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July 13, 2018 1
Rating: Subscribe | Price Band: Rs714 – Rs716
A pure play on “Women Ethnic Wear”
TCNS Clothing is a pure play on branding opportunity in USD6.5bn “ethnic
women wear” segment. Branded segment is only 23% and is growing at 30%
CAGR in comparison to industry growth of 10%. TCNS has “W”, “Aurelia”
and “Wishful” brands which cater to across price segments. TCNS stands out
in the ethnic wear segment due to 1) scaled up operations with 3 brands
across price points 2) team of 37 designers with new products every 3 weeks
3) Supply chain with 225 vendors and 78 job work suppliers 4) ~60% gross
margins which enable spend on distribution and brand building 5) 3456
points of sale across EBO’s, LFS and MBO’s with a successful franchisee
based EBO model 6) Professional management and 7) debt free balance sheet
with 3.5x inventory turns and working capital at 32% of sales.
TCNS is looking at ~75 new EBO additions/year which would enable 17%
sales CAGR, 20% EBIDTA CAGR and 18.5% PAT CAGR (excluding ESOP
provisions) over FY18-21. The stock is being offered at 33.7xFY18 EPS
(Before ESOP Provisions) which offers scope for decent gains over the
medium term given strong growth outlook. Recommend Subscribe.
Strong Brands and wide distribution: TCNS has brands “W”, Aurelia and Wishful
which are 57.7%, 33.7% and 8.7% of sales which have grown at CAGR of 23.43%,
47.8% and 39.7% respectively during FY16-18. It has access to ~3456 points of
sale which includes 465 EBO, 1469 LFS and 1522 MBO and 40% of EBO’s are on
a franchisee model. 75 EBO additions, LFS, online retail and huge scope in tier2/3
with MBO additions will drive growth.
Designing and supply chain efficiencies: TCNS has a team of 37 in-house
designers who have launched 1600 new designs in past 1 year and aim for fresh
design every 3 weeks. It has close to 225 vendors to cater to complicated supply
chain and 78 Job Work fabricators for apparel making. TCNS has gone live with
ERP which will improve the efficiency of supply chain and distribution.
Promoter experience and Professional Management: The Promoters
(Pasricha’s) have 40 years of experience in apparel industry and day to day running
is in the hands of professionals. The company is headed by Mr. Anant Daga, MD
who holds ~8% stake and top management has stickiness.
FCF and Net cash positive company: TCNS has turned FCF positive in FY17 and
has a net cash of Rs509mn. Limited capex requirements of ~250mn/annum, capital
infusion from Promoters, PE and ESOPS and tight control over inventory and
receivables has ensured strong balance sheet. Although TCNS is not getting any
inflow from current IPO (offer for sale), the free cash generation will be sufficient for
expansion in tier 2/3 cities to achieve steady growth and ROCE and ROE of 36.8%
and 26.8% by FY20.
TCNS Clothing Co.
July 13, 2018
IPO Note
IPO Fact Sheet
Opening Date July 18, 2018
Closing Date July 20, 2018
BRLMs Kotak Investment Banking,
CITI Group
Issue Size Rs11.25bn
Fresh Issue Nil
Offer for Sale Rs11.25bn
Issue Details
Pre-issue equity (m shares) 61.3
Post-issue equity (m shares) 61.3
Post-issue Market Cap (Rs bn) 40.2-40.3
Shareholding Pattern
(%) Pre-Issue Post-Issue
Promoters 43.68% 32.42%
Public & Others 56.32% 67.58%
Amnish Aggarwal
[email protected] | 91-22-66322233
Nishita Doshi
[email protected] | 91-22-66322381
TCNS Clothing Co.
July 13, 2018 2
TCNS: Pure play on ethnic women apparel
TCNS Clothing is a pure play on growth opportunity in USD1.5bn branded ethnic
women wear segment which is growing at 30% CAGR. TCNS has three home
grown brands under its umbrella which are uniquely positioned to capture the needs
and aspirations of Indian women.
