Nandan Denim Shares Jump Over 4% Post Q4 Results Despite Profit Dip

Nandan Denim Shares Jump Over 4% Post Q4 Results Despite Profit Dip

Market Reaction

Nandan Denim shares surged over 4.2% on Monday, May 26, 2025, reaching an intraday high of ₹4.19. Despite this upward trend, the penny stock remains 43% below its 52-week high of ₹7.33, recorded in September 2024. It had previously hit a 52-week low of ₹2.96 in March 2025.

Over the past year, Nandan Denim shares have delivered a slight overall gain of 5%, reflecting relatively stable price movement. However, from a longer-term perspective, the stock has delivered impressive returns:

  • 92% gain over two years

  • 755% multi-bagger return over five years

Recent monthly performance:

  • May 2025: +13%

  • April 2025: +3.7%

  • March 2025: +11.4%

These recent gains follow a five-month downtrend observed between October 2024 and February 2025.

Quarterly Results Drive Interest

Investor interest was reignited after the company announced its Q4 FY25 results, showing robust top-line growth despite a decline in net profit.

Revenue

  • ₹1,048.65 crore in Q4 FY25
  • Up 81% from ₹579.12 crore in Q4 FY24

Net Profit

  • ₹10.63 Crore in Q4 FY25
  • Down 60.79% from ₹27.11 Crore in Q4 FY24

Full-Year Financial Performance (FY25)

While profits declined year-over-year, revenue saw substantial growth:

Revenue

  • FY25: ₹3,546.68 Crore
  • FY24: ₹2,010.09 Crore
  • Growth: 76.44%

Net Profit

  • FY25: ₹33.48 Crore
  • FY24: ₹44.94 Crore
  • Decline: 25.50%

Company Overview

Founded in 1994, Nandan Denim is part of the Ahmedabad-based Chiripal Group. It has grown from a textile trading firm into India's most prominent and the world's fourth-largest denim fabric manufacturer.

Key facts:

  • Operates in over 27 countries
  • Major exporter and domestic supplier
  • Holds a dominant position in India's denim supply chain

Corporate Actions

  • Stock Split (10:1) – September 2024
  • Bonus Issue (2:1) – March 2022

These actions made Nandan Denim shares more accessible and enhanced shareholder value.

Summary

Nandan Denim shares gained traction after reporting strong revenue growth in Q4 FY25. While net profit saw a significant dip, the company's robust sales performance and improving stock trend helped lift investor sentiment.

Despite short-term fluctuations, long-term investors have seen multi-fold returns from this penny stock. As it expands its footprint globally, Nandan Denim remains a notable name in the Indian textile sector.

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