Nandan Denim Ltd – Analyst Meet Update By IndiaNivesh & Nirmal Bang

IndiaNivesh: At CMP of Rs 97, the stock trades at PE and EV/EBITDA 5.8x and 3.3x of its FY17E Bloomberg consensus estimates respectively. The company is on an expansion mode till FY16E which will start showing results from FY17E. It would be the largest manufacturer of denim in the country. It is likely to manufacture shirting with premium quality. Profitability of the company is likely to increase. Key risk includes high leverage, equity dilution and any sharp volatility in cotton prices. We do not have any formal rating on the stock.

Nandan_Denim_Limited_Analyst_Meet_Update_25062015

Nirmal Bang: Nandan Denim (NDL) is second-largest denim manufacturing company in India and is a part of the Chiripal Group, a leading business conglomerate. NDL commenced its operations in 1994 with textile trading and forayed into textile manufacturing in 2004. The company manufactures denim, cotton fabrics and khaki cloth. It also has fully integrated facilities for manufacturing a range of products viz. woven fabrics, circular knitted fabrics, polar fleece fabrics, cotton hosiery, denim, etc. We attended the analyst meet organised recently by NDL to know the company’s business plans and prospects. Mr. Deepak Chiripal, director, and Mr. Govind Sharda, president, were present. Key highlights are as follows:

Nandan Denims-Analyst Meet Update- 26 June 2015