The main brand “W” (57.7% of sales) is a premium Indian and western fusion wear
brand targeting modern Indian women's work and casual wear requirements.
Aurelia (33.7% of sales) is positioned as a contemporary ethnic wear brand
whereas Wishful (8.7% of sales) is a premium occasion wear brand. These brands
grew at CAGR of 23.4%, 47.8% and 39.7% respectively during FY16-18.
TCNS stands out in the apparel segment with strong and established brands due
to 1) scaled up operations with presence across price points 2) Design and product
innovation which appeals to style, taste and requirements of Indian women 3) ~60%
gross margins to spend on distribution and brand building 4) Distribution across
EBO’s, LFS, MBO and online formats 5) Faster growth of organized retailing for
Ethnic apparels 6) No competition from global brands in ethnic apparel market 7)
Professional management and 8) debt free balance sheet with tight control over
inventory turns and working capital.
Issue Details: Offer for sale of ~Rs11.25bn
Launch Date 18th July, 2018
Issue Period Opening date: 18th July; Closing date: 20th July 2018
Exchange Listing on both NSE and BSE
Issuer TCNS CLOTHING CO. LIMITED
Offer Type Initial Public Offering / Reg S
Net offer Offer for Sale of Rs 11,251.2 mn
Price Band Rs 714-716
Issue Split (No. of shares)
QIB Portion: At least 50% of the issue
Non-Institutional portion: Up-to 15% of the issue
Retail Portion: Up-to 35% of the issue
Current Shareholding
Pre-Offer Post-Offer
Promoter Holding 43.68% 32.42%
Public 56.32% 67.58%
Offer Structure @ Upper price band @ Lower price band
(No of shares in mn) 15.71mn at upper price band
Fresh issue 0 0
Offer for sale (Rs mn) 11251 11220
Net offer for Public (Rs mn)
11251 11220
BRLMs Kotak Investment Banking, CITI Group
Source: RHP
TCNS operates in branded women
ethnic wear segment which is
growing at 30% CAGR
TCNS Clothing Co.
July 13, 2018 3
Key Investment Arguments
Established brand with strong positioning
The women’s apparel market in India is expected to grow at 10% CAGR over FY17-
25. Increasing proportion of women in the working population in India and growing
acceptance of ethnic wear as work wear is leading to a shift from traditional apparel
(Sarees) to ethnic wear such as salwar, kameez and kurtas. Branded ethnic wear
is only 23% of the ethnic apparel market and a shift from unbranded to branded
ethnic wear is likely to enable 30% CAGR in the branded apparel market.
TCNS has the largest number of EBOs in India compared to other women’s
branded apparel company. TCNS caters to a variety of women’s wardrobe
requirements, including every day wear, casual and work wear and occasion wear
which is sold at a range of price points.
TCNS has brand across segments and price points
Brand Typical Range of offering Revenue CAGR over FY16-18
W Rs.1,299 to Rs.1,899 23.43%
Aurelia Rs.799 to Rs.1,499 47.8%
Wishful Rs.2,999 to Rs.4,999 39.73%
Source: Company, PL
Variation in design and patterns, cost of materials and prices across the three
brands results in varying profitability across brands. The differentiated brands
enable the company to cater to the various customer needs, enable expand product
range and capture a larger share of the overall market.
W accounts for 57% of sales while Aurelia is 34% of sales
66.6
%
25.9
%
7.5
%
65.6
%
26.7
%
7.7
%
61.1
%
30.4
%
8.5
%
57.6
%
33.7
%
8.7
%
0.0%
10.0%
20.0%
30.0%
40.0%
50.0%
60.0%
70.0%
80.0%
90.0%
100.0%
W Aurelia Wishful
FY15 FY16 FY17 FY18
Source: Company, PL
TCNS operates with brands like “W”,
“Aurelia” and “Wishful” in price band
starting Rs799 and going up-to
Rs4999
TCNS has largest number of EBO’s
in comparison to competitors
TCNS Clothing Co.
