New Listing: TCNS clothing trading 4% down on the opening day

TCNS has a strong track record of developing home-grown brands and leveraging its deep understanding of Indian women’s fashion needs.

Jul 30, 2018 10:07 IST India Infoline News Service

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The shares of the TCNS Clothing Co Ltd (TCNS), India’s leading women’s branded apparel company, are trading at 4% down from the listing price of Rs716/share. This is a 100% offer for sale issue

It has portfolio of brands including (a) ‘W’, a premium fusion wear brand, (b) Aurelia, a contemporary ethnic wear brand and (c) Wishful, a premium occasion wear brand. As of March 31, 2018, its store count stood at 465 exclusive brand outlets (EBO), 1,469 large format store outlets (LFS) and 1,522 multi-brand outlets (MBO), located in 31 states and union territories in India.

Key Points related to company
Portfolio of established brands: It has a strong track record of developing home-grown brands and leveraging its deep understanding of Indian women’s fashion needs.

Capital efficient and scalable business model: The company has entered into leases or franchise agreements for its EBOs, which require lower upfront capital expenditure compared to acquisition of real estate properties for setting up outlets.

Significant portion of revenues from brand ‘W’: The brand ‘W’ contributed 57.65%, 61.06% and 65.58% to the company’s revenues during FY18, FY17 and FY16 respectively. Too much dependence on brand ‘W’ poses risk for the company.

No in-house manufacturing, dependent on job workers: The company does not have any manufacturing facilities. It engages job workers for manufacturing all its products. Hence, consistency in quality is always a challenge for the company.  

TCNS Clothing Co. Ltd is currently trading at Rs690.65 down by Rs25.35 or 3.54% from its previous closing of Rs716 on the BSE.

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