Low PE multibagger textile stock under Rs 40: Company announces stellar FY24 results; PAT zooms over 8,000 per cent

From Rs 17.26 (52-week low) to Rs 43.79 per share, the stock gave multibagger returns of over 150 per cent.

Nandan Denim Ltd (NDL), a subsidiary of the Chiripal Group founded in 1994, has grown from textile trading to become India's largest and the world's fourth-biggest denim fabric maker. They manufacture a wide variety of fabrics including over 2,000 denim products annually, shirting with diverse options, and yarn including eco-friendly organic cotton. Supplying to over 27 countries and major Indian retailers, Nandan Denim boasts a massive production capacity and even has in-house research and development to constantly innovate and improve its textile offerings.

According to Quarterly Results, the net sales increased by 26.7 per cent to Rs 579.12 crore and net profit increased by 881.1 per cent to Rs 27.11 crore in Q4FY24 compared to Q4FY23. In its annual results, the company reported net sales of Rs 2,010.09 crore in FY24 compared to net sales of Rs 2,026.76 crore in FY23. In FY24, the net profit skyrocketed by 8,385 per cent to Rs 44.97 crore compared to Rs 0.53 crore in FY23.

Today, shares of Nandan Denims Ltd gained 17.31 per cent to Rs 43.79 per share from its previous closing of Rs 37.33 with an intraday high of Rs 43.79 and an intraday low of Rs 40.51. The stock’s 52-week high is Rs 48.50 while its 52-week low is Rs 17.26. The shares of the company saw a spurt in volume by more than 6 times on BSE.

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Nandan Denims has a market cap of over Rs 600 crore. The maximum share is owned by the promoter of the company (64.74 per cent) and the rest is by FIIs, DIIs and the general public. Furthermore, promoters have held a constant 64.87 per cent stake in the company for the past 6 years.

The shares of the company have a PE of 12x whereas the industry PE is 32x. From Rs 17.26 (52-week low) to Rs 43.79 per share, the stock gave multibagger returns of over 150 per cent. Investors should keep an eye on this textile stock under the radar.

Disclaimer: The article is for informational purposes only and not investment advice.