Buy TCNS Clothing Co; target of Rs 1050: Emkay Global Financial

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26 Aug, 2025 12:21

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Emkay Global Financial's report on TCNS Clothing Co

Our channel checks suggest the recovery in physical channels likely improved to ~90% in Q3 vs. ~65% in H2FY21/Q2FY22. The recovery is aided by marketing investments in ‘Alia for Aurelia’/Plus-size campaigns, traction in footwear and the launch of new styles. Unlike its peers, TCNS did not see any operating cash loss in the last 18 months with lower participation in discounting during EoSS. Due to its focus on profitability and slower ethnic recovery, TCNS has lagged behind peers in terms of recovery by 10-15% (Exhibits 1-2). Increase in the addressable market through introduction of accessories/plus-sizes should help deliver relatively better SSG/earnings when normalcy returns. After successful launch in ~100 W stores (~10% contribution), TCNS has also launched footwear in Aurelia stores.

Outlook

As TCNS delivers on our earnings expectations (~40% CAGR over FY20-24E), it should narrow down the 30-75% valuation discount vs. peers. Given the robust supply chain, penetration potential and strong online presence, we retain Buy with a TP of Rs1,050.

More Info

At 17:30 TCNS Clothing Co was quoting at Rs 817.00, up Rs 57.75, or 7.61 percent.

It has touched an intraday high of Rs 833.00 and an intraday low of Rs 769.85.

It was trading with volumes of 30,748 shares, compared to its thirty day average of 3,182 shares, an increase of 866.29 percent.

In the previous trading session, the share closed up 0.84 percent or Rs 6.35 at Rs 759.25.

The share touched its 52-week high Rs 932.55 and 52-week low Rs 394.75 on 17 November, 2021 and 01 February, 2021, respectively.

Currently, it is trading 12.82 percent below its 52-week high and 105.95 percent above its 52-week low.

Market capitalisation stands at Rs 5,030.80 crore.For all recommendations report, click here

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