Buy TCNS Clothing; target of Rs 1120: ICICI Direct

ICICI Direct's research report on TCNS Clothing

Given its multi-distribution channel approach and robust supply chain infrastructure, TCNS has emerged as the market leader in women’s ethnic space through its three popular home grown brands • TCNS follows an asset light business model, with production outsourced on a job work basis. This enables the company to generate high RoIC • Healthy balance sheet with cash reserves worth Rs 160 crore.

Outlook

We value TCNS at Rs 1120 i.e. 4x FY24E EV/Sales (earlier TP: Rs 860).