July 13, 2018 4
Designing, supply chain and scale are key strengths
TCNS has a team of 37 designers for innovating new designs and optimize fit and
size using anthropometric studies of Indian women, while emphasizing on higher
quality. In FY18, TCNS launched 1600 products in various sizes across categories.
TCNS has consistently interplayed traditional and fusion-wear designs to introduce
new fashion styles such as the ‘Mughal gown’, ‘pant robes’ and ‘stiletto kurtas’. The
data-centric approach, supported by innovative and institutionalized design process
and experienced design team allows TCNS to develop new and differentiated
products and respond to evolving market trends and consumer preferences. TCNS
has been refreshing its product offering every 3 weeks and plans to continue with
the same.
TCNS has an extensive sourcing network of ~225 suppliers for procuring printed
fabrics, unprocessed fabrics and trim materials and supplies them to 78 Job work
fabricators mainly located in the NCR region to manufacture products. TCNS
intends to limit purchases from traders and intermediaries by directly purchasing
fabrics from mills or weavers by blocking a significant portion of their yearly
capacity. Top 5 job workers account for 53% of the fabrication work, there has been
zero attrition of top 10 suppliers and job workers in the past 3 years.
TCNS is in the process of implementing ERP systems which has gone live from
April 2018. Although the near term disruption has emerged, efficiencies in
production and distribution are likely to be immense. Direct material sourcing,
purchase of grey fabric and increasing economy of scales has enabled 410bps
EBIDTA margin expansion in the past 3 years.
TCNS has presence across formats
TCNS has a multi-dimensional distribution network with 3456 point of sales. The
distribution includes Exclusive Brand outlets (EBO), Large format stores (LFS) such
as Pantaloons, Shoppers Stop and Lifestyle, Multi-brand outlets (MBO) and online
retail through leading platforms and its own website.
LFS and MBO have seen sharp ramp up in FY18
235
565
748
305
794
960
381
9911109
465
14691522
0
200
400
600
800
1000
1200
1400
1600
EBOs LFS MBOs
FY15 FY16 FY17 FY18
Source: Company, PL
TCNS has a team of 37 designers
and has launched 1600 new designs
in past 1 year
TCNS has 225 suppliers and 78 job
work fabricators, ERP implementation
will improve efficiencies
TCNS Clothing Co.
July 13, 2018 5
EBOs and LFS account for ~88% of revenue
Source: Company, PL
TCNS has more broad based sales distribution than competitors
Source: Company, PL
W has 143 stores in the top eight cities (Delhi/NCR, Greater Mumbai, Kolkata,
Chennai, Bangalore, Hyderabad, Ahmedabad and Pune) which have high store
penetration and consumption levels. TCNS is increasing number of stores of Aurelia
in the Tier 1 and Tier 2 cities due to their high growth potential. North and south
dominate in the Ethnic apparel segment, while East and west have more dominance
in the western apparel segment. TCNS is aiming at opening 75 EBOs of W/ Aurelia
and 10 EBOs of Wishful every year for coming 2-3 years.
Majority revenue arises from sales in the North and south region (40% and 25%
respectively) where dominance of Ethnic apparel segment is more. Brands such as
AND, Anokhi and Kilol, Neerus and Soch also compete in the same region.
41.0%
46.8%
6.5%
5.7%
Channel-wise Share of Branded Women's Ethnic Wear
Exclusive Brand Outlets
Large Format Lifestyle retailers
Traditional Market
Online
73%
80%
88%
55%
92%
45%
92%
55%
32%
44%
20%
20%
37%
35%
37%
48%
40%
10%
12%
9%
7%
12%
8%
8%
10%
8%
8%
8%
7%
0% 20% 40% 60% 80% 100%
Soch
Neerus
Kilol
Global Desi
Fabindia
BIBA
Anokhi
AND
Aurelia
W
Channel-wise revenue FY17 EBO LFS MBO Online
TCNS Clothing Co.
