Share Market Update – Nandan Denim Share Price Target 2025

Nandan Denim Share Price Target 2025:- ​​​​​​Nandan Denim Limited, established in 1994 and headquartered in Ahmedabad, Gujarat, is a leading textile manufacturer specializing in denim, shirting fabrics, and yarn. As part of the Chiripal Group, the company has grown to become India’s largest and the world’s fourth-largest integrated denim fabric producer, with a manufacturing capacity of 110 million meters per annum. Nandan Denim operates state-of-the-art facilities in Piplej and Bareja, Gujarat, and exports its products to over 27 countries. Nandan Denim Share Price on NSE as of 2 May 2025 is 3.63 INR.

Nandan Denim Ltd: Current Market Overview

• Open: 3.75
• High: 3.75
• Low: 3.60
• Mkt cap: 526.14Cr
• P/E ratio: 10.51
• Div yield: N/A
• 52-wk high: 7.35
• 52-wk low: 3.05

Nandan Denim Share Price Chart

Nandan Denim Share Price Target 2025 (Prediction)

Nandan Denim Shareholding Pattern

• Promoters: 51.01%
• FII: 0.58%
• DII: 1.25%
• Public: 47.15%

Key Factors Affecting Nandan Denim Share Price Growth

Here are five key factors influencing the growth of Nandan Denim Ltd. (NSE: NDL) and its share price target for 2025:

1. Robust Profit Growth in FY 2023–24
   Nandan Denim demonstrated significant financial improvement in the fiscal year 2023–24. The company’s Profit Before Tax (PBT) surged to ₹65.12 crore from ₹5.14 crore in the previous year, and Profit After Tax (PAT) increased to ₹44.96 crore from ₹0.53 crore. This substantial growth indicates enhanced operational efficiency and cost management.

2. Strategic Debt Reduction
   The company has made concerted efforts to reduce its debt burden. Long-term borrowings decreased from ₹162.81 crore in FY 2023 to ₹96.32 crore in FY 2024, reflecting a commitment to strengthening the balance sheet and improving financial stability.

3. Capacity Expansion Initiatives
   Nandan Denim has been actively expanding its production capacity. The company planned to increase its denim production capacity to 110 million meters per annum, aiming to become the country’s largest denim producer. Such expansion positions the company to meet growing market demand and enhance revenue streams.

4. Undervalued Stock with Growth Potential
   Analysts have identified Nandan Denim’s stock as undervalued. The intrinsic value is estimated at ₹10 per share, compared to the current market price of ₹3.64, suggesting a potential upside of approximately 64%. This valuation indicates room for share price appreciation as the company’s fundamentals strengthen.

5. Positive Return on Capital Employed (ROCE) Trends
   The company has shown promising trends in ROCE, with earnings before interest and tax (EBIT) increasing while capital employed remains stable. This improvement suggests more efficient use of capital, which could attract investor interest and support share price growth.

Risks and Challenges for Nandan Denim Share Price

Here are five key risks and challenges that could impact the share price target of Nandan Denim Ltd. (NSE: NDL) in 2025:

1. Declining Profit Margins Despite Revenue Growth
   While Nandan Denim reported a significant increase in net sales, reaching ₹926.15 crore in Q3 FY25, the company faced a 17.3% decline in net profit during the same period. This indicates that rising operational costs may be eroding profitability, posing a challenge to sustainable growth.

2. High Debt Levels and Interest Coverage Concerns
   The company’s debt-to-EBITDA ratio stands at 6.49 times, and its EBIT covers interest expenses only 2.6 times. These figures suggest that servicing debt could become increasingly burdensome, especially if earnings do not improve, potentially impacting financial stability.

3. Weak Long-Term Fundamentals
   Analysts have downgraded Nandan Denim’s stock to a “strong sell” due to weak long-term fundamentals, including a low Return on Capital Employed (ROCE) of 6.64%. Such indicators reflect challenges in generating adequate returns on investments, which may deter potential investors.

4. Technical Indicators Signaling Bearish Trends
   A double top formation identified in April 2025 suggests a potential price decline of approximately 4.87%, indicating bearish market sentiment. Such technical patterns can influence investor behavior and contribute to share price volatility.

5. Industry-Wide Challenges and Competitive Pressures
   The denim industry in India has faced revenue declines, with leading manufacturers like Arvind Ltd. and Jindal Worldwide Ltd. reporting decreased revenues in FY24. Nandan Denim, operating in this competitive landscape, may encounter challenges in maintaining market share and profitability amidst industry-wide pressures.

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