Buy TCNS Clothing Co., target price Rs 800: ICICI Direct

ICICI Direct has buy call on TCNS Clothing Co. with a target price of Rs 800. The current market price of TCNS Clothing Co. is Rs 673.35. Time period given by analyst is one year when TCNS Clothing Co. price can reach defined target.

TCNS Clothing Co., incorporated in the year 1997, is a mid cap company (having a market cap of Rs 4103.91 Crore) operating in apparels sector.

Its key products/revenue segments include apparel and other operating revenue for the year ended March 31, 2022.


Financials
For the quarter ended June 30, 2022, the company has reported a standalone total income of Rs 283.02 crore, up 14.77 per cent from last quarter total income of Rs 246.58 crore and up 192.40 per cent from last year same quarter total income of Rs 96.79 crore. Company has reported net profit after tax of Rs 2.44 crore in latest quarter.

The company’s top management includes Mr.Onkar Singh Pasricha, Mr.Anant Kumar Daga, Mr.Naresh Patwari, Ms.Neeru Abrol, Ms.Sangeeta Talwar, Mr.Bhaskar Pramanik. Company has Deloitte Haskins & Sells LLP as its auditors. As on June 30, 2022, the company has a total of 6 crore shares outstanding.

Investment Rationale
Since the initiation report, the stock has appreciated 65 per cent (from Rs 400 in April 2020 to Rs 660 in September 2022). With normalisation of business scenario and renewed impetus on growth by the company, the financial performance is expected to improve in ensuing quarters.

The brokerage maintains BUY recommendation on the stock.

Promoter/FII Holdings
Promoters held 32.25 per cent stake in the company as of June 30, 2022, while FIIs owned 16.7 per cent, DIIs 7.15 per cent.