July 13, 2018 6
Top 8 and tier 1 cities have most of stores, tier 3 and small towns offer growth opportunity
Source: Company, PL
TCNS drives ~65% sales from North and South
Source: Company, PL
Franchisee EBO’s enable lower capex and improved cash flows: TCNS has
~40% of EBOs under franchisee which require lower upfront capital expenditure
compared to leasing stores and filling inventories. Further, manufacturing products
through agreements with job workers allows TCNS to increase production capacity
as required without incurring additional capital expenditure. This enables TCNS to
efficiently manage capital and scale up the business at a faster pace. EBOs are
usually able to achieve positive cash flow within 6 months of store opening and
achieve capital breakeven within 18 months.
Moving into accessories: In order to capitalize on the existing distribution and
reach and diversify on their product offerings, TCNS had recently launched a
Jewellery range at their outlets. They also have a plan to selectively target the
women’s accessories market with products such as footwear and fragrances. With
the spread of operations across geographies, TCNS is able to capture the changing
needs of women across India. This not only enables TCNS to reduce the risk of
dependency over a particular region but also enables TCNS to explore new
opportunities across India.
5%
12%
10%
15%
12%
5%
10%
15%
15%
10%
14%
60%
35%
32%
32%
60%
40%
30%
40%
15%
6%
28%
35%
25%
28%
12%
30%
20%
20%
70%
80%
20%
28%
28%
23%
20%
35%
25%
0% 20% 40% 60% 80% 100%
Soch
Neerus
Kilol
Global Desi
Fabindia
BIBA
Anokhi
AND
Aurelia
W
Region-wise revenue FY17 East North West South
40% EBO’s under franchisee
arrangement and 100%
manufacturing under Job work
enables TCNS to focus on designing
and retailing
TCNS Clothing Co.
July 13, 2018 7
Professional and stable top management
TCNS is a professionally managed company with an experienced management
team led by Managing Director, Anant Kumar Daga, who has been associated with
the company for over 7 years and has 13 years of experience in the apparel and
retail industry. The 9 heads of departments have an average of 15 years of
experience in the apparel and clothing industry. TCNS has incorporated incentives
and ESOP schemes leading to management having significant ownership in the
company. Over the last 5 years, TCNS has had a stable management with zero
attrition at the senior management level. TCNS is promoted by Mr. Onkar Singh
Pasricha and Mr. Arvinder Singh Pasricha, each of whom has over 40 years of
experience in the apparel industry.
Management Structure
Source: Company, PL
Promoters have 40-year experience
in Apparel industry while 9 HOD’s
have 15 years+ experience
TCNS Clothing Co.
July 13, 2018 8
Financials- Steady growth, Debt free with healthy ROE and ROCE
TCNS has shown 47% sales CAGR and 68% EBIDTA CAGR over past five years
led by expansion of 800bps in gross margins and 930bps in EBIDTA margins. PAT
excluding ESOP provisions has increased from Rs48mn in FY13 to Rs1.19bn in
FY18. Adj. EPS is Rs21.2.
