Small-Cap Fashion Stock Surges 9% Amid Broader Market Decline

Nandani Creation Jumps 9% Amid Market Crash Despite Partnership Details

The Indian stock market extended its sharp decline for a second straight session on Thursday, April 23, with the 30-share Sensex tumbling over 850 points, or more than 1%, while the Nifty 50 also slid about 1%, hitting a low of 24,135 for the day. However, Nandani Creation, a small-cap fashion stock, bucked the trend by jumping 9% in Thursday's trading session.

The stock opened at ₹31.60 apiece today, as compared to the previous close of ₹31.57 on Wednesday. The significant gain comes as a result of Nandani Creation's announcement of a partnership with Reliance Fashion Factory (formerly known as Brand Factory) to launch its women's ethnic brand Jaipur Kurti.

According to a press release dated April 23, 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.

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Nandani Creation's emphasis on strengthening its direct-to-consumer (D2C) ecosystem is evident in its steady expansion of 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.

With its presence across various platforms, including 8 COCO retail outlets, 5 FOFO stores, and more than 20 Reliance Centro stores, Nandani Creation is well-positioned to capitalize on the growing demand for ethnic wear.

"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.

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Nandani Creation's share price trend has largely remained positive in the near-term, with the stock delivering 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. However, it has descended 26.58% in one year and 59% in three years, but given 47.44% returns in the last five years.