50 Paise Share Turns Gold: 715% Returns in a Multibagger Stock
New Delhi (The Uttam Hindu): Shares of Nandan Denims Limited remained the center of attraction among investors during trading on Monday. The company reported strong revenue growth for the quarter ending March 2025 (Q4FY25), due to which the shares jumped more than 4 percent in intra-day trading. At around 1 pm, the company's stock was trading at Rs 4.09, up 1.74% on the BSE.
The penny stock rose as much as 4.2 per cent to hit an intraday high of Rs 4.19 in Monday's trade. However, despite this rally, the stock is down 43 per cent from its 52-week high of Rs 7.33, which it touched in September 2024. The stock also saw a 52-week low of Rs 2.96 in March 2025. The stock was priced at just 50 paise in May 2020. In the last one year, the stock has given a meagre return of 5 per cent. In two years, the stock has gained 92 per cent, while in five years it has given multibagger returns, rising up to 755 per cent and has proved to be a great investment for investors.
The stock has gained over 13 per cent so far in May, while it gained 3.7 per cent in April and 11.4 per cent in March. Prior to this rally, the stock was under pressure and declined for five consecutive months from October 2024 to February 2025.
The company's sales for the March 2025 quarter recorded a remarkable growth of 81 per cent to Rs 1,048.65 crore as compared to Rs 579.12 crore in the same quarter last year. This strong growth reflects the company's growing market presence and strong demand for its denim products in India and internationally.
However, the company's net profit in the last quarter fell 60.79 per cent to Rs 10.63 crore from Rs 27.11 crore in the same period last year. This fall in profit despite higher revenues indicates an increase in cost pressures or a change in product mix, which has impacted margins.
Even on a yearly basis, net profit declined 25.50 per cent to Rs 33.48 crore in FY25 from Rs 44.94 crore in FY24. Nevertheless, revenue grew 76.44 per cent to Rs 3,546.68 crore in March 2025 from Rs 2,010.09 crore last year. In September 2024, Nandan Denim had announced a stock split in the ratio of 10:1, making the stock more affordable and accessible to retail investors. Earlier, in March 2022, it had issued bonus shares in the ratio of 2:1, further benefiting shareholders.