Check Before You Invest : Nandan Denim Ltd

Q: Which industry/sub-sector does Nandan Denim Ltd belong to?

Nandan Denim Ltd belongs to the Textiles & Apparels sector, operating specifically within the Textile segment.

Q: Is Nandan Denim Ltd a good quality company?

Nandan Denim Ltd is a average quality company, based on a somewhat consistent multi-year financial track record. This assessment is based on company’s performance on Revenue growth, ROCE, Equity and Assets, key margin ratios, cash conversion cycle, and debt to cash flow from operations and how it compares with its long term averages.

Q: Is Nandan Denim Ltd undervalued or overvalued?

Nandan Denim Ltd appears Overvalued, as its key valuation ratios are higher than their past averages. Based on the industry it operates in, the relevant valuation ratios include one of the following, P/E, P/BV, P/Sales, EV/EBITDA or a combination of two or more. Valuation Ratios. Price to Earnings, Current: 12.25, Historic Median: 11.87. Price to Book, Current: 0.65, Historic Median: 0.77. Price to Sales, Current: 0.12, Historic Median: 0.19. EV to EBITDA, Current: 5.21, Historic Median: 6.14

Q: Is Nandan Denim Ltd a good buy now?

Nandan Denim Ltd is a neutral opportunity now, based on stable price trend analysis suggesting prices may move sideways. However, you need to check its quality and valuation before making a decision

Q: Revenue growth of Nandan Denim Ltd?

Nandan Denim Ltd revenue growth is 76.4% for FY-2025, which is above its 5-year CAGR of 18.4%, indicating faster growth.

Q: Gross Profit margin of Nandan Denim Ltd?

Nandan Denim Ltd Gross profit margin which is the profit after deduction of direct costs, is 2.8% for FY-2025, which is below its 5-year median of 4.3%, indicating decreasing margins.

Q: Operating Profit Margin of Nandan Denim Ltd?

Nandan Denim Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 3.61% for FY-2025, which is below its 5-year median of 5.88% indicating decreasing margins.

Q: Net Profit Margin of Nandan Denim Ltd?

Nandan Denim Ltd Net Profit Margin is 0.94% for FY-2025, is in line with its 5-year median of 0.94%, indicating stable margins. Profitability Metrics. Gross Profit Margin (%), Current: 2.8, Historic Median: 4.3. Operating Profit Margin (%), Current: 3.61, Historic Median: 5.88. Net Profit Margin (%), Current: 0.94, Historic Median: 0.94

Q: Return on Asset of Nandan Denim Ltd?

Nandan Denim Ltd Return on Asset is 2.7%, which is in line with its 5-year historical median of 2.7%, indicating stable asset utilization efficiency.

Q: Return on capital employed (ROCE) of Nandan Denim Ltd?

Nandan Denim Ltd Return on capital employed is 9.27% for FY-2025, which is in line with its 5-year historical median of 9.27%. The current ROCE is below its estimated weighted average cost of capital (WACC) of 14%, indicating value preservation.

Check Before You Invest : Nandan Denim Ltd

BSE: 532641 NSE: NDL ISIN: INE875G01048

| Sector: Textiles & Apparels | Industry: Textile

Snapshot

Q.1 Which industry/sub-sector does Nandan Denim Ltd belong to?

Nandan Denim Ltd belongs to the Textiles & Apparels sector, operating specifically within the Textile segment.

Q.2 Is Nandan Denim Ltd a good quality company?

Nandan Denim Ltd is a average quality company, based on a somewhat consistent multi-year financial track record.

This assessment is based on company’s performance on Revenue growth, ROCE, Equity and Assets, key margin ratios, cash conversion cycle, and debt to cash flow from operations and how it compares with its long term averages.

Q.3 Is Nandan Denim Ltd undervalued or overvalued?

Nandan Denim Ltd appears Overvalued, as its key valuation ratios are higher than their past averages.

Based on the industry it operates in, the relevant valuation ratios include one of the following, P/E, P/BV, P/Sales, EV/EBITDA or a combination of two or more.

Valuation Ratios	Current	5-year Historic Median
Price to Earnings	12.25	11.87
Price to Book	0.65	0.77
Price to Sales	0.12	0.19
EV to EBITDA	5.21	6.14

Q.4 Is Nandan Denim Ltd a good buy now?

Nandan Denim Ltd is a neutral opportunity now, based on stable price trend analysis suggesting prices may move sideways. However, you need to check its quality and valuation before making a decision

Performance Analysis

We have analysed the performance of the company on the following:

How has it performed on generating Profits?
By checking its Revenue growth, Gross, Operating and Net Margins compared to its last 5-year median.
How efficiently has it utilized Capital?
By checking its ROCE, ROA, ROE and its Cash Conversion Cycle.
How is it managing its Debt?
By checking its Debt to Equity and Cash Flow from Operations.

A: What are the trends in revenue and profit margins?

