Sell TCNS Clothing Co., target price Rs 510: HDFC Securities

HDFC Securities has sell call on TCNS Clothing Co. with a target price of Rs 510. The current market price of TCNS Clothing Co. Ltd. is Rs 607.55. Time period given by analyst is one year when TCNS Clothing Co. Ltd. price can reach defined target.

TCNS Clothing Co. Ltd., incorporated in the year 1997, is a Mid Cap company (having a market cap of Rs 3775.12 Crore) operating in Apparels sector.

TCNS Clothing Co. Ltd. key Products/Revenue Segments include Apparel and Other Operating Revenue for the year ending 31-Mar-2021.



Financials
For the quarter ended 30-06-2022, the company reported a Standalone Total Income of Rs 283.02 Crore, up 14.77 % from last quarter Total Income of Rs 246.58 Crore and up 192.40 % from last year same quarter Total Income of Rs 96.79 Crore. Company reported net profit after tax of Rs 2.44 Crore in latest quarter.

Investment Rationale
The brokerage revises down FY24/25 EBITDA estimates by ~10/9% respectively to account for higher S&D expenses. Maintain SELL recommendation with a revised DCF-based TP of INR510/sh, implying 20x Jun-24 EV/EBITDA.

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