Shares of textile manufacturer Nandan Denim Limited witnessed intense buying pressure during Friday's trading session, concluding the day with a massive gain of nearly 20 percent. The penny stock experienced a significant trading volume expansion of over 18.77 times and locked into the upper circuit. Over the past month, the stock has delivered gains of close to 14.77 percent to its investors.
BSE Trading Performance and Volume Expansion
On the BSE, Nandan Denim share price closed 19.82 percent higher at Rs 2.72 per share, bringing the company's total market capitalisation to Rs 392.08 crore. During the day's movement, the stock scaled an intraday high of Rs 2.72 per share after recovering from an intraday low of Rs 2.26 per share. The sudden influx of buy orders led to a substantial spurt in overall trading activity.
Q1 FY27 Financial Results and Profit Surge
The upward momentum in the stock comes shortly after the company released its financial results for the first quarter of the financial year 2026-27. Nandan Denim reported a 32 percent annual increase in net profit, reaching Rs 14.79 crore for the June quarter of FY27, compared to Rs 11.19 crore recorded in the June quarter of FY26. However, net revenue from operations for Q1FY27 contracted to Rs 622.38 crore from Rs 1047.67 crore reported in the corresponding period of the previous fiscal year.
Tax Adjustments and Earnings Breakdown
The company's net profit before tax for the quarter stood at Rs 10.32 lakh, against Rs 14.82 lakh reported in the same quarter last year. The bottom-line performance gained support from a Rs 5.07 lakh credit associated with short provision for income tax and deferred tax pertaining to earlier years. Deferred tax for the current quarter was recorded at Rs 58.98 lakh. Consequently, basic earnings per share (EPS) improved to Rs 0.10, up from Rs 0.08 in Q1FY26.
Renewable Energy Stake Purchase and Power Agreement
Earlier this year in April, the board of directors of Nandan Denim approved the acquisition of a 6.1 percent equity stake in Opera Vayu (Narmada) Private Limited. The target entity operates as a special-purpose vehicle established for renewable energy generation under the captive power framework. As detailed in a BSE filing dated April 17, the company approved a Share Transfer cum Shareholders' Agreement with the SPV Opera Vayu (Narmada) Private Limited and project developer Shivman Wind Energy Private Limited to secure solar and wind energy supplies under the captive power route.