Q.1 Revenue growth of Nandan Denim Ltd?

Nandan Denim Ltd revenue growth is 76.4% for FY-2025, which is above its 5-year CAGR of 18.4%, indicating faster growth.

Q.2 Gross Profit margin of Nandan Denim Ltd?

Nandan Denim Ltd Gross profit margin which is the profit after deduction of direct costs, is 2.8% for FY-2025, which is below its 5-year median of 4.3%, indicating decreasing margins.

Q.3 Operating Profit Margin of Nandan Denim Ltd?

Nandan Denim Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 3.61% for FY-2025, which is below its 5-year median of 5.88% indicating decreasing margins.

Q.4 Net Profit Margin of Nandan Denim Ltd?

Nandan Denim Ltd Net Profit Margin is 0.94% for FY-2025, is in line with its 5-year median of 0.94%, indicating stable margins.

	Current Level	5-year Historic Median
Gross Profit Margin (%)	2.8	4.3
Operating Profit Margin (%)	3.61	5.88
Net Profit Margin (%)	0.94	0.94

B: Does the business utilize capital efficiently?

Q.5 Return on Asset of Nandan Denim Ltd?

Nandan Denim Ltd Return on Asset is 2.7%, which is in line with its 5-year historical median of 2.7%, indicating stable asset utilization efficiency.

Q.6 Return on capital employed (ROCE) of Nandan Denim Ltd?

Nandan Denim Ltd Return on capital employed is 9.27% for FY-2025, which is in line with its 5-year historical median of 9.27%. The current ROCE is below its estimated weighted average cost of capital (WACC) of 14%, indicating value preservation.

Q.7 Return on Equity (ROE) of Nandan Denim Ltd?

Nandan Denim Ltd Return on equity is 5.56% for FY-2025, which is in line with its 5-year historical median of 5.56%, indicating the business is making similar use of its shareholders capital.

Q.8 Cash conversion cycle of Nandan Denim Ltd?

Nandan Denim Ltd Cash conversion cycle is 44 days, below its 5-year historical median of 71 days, indicating improved working capital management. However, you need to compare this with its peers in the industry.

	Current Level	5-year Historic Median
Asset Turnover (x)	2.88	1.63
ROE (%)	5.56	5.56
ROCE (%)	9.27	9.27
Cash Conversion Cycle	44 days	71 days

C: How much debt does the business have and is it at a sustainable level?

Q.9 Debt to Equity ratio of Nandan Denim Ltd?

Nandan Denim Ltd Debt-to-Equity ratio is 0.40, which is lower the industry average of 0.42, indicating lower debt levels in the industry.

Q.10 Debt to cash flow from operations of Nandan Denim Ltd?

Nandan Denim Ltd Debt to cash flow from operations is 2.62, which is at a moderate level.

Ownership & governance

D: Promoter shareholding and pledge status of Nandan Denim Ltd?

Q.1 Promoter shareholding and pledge status of Nandan Denim Ltd?

Promoters hold 51.01% of the Nandan Denim Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

E: How does Nandan Denim Ltd performance compare with that of its Peers?

Q.1 Revenue growth of Nandan Denim Ltd vs industry peers?

Nandan Denim Ltd revenue CAGR is 18.40%, compared to the industry median CAGR of 0.00%, indicating faster growth and gaining its market share.

Profit Metrics

	Current Level	5-year Industry Median
Revenue Growth (%)	76.4	0
Gross Profit Growth (%)	-6.6	9.1
Operating Profit Growth (%)	8.5	8.5
Net Profit Growth (%)	-26.7	13

Operating Efficiency

	Current Level	5-year Industry Median
Asset Turnover (x)	2.88	0.95
ROE (%)	5.56	4.25
ROCE (%)	9.27	7.55
Cash Conversion Cycle (days)	44.17	102

Valuation & price assessment

Q.1 Stock return of Nandan Denim Ltd over the last decade?

Over the last 9 year(s), the stock has delivered a CAGR of -4.4% based on the current price.

	9Y	5Y	3Y	1Y
Share Price CAGR	-4.4%	10.4%	10%	-20.2%

Q.2 Valuation ratios of Nandan Denim Ltd vs historical?

The current P/E ratio of 12.25 is in line with than its historical median of 11.87, indicating that the stock is trading near its historical average valuation.

Q.3 How do the current valuation ratios compare with 5-year historical median and industry numbers?

Valuation Ratios	Current	5-year Historic Median	5-year Industry Median
Price to Earnings	12.25	11.87	20.16
Price to Book	0.65	0.77	1.32
Price to Sales	0.12	0.19	1.06
EV to EBITDA	5.21	6.14	9.31

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Check Before You Invest : Nandan Denim Ltd

Snapshot

Performance Analysis

Ownership & governance

Peer comparison (industry-wise, mcap)

Profit Metrics

Operating Efficiency

Valuation & price assessment

Check more companies

Check trending companies

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