According to the global brokerage, the re-rating on stock is possible if the women's branded apparel company is ahead of peers in execution & cash generation
TCNS Clothing Co shares declined nearly 2 percent after global brokerage house Citi downgraded the stock as well as slashed its price target on lower growth going ahead.
The stock was quoting at Rs 817.85, down Rs 6.90, or 0.84 percent on the BSE, at 1153 hours IST, but it rallied 24 percent in last three months.
Citi has downgraded its rating to neutral from buy and also cut the target to Rs 847 from Rs 885 earlier.
"The softer base prompted us to lower our revenue estimates by 3-4 percent and we cut EBITDA estimate by 5-6 percent & EPS by 5 percent for next two years," it reasoned.
According to the global brokerage, the re-rating on the stock is possible if the women's branded apparel company is ahead of peers in execution & cash generation.Disclaimer: The above report is compiled from information available on public platforms. Moneycontrol advises users to check with certified experts before taking any investment decisions.
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