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10:1 stock split & FIIs bought 1,73,163 shares: Multibagger penny stock under Rs 55 jumps over 7 per cent as company reports a 405 per cent jump in net profit!
Kiran Shroff

10:1 stock split & FIIs bought 1,73,163 shares: Multibagger penny stock under Rs 55 jumps over 7 per cent as company reports a 405 per cent jump in net profit!

From Rs 18.80 (52-week low) to Rs 50.21 per share, the stock gave multibagger returns of 167 per cent.

Today, shares of Nandan Denims Ltd jumped 7.24 per cent to Rs 50.21 per share from its previous closing of Rs 46.82. The stock’s 52-week high is Rs 57.95 and its 52-week low is Rs 18.80.

Nandan Denim Ltd (NDL), a cornerstone of the Chiripal Group since its inception in 1994, has evolved from a textile trading enterprise into a global denim powerhouse. Today, it stands as India's premier and the world's fourth-largest denim manufacturer, catering to a vast customer base across 27 countries and major Indian retailers. NDL's expansive product range, encompassing over 2,000 annual denim variations, shirting fabrics, and sustainable organic cotton yarn, is complemented by a robust in-house R&D department dedicated to driving textile innovation.

According to Quarterly Results, the total income increased by 30 per cent to Rs 723.86 crore and net profit skyrocketed by 405 per cent to Rs 11.31 crore in Q1FY25 compared to Q1FY24. In its annual results, the company reported net sales of Rs 2,010.1 crore in FY24 compared to Rs 2,026.8 crore in FY23 while net profit increased by 8,385 per cent to Rs 45 crore compared to Rs 0.53 crore in FY23.

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Nandan Denim Ltd (NDL) has announced a 10-for-1 stock split. This means each existing Rs. 10 share will be divided into ten new Re. 1 shares. The specific date for determining shareholders eligible for the split (record date) will be announced by the company soon.

Nandan Denims has a market cap of over Rs 700 crore. As of June 2024, the maximum share is owned by the promoter of the company (58.46 per cent). In June 2024, FIIs bought 1,73,163 shares and increased their stake to 0.60 per cent compared to 0.48 per cent in March 2024. The shares of the company have a PE of 16.2x whereas the industry PE is 32x. From Rs 18.80 (52-week low) to Rs 50.21 per share, the stock gave multibagger returns of 167 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. 

Also Read: Debt-free penny stock under Rs 10 hit upper circuit as company is into expansion Europe, Middle-East and Africa (EMEA) and Asia-Pacific (APAC) markets!

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