Promoter sold 25,00,000 shares of this multibagger penny stock under Rs 50; Board announces stock split of equity shares!

From Rs 17.26 (52-week low) to Rs 48.26 per share, the stock gave multibagger returns of 179 per cent.

On Friday, shares of Nandan Denims Ltd plunged 7.46 per cent to Rs 48.26 per share from its previous closing of Rs 52.15 with an intraday high of Rs 53.79 and an intraday low of Rs 47.70. The stock’s 52-week high is Rs 57.95 and its 52-week low is Rs 17.26.

The promoter of the company (Chiripal Exim LLP, Promoter Group) sold 25,00,000 shares or 1.73 per cent stake in the company in the open market on June 20, 2024.  

Additionally, the board of directors at Nandan Denim Ltd (NDL) approved a 1:10 stock split for their equity shares. This means that each existing share with a face value of Rs. 10 will be subdivided into 10 new shares with a face value of Re. 1 each. The company will announce the record date for this stock split on the stock exchanges in due course.

Founded in 1994 as part of the Chiripal Group, Nandan Denim Ltd (NDL) has transformed from a textile trading company into a global leader in denim fabric production. Today, NDL stands as India's largest and the world's fourth-biggest denim manufacturer, boasting a massive production capacity that supplies over 27 countries and major Indian retailers. Their extensive product portfolio includes not only over 2,000 denim varieties annually but also diverse shirting options and eco-conscious organic cotton yarn. Furthermore, Nandan Denim prioritizes continuous innovation through its in-house research and development department, ensuring its textile offerings remain at the cutting edge.

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While Nandan Denim Ltd reported a slight dip in annual net sales from FY23 to FY24, going from Rs 2,026.76 crore to Rs 2,010.09 crore, profitability soared year-on-year. In FY24, net profit saw a dramatic increase of 8,385 per cent to Rs 44.97 crore, compared to just Rs 0.53 crore in FY23. This positive trend continued into Q4FY24, with net sales rising 26.7 per cent to Rs 579.12 crore and net profit experiencing a staggering 881.1 per cent growth to Rs 27.11 crore, compared to the same quarter in the previous fiscal year.

Nandan Denims has a market cap of Rs 695 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. The shares of the company have a PE of 15x whereas the industry PE is 32x. From Rs 17.26 (52-week low) to Rs 48.26 per share, the stock gave multibagger returns of 179 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.