Shares of Nandan Denim, a penny stock trading under ₹5, jumped over 4 percent in intra-day trading on Monday, May 26, after the company posted strong revenue growth for the quarter ended March 2025 (Q4FY25). The upbeat top-line performance reignited investor interest despite a notable decline in profitability.
Q4, FY25 Earnings
Nandan Denim reported a sharp 81 percent surge in sales for the March 2025 quarter, with revenue climbing to ₹1,048.65 crore, compared to ₹579.12 crore in the same quarter last year. This strong growth underscores the company’s expanding market presence and robust demand for its denim products both in India and internationally.
However, the bottom line failed to keep pace. The company’s net profit for the quarter declined by 60.79 percent to ₹10.63 crore from ₹27.11 crore in the corresponding period of the previous year. The decline in profit despite higher revenue suggests increased cost pressures or changes in the product mix that impacted margins.
On an annual basis, net profit also dipped 25.50 percent, falling to ₹33.48 crore in FY25 from ₹44.94 crore in FY24. Yet, revenue for the year ended March 2025 rose substantially, up 76.44 percent to ₹3,546.68 crore, compared to ₹2,010.09 crore in the previous year.
Corporate Actions and Historical Milestones
The company has taken several shareholder-friendly initiatives in recent years. In September 2024, Nandan Denim announced a stock split in a 10:1 ratio, making the stock more affordable and accessible to retail investors. Earlier, in March 2022, it had issued bonus shares in a 2:1 ratio, further rewarding shareholders.
Founded in 1994, Nandan Denim is part of the Ahmedabad-based Chiripal Group and has grown to become India’s largest and the world’s fourth-largest denim fabric manufacturer. What began as a textile trading business has evolved into a vertically integrated denim powerhouse with global operations. Today, it exports to over 27 countries and counts several top retailers among its clients. Domestically, the company holds a dominant position in the denim supply chain.
Nandan Denim Stock Performance
The penny stock climbed as much as 4.2 percent in Monday’s session, touching an intraday high of ₹4.19. Despite the rally, it remains 43 percent below its 52-week high of ₹7.33, which it touched in September 2024. The stock also hit a 52-week low of ₹2.96 in March 2025.
Over the past year, the stock has delivered a modest 5 percent return, reflecting a largely flat trajectory. However, a broader time-frame paints a more optimistic picture. Over two years, the stock has surged 92 percent, while in five years, it has given multibagger returns, skyrocketing by 755 percent—offering substantial wealth creation for long-term investors.
The recent uptrend has also been noteworthy. The stock has gained more than 13 percent so far in May, following a 3.7 percent rise in April and an 11.4 percent increase in March. Prior to this rally, the counter had been under pressure, declining for five straight months from October 2024 through February 2025.
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