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Nandan Denim Limited (NDL) Fair Value & Analysis

Consumer Cyclical · IN · Market cap ₹3.9B (≈ $41.6M) · ISIN INE875G01030

What is Nandan Denim Limited really worth?

ND Nandan Denim Limited NDL · BSE
Price₹2.83
Fair Value₹4.92
Upside+73.9%
Quality54/100

A solid business, trading 42% below our fair value of ₹4.92.

As of Aug 22, 2026, the fair value of Nandan Denim Limited is ₹4.92 per share against a price of ₹2.83, so the fair value sits 74% above the price. A model estimate blended from multiple valuation models, recalculated regularly.

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Strengths

Low debt · generates free cash flow

Risks

!Mixed Growth (revenue 5y +21.9 %/yr)
!Thin margins · 1.5% net margin
!Narrow moat 25/100
!Evidence only low, so the estimate is less certain
Evidence: Low Range ₹3.49 – ₹6.32

Fair value as of: Aug 22, 2026

From 26 valuation models · updated 15 days ago

Share price +18.9% over the past month.

What runs behind every stock

69 individual criteria per stock, every one traceable See the method →

What matters now

  • The price is below even our cautious bear case (₹3.49). The market is more pessimistic than our downside scenario.
  • The large gap to fair value rests on thin data (low evidence): fewer applicable models and a shorter history. Read it with extra caution.
  • Solid quality (54/100) at a price below fair value, the discount is the argument here, not the business quality.
  • A fairly wide model range (₹3.49 to ₹6.32) leaves room in how you read the outcome.

Price vs Fair Value (5 years)

₹7.22 ₹1.45 Fair Value ₹4.92 May 2021 Sep 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Aug 22, 2026.

How to read this chart

60‑month range ₹1.45 – ₹7.22 · fair‑value band ₹3.49 – ₹6.32 · the ₹2.83 price screens below the ₹4.92 fair value. Dashed = 300-day average. As of Aug 22, 2026.

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Analysis

Nandan Denim Limited (NDL) currently trades at ₹2.83, while our model-based Fair Value estimate is ₹4.92, implying the stock looks roughly 42.5% undervalued today. The Quality Score stands at 54/100 (solid quality), in the Consumer Cyclical sector. Bull case: the DCF Models group reads highest at a median of ₹9.60 per share, and 20 of the 26 models we run sit above the ₹2.83 price. Bear case: the Earnings-Based group reads lowest at ₹1.94, and 6 of the 26 models stay below the price. Evidence for this calculation is low.

Over the trailing twelve months, Nandan Denim Limited generated revenue of ₹24.5B at a net margin of 1.5%. Revenue declined 40.6% year over year. It earns a return on equity of 5.2%. Net debt stands at ₹1.1B. Fundamentals as of Aug 22, 2026

Our scenario range runs from ₹3.49 (bear case) to ₹6.32 (bull case); at ₹2.83, the current price sits below that range. Bear and bull are the same models run on conservative and optimistic assumptions (margins, growth, valuation multiples), so a plausible valuation range, not a price target. The share trades about 24% below its 52-week high and 57% above its 52-week low, currently above its 200-day average. For context, the median of 10 Consumer Cyclical peers we cover trades at −36% fair-value upside, at 74%, NDL screens cheaper than that median.

Fair Value models

Each model estimates fair value its own way; the Fair Value above is the evidence-weighted, family-balanced blend. Evidence (0–100) measures how completely this model’s inputs are available: well-fed models carry more weight in the blend. The spread across models is intentional, each one stresses a different value driver; dividend models, for instance, come out structurally low when payout is small. Every input is real reported data, nothing guessed.