Financial Snapshot – Scale economies have boosted profitability
Financials FY13 FY14 FY15 FY16 FY17 FY18
Net Sales 1,284 1,696 3,010 4,854 7,008 8,384
Sales Growth % 32.1% 77.5% 61.3% 44.4% 19.6%
Gross Profit 665 921 1,728 2,971 4,410 5,010
Gross Margin 51.8% 54.3% 57.4% 61.2% 62.9% 59.8%
Operating Expenses 513 706 1217 2112 2911 3240
EBIDTA 152 215 511 860 1,499 1,770
Growth % 41.6% 137.8% 68.2% 74.4% 18.0%
EBIDTA Margins % 11.8% 12.7% 17.0% 17.7% 21.4% 21.1%
Interest 51 49 49 29 25 7
Depreciation 31 40 62 89 134 167
PBT from Operations 70 126 400 741 1341 1597
Growth % 80.3% 217.3% 85.4% 80.8% 19.1%
Other Income 8 7 10 21 19 67
PBT 77 133 410 762 1360 1664
Adj PAT 48 87 263 483 894 1,197
EPS 1.0 1.9 5.7 10.5 16.1 21.2
EPS Growth 83.9% 200.5% 83.9% 52.6% 32.0%
Cost of Retail 40.0% 41.7% 40.4% 43.5% 41.5% 38.6%
Source: Company, PL
Cost of retail had increased from 40% to 43.5% by FY16, however growing scale
economies have resulted in decline in cost of retail by 500bps in past 2 years and
enabled 340bps expansion in EBIDTA margins to 21.1%. TCNS is a debt free
company with net cash of Rs509mn in FY18. It has also generated a FCF of
Rs131mn in FY18. TCNS has ROCE of 44.4% and ROCE of 35.5% in FY18 despite
cash infusion from private equity player, promoters and ESOP’s in the past couple
of years.
TCNS Clothing Co.
July 13, 2018 9
Franchisee and LFS enable stable rent
291 568 776 938
9.7%
11.7%11.1%
11.2%
0.0%
2.0%
4.0%
6.0%
8.0%
10.0%
12.0%
14.0%
0
200
400
600
800
1000
2015 2016 2017 2018
Rent Charges (Rs mn) % of sales (RHS)
Source: Company, PL
Net cash positive from FY17
223272
329279
-44
-509-600
-400
-200
0
200
400
FY13 FY14 FY15 FY16 FY17 FY18
Net Debt (Rs mn)
Source: Company, PL
EPS has been moving up steadily
1.0 1.95.7
10.5
16.1
21.2
691
375
12568 45 34
0
100
200
300
400
500
600
700
800
0.0
5.0
10.0
15.0
20.0
25.0
2013 2014 2015 2016 2017 2018
EPS P/E Ratio
Source: Company
Expansion and capital infusion impact ratios
22.9%15.7%
33.5%
65.1%72.4%
44.4%
6.4%11.1%
27.1%
60.9%54.2%
33.5%
2013 2014 2015 2016 2017 2018
ROCE ROE
Source: Company
Working capital improving
145128
108 103 101 101
270
214
140
96 103
133
0
50
100
150
200
250
300
2013 2014 2015 2016 2017 2018
Inventory (Days) Net working capital Days
Source: Company, PL
TCNS is FCF positive since 2016
80
138
346
262
396
3 -1274
21
131
FY14 FY15 FY16 FY17 FY18
Cash Flow From Operations FCFF
Source: Company, PL
TCNS Clothing Co.
July 13, 2018 10
Organized segment is ethnic wear expected to grow briskly
0.6 1.5
0.3 0.6
0.4 0.6
0.2 0.7
2017 2020
Branded Ethnic Apparel Market
National Brands Private Label Brands Regional Brands E-comm only brands
Source: Company, PL
Apparel is 55% of Online sales in lifestyle segment
15%
30%
25%
30%
Share of online retailing in Lifestyle segment (FY17)
Accessories
Footwear
Indian Apparel
Western Apparel
Source: Company, PL
Organized retail only 23%, online gaining share
6.5
9.5
1.4
3.1
0.36 10
2
4
6
8
10
FY17 FY20
Women’s Ethnic apparel retailing and online retail’s share (%)
Total Retail Organised Retail E-tail
Source: Company, PL
TCNS Clothing Co.
July 13, 2018 11
Apparel: women apparel has 41% share, organized share to increase from current 22%
90.7%
9.3%
Lifestyle share of Apparel and accessories
Apparel
Accessories
21%
38%
41%
Indian Apparel
Children's Apparel
Men's Apparel
Women's Apparel
47%
53%
Women's Apparel
Ethnic Women'sApparel
Others Women'sApparel
78%
22%
Organised share in Ethnic Women's Apparel
Unorganised
Organised
Source: Company, PL
TCNS has premium positioning in ethnic wear
Source: Company, PL
TCNS Clothing Co.
