Multibagger penny stock Nandan Denim hits 5% upper circuit after Q2 results | Stock Market News

Multibagger penny stock: Shares of Nandan Denim, one of India’s leading denim suppliers, were locked in the 5% upper circuit limit at ₹5.06 apiece in afternoon deals on Monday, October 28 after the company reported a decent set of numbers for the September 2024 quarter (Q2 FY25).

The standalone revenue from operations improved to ₹850.25 crore in Q2 FY25 from ₹414 crore in the same period last year. Total income surged to ₹521 crore from ₹418 crore in Q2 FY24.

The standalone profit after tax (PAT) jumped to ₹8.7 crore in Q2 FY25, a 6% rise as compared to ₹8.2 crore in Q2 FY24. In the preceding June quarter, the company reported a net profit of ₹7.50 crore, as per the company’s Q2 earnings report. 

Nandan Denim specialises in manufacturing a wide range of textiles, with its denim business being central to its operations and generating the highest revenue. It offers a variety of denim products, including knit denim, basic denim, lightweight shirting, classical twill denim, and dobby.

The company has successfully expanded its market presence by exporting its products to over 15 countries, thereby diversifying its revenue sources and establishing a foothold in the international market.

As per recent estimates, the global denim industry is projected to grow at a CAGR of 5.81% from calendar year (CY) 2024 to CY 2032, reaching a market size of USD 111.75 billion. Growth in the North American markets is expected to lead the industry, driven by consumers’ increasing preference for contemporary denim styles.

In India, industry reports indicate a positive outlook for the denim sector, with expansion anticipated due to rising per capita income among consumers. This growth is also being shaped by various trends, including a shift towards sustainable fashion.

Additionally, the Indian government has signed a Trade and Economic Partnership Agreement (TEPA) with the European Free Trade Association in FY24. This initiative is expected to enhance textile exports and boost denim exports specifically, which bodes well for the company. 

Stock up 233% since March 2023

Since March 2023, the company’s shares have been on a strong upward trend, resulting in a remarkable gain of 233%. In September alone, the stock recorded a 44% increase, marking its largest monthly gain since July 2021. Additionally, the stock also reached an all-time high of ₹7.35 per share last month.

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