Penny stock below ₹5: Shares of penny stock Nandan Denim saw an uptick of 4.5 percent in intra-day trade on Wednesday, January 29, following the company’s robust financial performance for the quarter ended December 2024 (Q3 FY25).
Financial Performance
Nandan Denim Limited reported a significant 100.39 percent year-on-year (YoY) growth in net sales for Q3 FY25, reaching ₹926.15 crore compared to ₹462.18 crore in the same quarter of the previous year. However, despite strong revenue growth, the company’s net profit declined by 17.3 percent to ₹6.58 crore, down from ₹7.96 crore in Q3 FY24.
Earnings before interest, depreciation, and amortization (EBITDA) witnessed an 8.42 percent drop, standing at ₹30.87 crore versus ₹33.71 crore a year ago. Meanwhile, earnings per share (EPS) fell sharply to ₹0.05 from ₹0.55 in the corresponding period.
For the first nine months of FY25, the company recorded revenue of ₹2,498.03 crore, reflecting a 75 percent increase compared to ₹1,428.96 crore in the previous year. Net profit for the period stood at ₹22.85 crore, a 28 percent rise from ₹17.85 crore in Q1 FY24.
In its full-year FY24 results, Nandan Denim posted net sales of ₹2,010.1 crore, slightly lower than the ₹2,026.8 crore recorded in FY23. However, net profit surged significantly by 8,385 percent, reaching ₹45 crore from a mere ₹0.53 crore in the preceding fiscal year.
Stock Price Movement
Following the Q3 FY25 earnings announcement, Nandan Denim’s stock surged 4.5 percent to an intra-day high of ₹4.19. Despite this gain, the penny stock remains 43 percent below its 52-week high of ₹7.33, recorded in September 2024. However, it has rebounded 46.5 percent from its 52-week low of ₹2.86, registered in January 2024.
Over the past year, Nandan Denim’s stock has climbed 38 percent. However, the stock has seen a decline of 14.5 percent so far in January, marking its fourth consecutive month of losses.
