The stock rally came in after the Nanadani Creation announced that it's women's ethnic brand Jaipur Kurti with Reliance Fashion Factory (formerly known as Brand Factory).AI Quick ReadSmall-cap fashion stock Nandani Creation jumped 9% in Thursday's trading session despite the stock market crash. The small-cap stock opened at ₹31.60 apiece today, as compared to the previous close of ₹31.57 on Wednesday.
The Indian stock market extended its sharp decline for a second straight session on Thursday, April 23. During intraday trade, the 30-share Sensex tumbled over 850 points, or more than 1%, while the Nifty 50 also slid about 1%, hitting a low of 24,135 for the day.
The stock rally came in after the Nanadani Creation announced that it's women's ethnic brand Jaipur Kurti with Reliance Fashion Factory (formerly known as Brand Factory).
According to the press release dated 23 April, the partnership enables Jaipur Kurti to tap into 25+ Fashion Factory outlets, providing an organised route to clear ageing and slow-moving inventory while freeing up capital tied in low-performing stock. Industry experts view this as one of the most crucial yet often overlooked stages in the apparel business cycle, the company said.
With a continued emphasis on strengthening its direct-to-consumer (D2C) ecosystem, Nandani Creation is steadily expanding its footprint in the women’s ethnic wear segment.
The company remains focused on delivering a seamless shopping experience by growing its retail presence and enhancing both its digital and offline channels, it added.
Reliance’s Fashion Factory stores are designed to be one-stop destination for various Fashion needs, including western wear, ethnic Indian wear, footwear, accessories and more with constant availability as they operate on a “Fashion 365 Days” promise ensuring the discounts are available every day of the year.
“This partnership with Reliance Fashion Factory will deepen our presence in the value retail segment and aligns with our strategic focus on capital efficiency. The successful completion of stock churning reflects our continued focus on disciplined inventory management and working capital efficiency,” said Anuj Mundhra, Chairman & Managing Director of Nandani Creation.
Apart from this partnership, the company currently runs 8 COCO retail outlets (3 in Jaipur, and one each in Ahmedabad, Kota, Shri Ganganagar, Lucknow, and Ghaziabad) along with 5 FOFO stores (1 in Delhi, 2 in Gurugram, and one each in Mumbai and Ajmer). It also has a presence across 22+ Shoppers Stop stores, 80+ SIS outlets, over 80 Reliance Trends stores, 35+ Avantara and Kalanikethan outlets, and more than 20 Reliance Centro stores, among others.
The small-cap fashion stock has largely remained positive in the near-term. Nandani Creation share price has delivered 17.58% returns in a week, compared to Nifty 50's return of 0.05%.
The small-cap stock has gained 25.35% in a month and 7.13% in year-to-date (YTD) basis.
Looking at the broader level, the small-cap stock has descended 26.58% in one year and 59% in three years. However, it has given 47.44% returns in the last five years.
Disclaimer: This story is for educational purposes only. Please consult with an investment advisor before making any investment decisions.
Vaamanaa covers business and stock market news. Started in 2020, she has been producing news on digital platforms for over 4.5 years now. She writes on markets, commodities, IPOs, and industry. She has worked for news channels like Jagran New Media and Business Insider India. You can reach out to her at vaamanaa.sethi@htdigital.in.