Model Bear Bear = the cautious scenario: the same model computed with conservative anchors (lower growth, margins and valuation multiples). Together with Bull it frames a plausible valuation range, not a price target.BaseBull Bull = the optimistic scenario: the same model computed with favourable anchors (higher growth, margins and valuation multiples). Together with Bear it frames a plausible valuation range, not a price target. Evidence
Highest evidence
FCF DCF best evidence ₹10.56 ₹17.15 ₹27.27 79
Growth DCF ₹10.62 ₹16.96 ₹26.54 77
Residual Income ₹3.40 ₹3.40 ₹3.19 76
All 26 models by family
DCF Models
FCF DCF best evidence ₹10.56 ₹17.15 ₹27.27 79
Owner Earnings ₹5.31 ₹8.72 ₹13.95 75
5Y Revenue Exit ₹5.31 ₹7.54 ₹10.25 73
5Y EBITDA Exit ₹6.78 ₹10.38 ₹14.57 75
5Y P/E Exit ₹5.71 ₹8.33 ₹11.05 71
10Y Revenue Exit ₹7.04 ₹9.60 ₹12.88 67
10Y EBITDA Exit ₹8.06 ₹11.56 ₹16.21 68
10Y P/E Exit ₹7.39 ₹10.14 ₹13.49 64
Earnings-Based
Graham-Dodd ₹1.56 ₹5.70 ₹7.70 64
Lynch FV ₹1.36 ₹1.94 ₹2.52 61
PEG = 1.0 ₹1.36 ₹1.94 ₹2.52 57
EPV ₹2.27 ₹2.68 ₹3.03 74
Dividend Discount
Gordon GGM ₹0.2300 ₹0.4700 ₹0.7100 66
DDM Multi-Stage ₹0.2300 ₹0.4000 ₹0.4900 67
Multiples
P/E Multiple ₹3.79 ₹5.06 ₹6.32 63
P/S Multiple ₹2.93 ₹3.91 ₹4.88 58
P/B Multiple ₹2.93 ₹3.91 ₹4.88 55
EV/EBIT ₹3.96 ₹5.39 ₹6.81 66
EV/EBITDA ₹5.29 ₹7.16 ₹9.04 67
EV/Revenue ₹2.56 ₹3.80 ₹5.04 53
Asset-Based
NCAV (Graham) ₹2.26 ₹3.03 ₹4.52 54
Growth DCF
Growth DCF ₹10.62 ₹16.96 ₹26.54 77
Rev-Margin DCF ₹5.31 ₹7.67 ₹10.56 73
Economic Profit
Residual Income ₹3.40 ₹3.40 ₹3.19 76
ROIC Compounder ₹2.27 ₹2.68 ₹3.03 72
Growth Earnings
Growth-Adj P/E ₹2.63 ₹3.76 ₹4.89 67

Widest divergence: DCF Models (₹9.60) versus Dividend Discount (₹0.4000). Highest evidence: FCF DCF (79).

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Key figures & financial health

P/S ratio 0.16 TTM
EPS (TTM) ₹−0.4500
Dividend yield 1.0%
Net margin 1.2% FY2026
Return on equity 5.2% TTM
Return on assets (EBIT) 6.0% avg 5y
More key figures
Profitability
Operating margin 2.1% TTM
Growth
Revenue (TTM) ₹24.5B TTM
Revenue growth (YoY) −40.6% 3y avg +12.3%
EPS growth (YoY) +25.0%
Balance sheet & cash flow
Free cash flow ₹1.4B FY2026
Net debt ₹1.1B FY2026 · ≈ 0.8 yrs of FCF

Figures from reported company fundamentals · as of Aug 22, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 54/100

Of which business quality 56 · Market factors (momentum, volatility) 40

Profitability 48
Margins and returns on capital today
Quality Growth 40
Are margins and returns improving?
Cashflow 65
Earnings quality: real cash, not paper profit
Fin. Strength 59
Balance sheet, leverage, solvency risk
Investment 89
Disciplined investing over empire-building
Low Volatility 47
Calm price path (market factor)
Momentum 40
Price trend over the last 3–12 months (market factor)
52W Momentum 32
Distance to the 52-week high (market factor)
Net Issuance 40
Buybacks instead of dilution

Non-valuation factor families (profitability, growth, cashflow, financial strength, momentum …), each academically grounded. Valuation itself sits in the Fair Value and is deliberately excluded here to avoid double-counting.

All values are scores from 0 to 100 (100 = best against fixed, research-based bands), not percentages. The three market factors (momentum, 52-week proximity, low volatility) are displayed but carry zero weight in the headline number: market sentiment is not a business property.

About the company

Nandan Denim Limited engages in the manufacture and sale of denim and cotton fabrics, dyed yarns, shirting fabrics, and fibers in India.

Full company description

Nandan Denim Limited engages in the manufacture and sale of denim and cotton fabrics, dyed yarns, shirting fabrics, and fibers in India. The company offers core classics, reinvented classics, novelties, structured, knit, light weight, blends, feather touch, stretch tech, and prints denims; plain, twill, dobby, chambray, fil a fil, herringbone, basket weave, and pin-point oxford shirting fabrics; and grey cotton fabrics, and khakis. It also exports its products. The company offers its products to fabric re-seller, garment converter, distributors, wholesalers, dealers, brand owners, and exporters. The company was formerly known as Nandan Exim Limited and changed its name to Nandan Denim Limited in November 2013. Nandan Denim Limited was incorporated in 1994 and is based in Ahmedabad, India.

Company description, as reported by the company or data provider.

Revenue & earnings trend

FY2022 – FY2026 · reported fiscal years

Nandan Denim Limited reported revenue of ₹28.7B in FY2026 versus ₹21.1B in FY2022, a compound +8.0%/yr. Reported net income was ₹331M in FY2026, compounding −16.4%/yr from FY2022.

