'Buy' This Apparel Stock For 27% Upside In 1 Year: ICICI Direct Recommends

Brokerage firm ICICI Direct has recommended investors to buy TCNS Clothing's stocks with a potential upside of 27%, within a target period of 1 year.

Target Price

The Current Market Price (CMP) of TCNS Clothing is Rs. 885 The brokerage firm, ICICI Direct has estimated a Target Price for the stock at Rs. 1120. Hence the stock is expected to give a 27% return, in a Target Period of 1 year.

Stock Outlook
Current Market Price (CMP)	Rs. 885
Target Price	Rs. 1120
1 year returns	27.00%

Company performance

Revenue recovery rate improved gradually to ~75% of pre-Covid levels in Q2FY22. Festive season witnessed a healthy 100% revenue recovery rate. On the new product launches, the footwear range has seen strong traction and is already contributing ~10% in selected 'W' stores. Undertaking category expansion (beyond its core ethnic wear) in a bid to tap opportunities across non-apparel categories. Foraying into make-up, color cosmetics under the brand 'Aurelia'. Over the longer term, the management aspires to achieve 20-25% contribution from the non-apparel segment.

Comments by ICICI Direct

Maintaining the BUY recommendation on the stock, ICICI Direct said, the key trigger for future performance is "Healthy store addition pipeline for FY22 with the opening of 60+ new stores on a net basis (40+ stores already signed)." The brokerage firm added, "Since our initiation report, the stock price has appreciated ~2.2x (from Rs. 400 in April 2020 to Rs. 885 in November 2021)."

About the company

TCNS Clothing is premium apparel, occasion wear brand, and footwear company, and their brands are W, Aurelia, and Wishful. These brands are significant players in the Indian apparel business.

Disclaimer

The above stock was picked from the brokerage report of ICICI Direct. Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution. Greynium Information Technologies, the author, and the brokerage house are not liable for any losses caused as a result of decisions based on the article.

(Also read: Sharekhan Recommends To 'Buy' This Stock For +33% Returns, In 1 Year)