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Nandan Denim Limited
(NDL)
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Rating:69Neutral
Price Target:
₹3.50
▲(52.17% Upside)
Action:Reiterated
Date:08/25/26
The score is driven primarily by improved financial stability and cash generation (low leverage and strong free-cash-flow conversion), partially offset by weaker operating fundamentals (FY2026 revenue drop and thin/compressing margins). Technicals are supportive with price above major moving averages, but the overbought RSI tempers near-term confidence; valuation appears reasonable at ~11.7x earnings but lacks dividend support.
Positive Factors
Low Leverage and Stronger Balance Sheet
The substantial reduction in leverage improves financial flexibility and lowers balance-sheet risk. A stronger equity base also gives NDL greater capacity to withstand textile-cycle volatility and fund operations without relying heavily on new borrowing.
Negative Factors
Sharp Revenue Contraction
The steep annual revenue decline points to unstable demand or volumes in NDL’s denim markets. A choppy top-line profile can reduce plant utilization, weaken operating leverage and make sustained earnings growth harder to achieve.
Read all positive and negative factors
Positive Factors
Negative Factors
Low Leverage and Stronger Balance Sheet
The substantial reduction in leverage improves financial flexibility and lowers balance-sheet risk. A stronger equity base also gives NDL greater capacity to withstand textile-cycle volatility and fund operations without relying heavily on new borrowing.
Read all positive factors
Nandan Denim Limited (NDL) vs. iShares MSCI India ETF (INDA)
Market Cap
₹4.08B
Dividend Yield17.01%
Average Volume (3M)388.58K
Price to Earnings (P/E)10.9
Beta (1Y)1.46
Revenue Growth-36.83%
EPS Growth-1.24%
CountryIN
Employees2,078
SectorGeneral
Sector StrengthN/A
IndustryManufacturing - Textiles
Share Statistics
EPS (TTM)0.26
Shares Outstanding1,441,471,700
10 Day Avg. Volume888,572
30 Day Avg. Volume388,577
Financial Highlights & Ratios
PEG Ratio0.00
Price to Book (P/B)0.41
Price to Sales (P/S)0.09
P/FCF Ratio1.98
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
Nandan Denim Limited Business Overview & Revenue Model
Company Description
Headquartered in Ahmedabad, India, Nandan Denim Limited, founded in 1994, is a textile producer focused on the creation and distribution of denim, along with various denim, shirting, and cotton fabrics, as well as yarns. Beyond its domestic operat...
How the Company Makes Money
NDL primarily makes money by manufacturing and selling denim fabric to customers in the apparel supply chain (e.g., garment manufacturers, exporters, and brands). Revenue is generated from (1) sale of denim and other fabric products, typically pri...
Nandan Denim Limited Financial Statement Overview
Summary
Income Statement
54
Neutral
Balance Sheet
72
Positive
Cash Flow
78
Positive
| Breakdown | TTM | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 24.47B | 28.72B | 35.47B | 20.10B | 20.27B | 21.23B |
| Gross Profit | 2.57B | 2.24B | 4.15B | 2.26B | 753.83M | 2.51B |
| EBITDA | 837.22M | 1.04B | 1.28B | 1.53B | 909.20M | 1.74B |
| Net Income | 367.25M | 331.28M | 334.80M | 449.70M | 5.32M | 676.91M |
Balance Sheet | ||||||
| Total Assets | 0.00 | 10.32B | 12.74B | 11.82B | 12.67B | 14.43B |
| Cash, Cash Equivalents and Short-Term Investments | 237.03M | 237.03M | 262.66M | 153.10M | 108.57M | 286.49M |
| Total Debt | 0.00 | 1.18B | 2.49B | 3.30B | 4.65B | 5.58B |
| Total Liabilities | -6.51B | 3.80B | 6.56B | 5.97B | 7.27B | 9.04B |
| Stockholders Equity | 6.51B | 6.51B | 6.19B | 5.85B | 5.40B | 5.39B |
Cash Flow | ||||||
| Free Cash Flow | 404.90M | 1.34B | 866.94M | 1.86B | 1.23B | 488.85M |
| Operating Cash Flow | 454.21M | 1.39B | 950.70M | 2.30B | 1.41B | 1.01B |
| Investing Cash Flow | -4.37M | -23.65M | 95.62M | -497.72M | -210.81M | -554.30M |
| Financing Cash Flow | -426.35M | -1.36B | -1.17B | -1.69B | -1.45B | -342.49M |
Nandan Denim Limited Technical Analysis
Positive
2.30
Price Trends
2.48
Positive
2.58
Positive
2.69
Positive
Market Momentum
0.13
Negative
61.39
Neutral
27.31
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:NDL, the sentiment is Positive. The current price of 2.3 is below the 20-day moving average (MA) of 2.64, below the 50-day MA of 2.48, and below the 200-day MA of 2.69, indicating a bullish trend. The MACD of 0.13 indicates Negative momentum. The RSI at 61.39 is Neutral, neither overbought nor oversold. The STOCH value of 27.31 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for IN:NDL.
Nandan Denim Limited Peers Comparison
UnderperformOutperform
Sector (55)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
69 Neutral | ₹4.08B | 10.86 | ― | 17.01% | -36.83% | -1.24% | |
66 Neutral | ₹150.59B | 34.97 | ― | 0.81% | 15.21% | 12.58% | |
61 Neutral | ₹57.87B | 56.13 | ― | 0.13% | 7.65% | -41.72% | |
55 Neutral | $6.65B | 3.83 | -15.92% | 6.20% | 10.91% | 7.18% | |
46 Neutral | ₹274.53M | -20.30 | ― | ― | -12.45% | -127.04% | |
45 Neutral | ₹49.36B | 104.94 | ― | 1.92% | -25.55% | -99.34% | |
42 Neutral | ₹25.70B | -107.38 | ― | 0.39% | -36.44% | -118.03% |
* General Sector Average
IN:NDL
Nandan Denim Limited
2.83
-0.71
-20.06%
IN:ARVIND
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553.55
260.60
88.95%
IN:GOKEX
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789.70
23.80
3.11%
IN:KITEX
Kitex Garments Limited
128.80
-63.38
-32.98%
IN:RAYMOND
Raymond Limited
741.50
134.05
22.07%
IN:SGL
STL Global Limited
10.00
-3.50
-25.93%
Nandan Denim Limited Corporate Events
Nandan Denim Buys 6.1% Stake in Renewable Energy SPV for Captive Power
Jul 14, 2026
Nandan Denim Limited has entered into a Share Transfer cum Shareholders’ Agreement with special purpose vehicle Opera Vayu (Narmada) Private Limited and project implementer Shivman Wind Energy Private Limited to procure wind and solar power ...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.