlooks, the company appears well-positioned for continued growth. Investors should keep an eye on Nandan Denim’s future developments, as the company continues to leverage its robust manufacturing capabilities and innovative product offerings to maintain its market leadership.