July 13, 2018 12
Income Statement
Y/e March FY15 FY16 FY17 FY18
Total Gross sales 3,010 4,861 7,109 8,424
Less: Sales Tax/VAT/ Excise Duty - 7 101 39
Net Sales 3,010 4,854 7,008 8,384
Other Operating Income - - 1 1
Total Revenue 3,010 4,854 7,009 8,385
Revenue Growth 77.5% 61.3% 44.4% 19.6%
Sales Tax/VAT/ Excise 0.0% 0.1% 1.4% 0.5%
Cost of RM consumed 989 1,438 1,804 2,199
Purchase of Stock 3 6 6 -
Change in Stock (279) (405) (486) (351)
Job work charges 568 844 1,275 1,528
Gross Profit 1,728 2,971 4,410 5,010
Gross Margin 57.4% 61.2% 62.9% 59.8%
Operating Expenses 1,217 2,112 2,911 3,240
Personnel Expenses Excluding ESOP 354 678 798 1,021
% of Sales 11.8% 14.0% 11.4% 12.2%
Store Operating Costs 361 684 942 1,139
% of Sales 12.0% 14.1% 13.4% 13.6%
Selling and Distribution 294 276 451 466
% of Sales 9.8% 5.7% 6.4% 5.6%
Advertisement and sales promotion 79 247 395 335
% of Sales 2.6% 5.1% 5.6% 4.0%
Other Expenses 128 228 325 280
Adj. EBIDTA 511 860 1,499 1,770
Growth % 137.8 68.2 74.4 18.0
EBIDTA Margin 17.0% 17.7% 21.4% 21.1%
Cost of Retail 40.4% 43.5% 41.5% 38.6%
Interest 49 29 25 7
Less Depreciation 62 89 134 167
Depreciation % of GB
PBT From operations 400 741 1,341 1,597
Other Income 10 21 19 67
Profit before tax 410 762 1,360 1,664
Total tax 147 279 466 467
Tax rate 35.8% 36.6% 34.2% 28.1%
Current Taxation 161 390 406 484
Deferred Tax (14) (111) 59 (16)
9.8% 39.9% -12.7% 3.5%
Adjusted Profit after Tax 263 483 894 1,197
PAT Growth 200.5% 83.9% 85.0% 33.8%
Extraordinary Income/(Expenses) - (898) (736) (215)
Other Comprehensive Income (OCI) - (1) (1) (3)
Reported Profit 263 (416) 157 978
Net Profit Margin 8.7% -8.6% 2.2% 11.7%
Source: Company, PL
TCNS Clothing Co.
July 13, 2018 13
Balance Sheet
Y/e March FY15 FY16 FY17 FY18
Non-Current Assets
Property Plant and Equipment 203 379 458 506
Other Intangible assets 8 14 11 13
Capital Work in Progress 1 2 8 25
Intangible Assets under Development 0 0 25 56
Financial Assets
Investments 9 13 17 0
Other Financial Assets 0 201 347 393
Deferred Tax Assets (Net) 50 155 97 115
Non-Current Tax Assets 0 0 126 95
Other Non-Current assets 14 101 43 72
Total Non-Current Assets 285 866 1,132 1,274
Inventories 892 1,371 1,940 2,312
Financial Assets
Investments 0 0 0 21
Trade Receivables 652 642 997 1,396
Cash and Cash Equivalents 8 28 20 117
Other Bank Balances 61 76 113 374
Other Financial Assets 229 15 10 6
Other Current assets 17 91 46 264
Total Current Assets 1858 2222 3126 4489
Total Assets 2,144 3,088 4,258 5,764
Equity and Liabilities
Equity Share capital 92 92 111 113
Equity instruments 12 11 0 242
Other Equity 1,000 380 2,708 3,960
Total Equity 1104 483 2819 4315
Non-Current Liabilities
Financial liabilities
Borrowings 89 104 5 3
Other financial Liabilities 51 45 38 59
Provisions (Long term) 14 25 37 56
Other Non-Current Liabilities 0 4 5 4
Total Non-Current Liabilities 153 177 86 122
Current Liabilities
Financial liabilities
Short Term Borrowings 309 278 83 0
Trade Payable 454 846 1,093 1,144
Other Financial Liabilities 49 1,156 89 68
Provisions 8 1 1 1
Current Tax Liabilities (Net) 31 96 0 0
Other Current liabilities 35 50 87 114
Current Liabilities 887 2,428 1,353 1,327
Total Liabilities 2,144 3,088 4,258 5,764
Source: Company, PL
TCNS Clothing Co.
