Emkay Global Downgrades This Apparels Sector Stock, Shares Trading Near 52-Week Low

Leading brokerage Emkay Global has downgraded this Apparels sector stock, TCNS Clothing Co. Ltd. The analyst has given hold rating to TCNS Clothing with a target price of Rs 630 apiece. The current market price of the stock is Rs 562 apiece. TCNS's Q2 EBITDA was ~17% lower than street/our estimates, led by ~300bps miss on the margin front. Check key takeaways below:

1. TCNS Clothing Stock Outlook

The current market price of TCNS is Rs 562 apiece with 3.70% intraday decline. The 52-week high is Rs 932 apiece and 52-week low is Rs 493 apiece, respectively. The company has a market capitalisation of Rs 3,463.89 crore.

2. TCNS Clothing Return

The stock has declined 18% in last 3-years, 31% in last 1-year, and 13% in last 3-months, and 14% in last 1-month. The stock fell 7% in last 1-week.

3. TCNS Clothing Valuation

According to Emkay Global, "With slower ethnic recovery and margin miss, we downgrade our rating to Hold with a revised TP of Rs630 (vs. Rs800 earlier). Slower store addition is a potential downside risk. Stronger traction in bottom-wear brand Elleven and faster SSG/margin improvement remain potential upside risks."

4. TCNS Clothing About

TCNS is one of the largest women's fashion & lifestyle company in India, with four segment defining brands - W, Aurelia, Wishful and Elleven. Since its founding, TCNS has deployed a business model marked by creative momentum, consumer centricity and constant quest for excellence.

Today, it provides a complete wardrobe solution to the contemporary Indian woman for multiple occasions. The company designs, manufactures, markets and retails a wide portfolio of women's branded apparel, footwear, cosmetics and accessories across different brands. Sold across India, Mauritius, Sri lanka and Nepal, TCNS has a dominant presence in the market with over 550+ exclusive brand stores, 2000+ large format stores, 1000+ multi-brand outlets, online brand stores and leading marketplaces.

Disclaimer

The stock has been picked from the brokerage report of Emkay Global. Greynium Information Technologies, the Author, and the respective Brokerage House are not liable for any losses caused as a result of decisions based on the article. Goodreturns.in advises users to check with certified experts before taking any investment decision.