Penny stock under ₹5 to be in focus on Friday; here's why

Multibagger penny stock: Shares of Nandan Denim are likely to be in investors' radar during Friday's trade, November 14, as the company reported its financial performance for the September-ending quarter today, post market hours.

The company delivered a revenue of ₹784.69 crore in Q2FY26, down from ₹850.25 crore in Q2FY25, indicating a 7.7% year-on-year decline. EBITDA for the quarter stood at ₹7.25 crore, while in the same quarter last year it was around ₹31.47 crore, reflecting a decline of about 26.7% YoY.

The EBITDA margin contracted to 3.2% in Q2FY26 from 4.0% in Q2FY25. On the bottom line, the net profit improved marginally to ₹9.44 crore, up 7.6% YoY from ₹8.77 crore in the year-ago period, aided by lower deferred tax expenses.

For the half year ended September 2025 (H1FY26), the company’s revenue came in at ₹1,832.36 crore, compared with ₹1,571.88 crore in H1FY25, marking a 16.5% growth.

EBITDA for H1FY26 stood at ₹51.32 crore versus ₹62.97 crore in H1FY25, showing a 25.8% decline year-on-year, while the margin slipped to 2.8% from 4.0% a year earlier.

Net profit for H1FY26 rose to ₹20.64 crore, up 26.9% YoY from ₹16.27 crore in the same period last year.

Corporate Actions and Historical Milestones

The company has taken several shareholder-friendly initiatives in recent years. In September 2024, Nandan Denim announced a stock split in a 10:1 ratio, making the stock more affordable and accessible to retail investors. Earlier, in March 2022, it had issued bonus shares in a 2:1 ratio, further rewarding shareholders.

Founded in 1994, Nandan Denim is part of the Ahmedabad-based Chiripal Group and has grown to become India’s largest and the world’s fourth-largest denim fabric manufacturer. What began as a textile trading business has evolved into a vertically integrated denim powerhouse with global operations. Today, it exports to over 27 countries and counts several top retailers among its clients. Domestically, the company holds a dominant position in the denim supply chain.

Nandan Denim Stock Performance

The penny stock has remained under pressure in recent months, losing 18% of its value over the past four months. The recent decline has pushed the stock 43% lower from its 52-week high of ₹6.1 apiece.

However, a broader time frame paints a more optimistic picture. Over two years, the stock has surged 34%, while in five years, it has given multibagger returns, skyrocketing by 373%, offering substantial wealth creation for long-term investors.

Disclaimer: This story is for educational purposes only. The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.