July 13, 2018 14
Cash Flow
Y/e March FY15 FY16 FY17 FY18
Profit Before Tax 410 762 1,360 1,664
Depreciation 62 89 134 167
Interest paid 49 29 25 7
Changes in Non-Current Assets (17) (393) (156) (61)
Inc/(Dec) in Working Capital -219 1252 -1747 -909
Tax paid -147 -279 -466 -467
Cash Flow From Operations 138 1,460 (849) 399
Addition to Gross Block -150 -272 -241 -265
Inc/(Dec) in Invest. (3) (4) (4) 17
Cash Flow from Investments (153) (276) (245) (248)
Issue of capital 7 (1,104) 1,442 299
Inc/(Dec) in Loans 56 (16) (294) (85)
Interest paid (49) (29) (25) (7)
Dividend Paid - - - -
Others - - - -
Cash flow from Financing 14 (1,149) 1,123 207
Increase/ Decrease of Cash (1) 34 29 359
Opening Balance 70 69 103 132
Closing Balance 69 103 132 491
Source: Company, PL
Key Ratios
Y/e March FY15 FY16 FY17 FY18
Net Debt 329 279 -44 -488
ROCE 33.5% 65.1% 72.4% 44.4%
ROE 27.1% 60.9% 54.2% 33.5%
Net Debt/Equity 0.3 0.6 (0.0) (0.1)
Interest Coverage (times) 6.4 17.4 37.2 179.3
Debtors ( Days) 79.1 48.2 51.9 60.8
Inventory (Days) 108 103 101 101
Creditors ( Days) 55.1 63.6 56.9 49.8
Net working capital as % of sales 38.5% 26.2% 28.2% 36.4%
EV/ EBIDTA 64.9 38.5 26.5 22.5
Source: Company, PL
TCNS Clothing Co.
July 13, 2018 15
Analyst Coverage Universe
Sr. No. Company Name Rating TP (Rs) Share Price (Rs)
1 Asian Paints Hold 1278 1292
2 Avenue Supermarts Reduce 1197 1522
3 Britannia Industries Accumulate 6170 6217
4 Colgate Palmolive Reduce 1075 1151
5 Dabur India Hold 377 385
6 Emami Accumulate 577 523
7 Future Retail BUY 682 567
8 GlaxoSmithKline Consumer Healthcare Hold 6800 6390
9 Hindustan Unilever Accumulate 1627 1644
10 ITC BUY 346 265
11 Jubilant FoodWorks Hold 1435 1432
12 Kansai Nerolac Paints Accumulate 526 480
13 Marico Hold 313 341
14 Nestle India UR 8893 9785
15 Pidilite Industries Accumulate 1175 1064
16 Titan Company BUY 1114 893
17 Tribhovandas Bhimji Zaveri Accumulate 120 85
PL’s Recommendation Nomenclature (Absolute Performance)
Buy : > 15%
Accumulate : 5% to 15%
Hold : +5% to -5%
Reduce : -5% to -15%
Sell : < -15%
Not Rated (NR) : No specific call on the stock
Under Review (UR) : Rating likely to change shortly
TCNS Clothing Co.
July 13, 2018 16
ANALYST CERTIFICATION
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