Growth Quality 79/100
Revenue is growing, but margins or cash flow do not fully confirm the trend.
Latest Revenue (FY 2026)
₹28.7B
Latest YoY
−19.0%
Avg. revenue growth/yr (3Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+12.3%
Avg. revenue growth/yr (5Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+21.9%
Avg. revenue growth/yr (10Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+9.5%
Value creation/yr (5Y, in INR) Earnings growth per share (CAGR 5 years) plus dividend yield: value created per share and year. Measured in INR: this currency has depreciated against the euro and dollar over the long run, so part of the nominal rate is currency erosion that never reaches a EUR/USD investor.
−44.3% · in INR
Earnings growth per share plus dividend yield: the value created per share and year.
Earnings growth per share−45.3%
Dividend yield1.0%
Trend Two data points, not a trend model: earnings growth per share over the last 5 fiscal years against the last 10. Labelled "steady" when both rates are within 3 percentage points of each other, otherwise picking up or flattening. Shown only when ten years of history exist.5Y −45.3% vs 10Y −32.6%, flattening
Operating margin (EBIT) Operating margin then vs now, from reported annual statements. A falling margin after a boom year is the classic peak-earnings signal: the growth rate then leans on an inflated base.0.6% (2021) → 1.6% (2026) · steady
Worst earnings drop128% (2021) (loss year, drop beyond 100%) · in INR
⚠ Revenue per share shrinking 32.0%/yr over ~7Y (margins eroding too) Structural-decline marker: revenue PER SHARE has fallen over the last decade (robust median trend, not a single year). Backtested across 2005 to 2017, such businesses trailed the market by about 2.5 percentage points per year. Display only: it does not change the fair value or the quality score.
Revenue +8.0%/yr
FY22 ₹21.1B
FY23 ₹20.3B
FY24 ₹19.6B
FY25 ₹35.5B
FY26 ₹28.7B
Net income −16.4%/yr
FY22 ₹678M
FY23 ₹8.0M
FY24 ₹449M
FY25 ₹334M
FY26 ₹331M

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Cite: Fair Value Calculator (2026). "Nandan Denim Limited Fair Value". https://www.fairvalue-calculator.com/stock/NDL.BSE

Peer Group

Textile Manufacturing · 331 stocks

How this stock ranks against its industry: the green marker is this stock, the band is the typical 25–75% peer range, and the tick is the median.

Quality Score 54 · Above median
Fair Value upside +74% · Top 25%
Return on equity (TTM) 5% · Above median
Return on assets 2% · Above median
Net margin (TTM) 2% · Below median
Operating margin (TTM) 2% · Below median
Revenue growth −41% · Bottom 25%
Dividend yield (TTM) 1.0% · Below median
Debt / equity 0.08× · Lower than median

Valuation Multiples vs Textile Manufacturing median · lower = cheaper

P/FCF 0.0× · Cheaper than 75% of peers
EV/EBITDA 0.6× · Cheaper than 75% of peers

Values & ESG

Does this company touch areas you may want to avoid? The classification is inferred from sector and industry.

None of the checked exposures detected

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10 more Textile Manufacturing stocks, each showing price versus our Fair Value estimate (as of Aug 22, 2026).

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Albany International Corp AIN $59.92 $18.40 −69%
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Frequently asked questions

Is Nandan Denim Limited (NDL) overvalued or undervalued?
As of Aug 22, 2026, our model estimates a fair value of ₹4.92 versus a price of ₹2.83, about +74% upside (undervalued).
What is the fair value of NDL?
Our model-based fair value for Nandan Denim Limited is ₹4.92 (as of Aug 22, 2026), built from audited fundamentals. The current price: ₹2.83.
What is the quality score of NDL?
Nandan Denim Limited has a Quality Score of 54/100. It measures business quality (profitability, growth, cash flow, balance-sheet strength, investment discipline, share issuance). Market factors such as price momentum and volatility do not enter the number; they are shown separately in the detail view.
What is the price target for Nandan Denim Limited (NDL)?
Our model-based price target is the fair value of ₹4.92 (as of Aug 22, 2026) from 26 valuation models. Cautious scenario ₹3.49, optimistic scenario ₹6.32. It is a calculation from audited fundamentals, not an analyst target.
What is the Nandan Denim Limited stock forecast for 2026?
Our models put fair value at ₹4.92, about +74% upside versus a price of ₹2.83 (undervalued). Cautious scenario ₹3.49, optimistic scenario ₹6.32. The calculation is refreshed regularly with new filings.
What is the revenue of Nandan Denim Limited (NDL)?
Nandan Denim Limited reported trailing-twelve-month revenue of about ₹24.5B (latest available figure, as of Aug 22, 2026).
What is the net profit margin of NDL?
The net profit margin of Nandan Denim Limited is about 1.5%, meaning it keeps roughly 1.5% of revenue as net income. Based on the latest reported figures.
Does Nandan Denim Limited pay a dividend?
Nandan Denim Limited currently shows a dividend yield of about 0.98% relative to its recent price (as of Aug 22, 2026).
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